Recently, the crypto market has been deflating, resulting in a multitude of investors withdrawing from several top-tier altcoins. While only time will reveal the wisdom of these choices, the present situation does provide an opportunity to make the most of this market volatility and invest in some potential projects before the market takes a bullish turn.
This flip in trend could occur around the end of 2024 or the start of 2025, aligning with the anticipated rate cuts and Bitcoin’s (BTC-USD) increased scarcity following the halving impact. It has often been observed that Bitcoin takes a few months after halving events to make notable moves. It’s plausible we’ll witness a similar trend this time, particularly in light of the recent all-time highs reached by Bitcoin following approval of spot Bitcoin ETFs.
If you share the belief that the crypto market will enjoy a resurgence in tandem with Bitcoin, it’s worth considering these projects.
Ethereum (ETH-USD), albeit a significant altcoin, has not performed exceptionally this cycle. Its gains have mirrored Bitcoin’s, but without the brilliance of past cycles. Despite Ethereum being a substantial ecosystem that could rival Bitcoin’s market capitalization during altseason surges, it hasn’t seen significant outperformance of Bitcoin recently. The main factor behind this could be the lack of spot Ethereum ETFs trading on the open market.
However, a glimmer of hope can be seen. Recently, an interview with Senior ETF Analyst Eric Balchunas revealed that the SEC’s comments on the S-1 filings were fairly insignificant, suggesting possible approval by July 2. “Despite this, the SEC has not specified an exact approval timeline beyond stating it will occur sometime this summer, contingent on issuer responses,” as reported. This approval could lead to a wave of hedge funds investing in Ethereum, reminiscent of Bitcoin earlier in the year.
Rate cuts are expected to drive up prices for Ethereum and other tokens. With falling interest rates, both institutions and individual investors will find Ethereum staking for high yields a worthwhile endeavor.
Next on the list for potential spot ETF designation is Solana (SOL-USD). This layer-1 chain has managed to maintain its relevance from the previous crypto cycle to the present. Solana has demonstrated its competitive edge versus Ethereum in various niche crypto sectors. With an impressive market share in non-fungible tokens (NFTs) and a memecoin-friendly ecosystem courtesy of low fees, Solana is an appealing choice.
The significant upside potential for Solana, interestingly, lies in Ethereum’s hands. If Ethereum’s blockchain becomes extremely active and transaction fees start going up, Solana’s ecosystem could benefit from the redirected traffic. Having observed this happening previously, using Ethereum’s growth as a measuring stick for Solana’s potential seems logical. Furthermore, the Solana team’s success in minimizing network downtime makes this ecosystem a strong contender for future growth.
The Render Token (RNDR-USD) is currently a speculative venture. Render serves as the “digital fuel” for AI models requiring rapidly increasing rendering power. It lets users sell their computing power to the blockchain, purchased in bulk with RNDR tokens by others. Render has gained traction with companies and individuals seeking a cost-effective, decentralized method for rendering their projects.
With the rise in prices for AI GPUs used in rendering, the institutional interest could surge, making Render a project worth considering for those who believe in the long-term support for rendering activity.
This view is held by the writer and is not a direct recommendation. As of the date of publication, Omor Ibne Ehsan does not hold any direct or indirect positions in the securities mentioned in this article.
Let us know what you think. Please share your thoughts in the comments below.
