Those who know and experience the cryptocurrency market know that volatility is almost constant. Unlike what is usually observed in centralized markets, here the variations in quotes are so large that double-digit changes in percentage do not usually scare those who follow such transactions as much.
Anyway, moving away from the common sense of jumping into a crypto just because we have heard a lot about it (or because its price has risen a lot recently), here we are going to list five cryptos that you should pay attention to in the next bullish cycle ( or bull run, as you prefer) according to reasons that help to better understand how these projects stand out from the rest.
Let's get to these projects!
Bitcoin: the 'halving' and the US retail market will make a difference
We recently explained here why the 'halving' of Bitcoin is a reason to pay attention to this project, as well as a change in the US market.
You can see the details there, but the summary of the story is that with the 'halving' the incentives to mine are reduced (which may contribute to a slower increase in the supply of the next units) and, at the same time As it happens, Bitcoin ETFs that began operations in January 2024 will begin to hit the shelves of major US financial institutions - and, with the US retail sector having a larger presence in this market than institutional ones, this points to an increase in the demand.
Given this combination of factors, which together may indicate considerable bullish room, consider Bitcoin fondly in your next crypto allocations.
Ethereum: relevant participation in DeFi
Within the field of financial innovations that cryptocurrencies provide, one of the most relevant aspects is found in the so-called Decentralized Finance (or DeFi). Through this field, we can verify the occurrence of transactions that depend solely on the network in which they are carried out and not on the eventual failed authorization of people.
Looking at Binance Research's monthly Key Trends in Crypto reports, we see that when it comes to decentralized finance, Ethereum alone accounts for 50-60% of everything. the market. A considerable domain!
Therefore, with such relevance and participation, Ethereum is a project worth having on your radar (if it is not already!) for new allocations in crypto because, with an expansion in the global participation of decentralized transactions against traditional financial markets, we will surely see a positive reflection in this crypto in terms of price.
Solana: increasing its relevance in DeFi
One of the most interesting aspects of the crypto universe is that it allows initiatives that complement the functions (or even correct errors) of previous projects to quickly gain space.
As for DeFi, this happens with Solana.
This project, which began in 2017 but only really came to fruition in 2020, seeks precisely to be an alternative to Ethereum for the creation of decentralized applications (DApps) in DeFi. The biggest difference that this project offers is the 'proof-of-history' (PoH) consensus model, replacing the already known 'proof-of-stake' (PoS).
The technical difference between the two is detailed, but the summary is that, while PoS only allows for a sequence of blocks, when the consensus mechanism works over PoH, there is a possibility that new records, even if they are not sequential, can be registered in parallel.
In a very simplified way, this means that Solana allows for considerable scalability relative to what Ethereum can deliver.
Beyond that, Solana is currently used by people who carry out financial transactions and create DApps of lower capacity, but the project has a foundation that focuses on expanding the base and reach of those who use it, precisely with a focus on this scalability. .
With all this in mind – and still a 94% growth in participation in the DeFi space, according to Key Trends in Crypto's April 2024 report – Solana is worth paying attention to next time you're doing crypto allocations.
BNB: the "base" with renewed confidence
Binance being the largest cryptocurrency exchange in the world and taking into account that it offers the possibility of continuing its growth with your own cryptocurrency, we have in BNB a project that is worth following.
After having gone through some problems that shook the global crypto market and involved the management of the company, Binance today makes it increasingly clear that such issues did not affect the operation of the decentralized revolution and, due to this, the native token ( which can be compared relatively to a company share, even if it is not) is free of possible confusion that could harm its progress in terms of price.
This renewal of the "base" of trust opens the way so that not only Binance can expand its presence in more markets, but also so that this native token can deliver, to whoever has it in their wallet, the profits over time derived from it.
You know that old saying that "in the gold rush, the smartest is the one who sells the shovels"? So: if Binance is an important part of the crypto revolution, being able to follow the growth of its performance is precisely what it means to have BNB in your wallet - and that's why it's worth keeping an eye on.
Dogecoin: the meme that caught
You've probably been irritated when reading this subtitle. "How come they suggest a memecoin?" Well, we are not talking about just a random memecoin, but one of the ten largest cryptos that currently exist in terms of market value.
If your doubt - or indignation, who knows - persists, you should know that, in reality, what makes this project stand out is not some indication on Twitter (X, sorry) of some billionaire very active on the networks, but the use of this crypto.
According to the company Santiment, specialized in on-chain data analysis in its report at the end of 2023, apart from Bitcoin and Ethereum, Dogecoin is the cryptocurrency that has increased the most number of people who have this project in their digital portfolios.
Maybe you still think it's just a memecoin. We will respect you if that is the case. But don't stop paying attention to it anyway, because it is the most relevant meme in the world today.
And you, how will you take advantage of the next crypto bull run?
We have presented here the reasons why five projects are interesting for you to pay attention to in your next assignments. Do these theses seem coherent to you?
Keep following our analysis here at Square, the discussions have only just begun!
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Image by MOHSIN86 on Freepik
