The year 2023 has come to an end and can easily be classified as a positive year for the cryptocurrency sector, especially its end. Many digital assets saw triple and even quadruple-digit gains, raising questions about what could happen in the next 12 months.
According to a popular AI chatbot – Perplexity – several altcoins stand out alongside Bitcoin to keep an eye on in 2024.
Will 2024 be the year of Bitcoin?
As previously reported, the main cryptocurrency has outperformed almost all traditional financial assets in 2023. Even if the year still lasts a few hours, their increases are firmly in the three-digit range of around 150%.
The signs for next year are similarly optimistic. After countless rejections of spot Bitcoin ETFs by numerous companies, the US Securities and Exchange Commission is expected to finally give the green light to such a product, especially given the applications of giants such as BlackRock, Fidelity, VanEck, WisdomTree and others.
Although some have warned that this could prove to be a best seller, especially in the early months, the impact of spot exchange-traded funds operating in the world's largest financial market is extremely positive. Some predict that the ETFs will drive market inflows of around $30 trillion in assets under management in the following years.
Additionally, the fourth-ever BTC halving will take place in the spring of next year. Each previous one has served as a catalyst for the start of a bull market. Although history should not be viewed as an indicator of future price trends, the impact of reduced production rates should not be taken lightly.
Therefore, Perplexity listed Bitcoin as the first digital asset to watch in 2024:
“Bitcoin (BTC): As the original cryptocurrency, Bitcoin continues to hold the top spot in market capitalization and is considered by many to be the best cryptocurrency.”
SOL, XRP, ETH and SHIB
Ethereum was next on the list of cryptocurrencies to watch in 2024. As the second largest digital asset, it certainly deserves its place. Additionally, ETH is among the underperformers this year, having only risen a modest 84% compared to BTC's 150% rise.
Nevertheless, the Ethereum blockchain hosts numerous projects, tokens, and even digital asset niches. The team behind the protocol, including co-founder Vitalik Buterin, is constantly working to improve the network, which could ultimately benefit ETH holders in 2024.
Solana was mentioned next, which was entirely to be expected. SOL has been the top performer among larger cap altcoins, up 670% year-to-date. The price broke through $100 in early December and even approached $130 at one point, but has since declined.
As recently reported, Solana has outperformed Ethereum on multiple fronts over the past month. Therefore, there is a lot of hype surrounding the network and the native asset in the coming year.
“Solana (SOL): Solana is a Layer 1 blockchain platform that is growing rapidly and is considered one of the top cryptocurrencies to keep an eye on,” said Perplexity.
Ripple's own token also found a place on the AI chatbot's list of digital assets to watch in 2024. XRP surged following Ripple's two 2023 court victories against the US Securities and Exchange Commission (SEC), but has since declined and is currently at YTD gains of around 80%.
Still, the battle with the U.S. Securities and Exchange Commission is far from over and is expected to end sometime in 2024. This undoubtedly puts XRP and the entire Ripple ecosystem on the list of digital assets to watch over the next year, given the impact of the review, whether the token is actually a security or not.
On the other hand, Shiba Inu (SHIB) and Terras LUNC are the two coins that found a place in Perplexity's honorable mentions list.
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