The Next Big Crypto Investment: What Comes After Bitcoin?

Bitcoin is the original cryptocurrency, and it has inspired a legion of followers and spinoffs. However, with thousands of different cryptocurrencies available, it can be challenging to identify the next big investment opportunity. Some factors to consider when evaluating a cryptocurrency include market capitalization, the exchanges where the token is listed, and the problem it aims to solve. While it is impossible to know for sure which cryptocurrency will be the next big thing, some contenders include Ethereum, Tether, Binance Coin, Solana, and Dogecoin. These cryptocurrencies have strong use cases, such as decentralized finance (DeFi), smart contracts, and decentralized applications (DApps), and have seen significant growth in market capitalization and price. Additionally, some lesser-known cryptocurrencies, such as Render Token, Monero, and Sei, could also be worth watching as they address specific needs in the market.

Ethereum

In September 2022, Ethereum transitioned to a proof-of-stake system, improving its energy efficiency and scalability. This upgrade also allows investors to stake Ethereum and earn more, potentially attracting more investors.

While it may not experience the same explosive growth as some smaller cryptocurrencies, Ethereum offers investors a more stable option with strong upside potential. Its ability to continuously evolve and adapt to the changing landscape of the cryptocurrency market makes it a solid choice for investors looking for a combination of stability and growth in the crypto space.

Tether

In May 2022, Tether announced the launch of MXNT, a new stablecoin backed by the Mexican peso, marking its expansion into the Latin American market. In June 2024, Tether announced the launch of Alloy by Tether, a synthetic dollar backed by gold.

Binance Coin

Binance Exchange, founded by Changpeng Zhao, is one of the most widely-used cryptocurrency exchanges in the world based on trading volumes. Users of the token who employ it as a means of payment for the exchange can trade at a discount.

The Binance Coin was initially an ERC-20 token that operated on the Ethereum blockchain. It eventually launched a mainnet and uses a proof-of-stake consensus model. On July 22, 2023, Binance Coin had a market capitalization of $37.3 billion, with one BNB valued at around $242.55.

Binance has two blockchains, which reduce the bottlenecks that Ethereum is vulnerable to. It is also fast and scalable, and the platform is being made more regulator-friendly—a crucial feature for its longevity and widespread adoption.

In addition, Binance recently launched Bifinity, a fiat-to-cryptocurrency payment platform that will help merchants accept digital assets as payments. The payment processing platform supports more than 50 cryptocurrencies and major payment networks like Visa and Mastercard.

On the downside, the Securities and Exchange Commission is investigating whether Binance acted improperly in its launch of BNB, mishandled investor funds, and lied to regulators. A major fine or sanction could hurt BNB prices.

Solana

The bullish outlook for Solana is supported by its ability to rebound from setbacks. After a sharp decline in 2022, the last quarter of 2023 marked a significant turnaround for Solana, with its price surging above $120. As of June 2024, SOL is trading above $170, reflecting the underlying strength and improvements within the Solana network.

The future of Solana looks promising, with crypto analysts predicting substantial long-term growth. Some experts see Solana challenging its 2021 highs again in the coming years, potentially reaching prices of around $260 or even surpassing its previous all-time high.

However, it is important to note that the cryptocurrency market is highly volatile and unpredictable, and Solana has faced challenges with network congestion and outages. Therefore, investors must carefully consider the risks and conduct thorough research before making any investment decisions.

Cardano

Ouroboros, on the other hand, uses a network of invested participants called validators. These validators stake their own ADA, Cardano's native cryptocurrency, and the network selects a winner based on the amount of ADA staked and the length of time it has been staked for. The winner validates the latest block of transactions, and other validators can then attest to the accuracy of the block. Once a threshold number of attestations have been made, the blockchain is updated, and all validators receive a reward in ADA, proportional to their stake.

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