In 2024, the U.S. stock market achieved remarkable growth over the past year, with the NASDAQ Composite Index rising 33% by Christmas, setting a historic high. However, at the same time, several cryptocurrencies have far outpaced most stocks in growth, becoming the focus of investors. Against the backdrop of many stocks doubling or tripling their annual returns, leading cryptocurrencies have annual returns exceeding 100%.
After years of challenges, Ripple Labs achieved a landmark victory against the U.S. Securities and Exchange Commission (SEC) in U.S. courts, even launching an ETF listed on Wall Street. The risks associated with these crypto assets have significantly decreased compared to the past, no longer regarded as 'high-risk investments' for investors.
But this does not mean that these digital assets are completely risk-free. Just like buying stocks like Apple or Amazon, investors still need to exercise caution. However, as these cryptocurrencies gradually mature, investors may wonder if such an era is gone for good when faced with their astonishing price increases.
These cryptocurrencies are currently at the peak stage of a boom cycle, with market capitalization continuing to rise, potentially lasting for several months or even longer until market demand reaches saturation. Then, prices may retrace, entering another phase of the market cycle.
Four cryptocurrencies that beat Wall Street
Here are four cryptocurrencies that performed outstandingly in 2024, surpassing the return rates of NASDAQ and far outpacing traditional tech stocks in growth speed. For reference, as of December 26, the NASDAQ Index rose 33%. The annual growth rates of these cryptocurrencies are as follows:
Bitcoin (BTC): +126%
Ethereum (ETH): +49%
Solana (SOL): +75%
Ripple (XRP): +247%
The gains of these crypto assets have exceeded NASDAQ and even the returns of traditional tech stocks in just one year. The performance of these assets may remind you of those tech companies that historically created immense wealth growth. But this is not their first time achieving such astonishing results within a year.
1. Bitcoin (BTC) 2024 Performance: +126%
As the first cryptocurrency, Bitcoin has pioneered the entire crypto space since its inception in 2009. This year, Bitcoin's market capitalization surpassed $1.9 trillion, achieving a 126% annual return in 2024.
Bitcoin's ability to outperform NASDAQ is mainly due to the following factors:
January 10: The U.S. Securities and Exchange Commission (SEC) approves Bitcoin Wall Street ETF
April 20: Bitcoin supply halving
November 5: Donald Trump re-elected
As an asset known as 'digital gold', Bitcoin's security and scarcity on a global scale make it a favorite among investors. The U.S. regulators' 'hands-off' policy towards Bitcoin, coupled with the launch of ETF products, reduces its risks and enhances liquidity.
2. Ethereum (ETH) 2024 Performance: +49%
Ethereum, as the second-largest cryptocurrency after Bitcoin, is backed by a powerful smart contract platform. The emergence of smart contracts means that Ethereum is not just a cryptocurrency but also the foundation of the decentralized finance (DeFi) ecosystem. Smart contracts allow users to conduct complex transactions and execute agreements without intermediaries.
Ethereum's success in 2024 is closely related to the following factors:
July 22: SEC approves Ethereum ETF listing
September 18: Federal Reserve cuts interest rates
Trump's Re-election
As blockchain and crypto assets gradually gain popularity, Ethereum, as a key component of decentralized finance, attracts a large number of investors. The latest analysis from CryptoQuant also indicates that the market outlook for Ethereum remains optimistic.
3. Solana (SOL) 2024 Performance: +75%
Inspired by Ethereum, Solana is another platform focusing on smart contracts and decentralized finance. With higher network throughput and lower transaction fees, Solana has gradually narrowed the gap with Ethereum. Although Solana's market capitalization is still lower than that of Bitcoin and Ethereum, it has become a significant highlight in the DeFi space.
Solana's outstanding performance in 2024 can be attributed to several factors:
High network throughput and low transaction fees allow it to stand out in DeFi competition
The macroeconomic environment of the Federal Reserve's low interest rate policy and Trump's re-election
The popularity of Solana meme coins has driven market attention
Solana's success relies not only on technological innovation but also on the active participation of its community, making it a rapidly rising cryptocurrency ecosystem.
4. Ripple (XRP) 2024 Performance: +247%
XRP is a cryptocurrency launched by Ripple Labs, aimed at providing cross-border payment solutions for global financial institutions. In 2024, XRP's performance outperformed all cryptocurrencies, with an annual return of 247%.
Ripple's success is attributed to its significant victories in U.S. courts, particularly the key progress made in the long-standing lawsuit with the SEC. Additionally, Ripple actively promotes global business cooperation and the construction of cross-border payment networks, which also provides strong momentum for the growth of XRP.
Ripple's explosion in 2024 is primarily driven by the following factors:
Several decisive victories for the U.S. courts against the SEC
The Federal Reserve's low interest rate policy and Trump's re-election
Ripple actively promotes global business cooperation
The market outlook for XRP remains optimistic, with technical analysis showing that as long as it maintains its current support level, the bull market is likely to continue.
Is the 'golden age' of cryptocurrency upon us?
As cryptocurrency market returns surpass traditional tech stocks, investors can't help but ask: Has the 'golden age' of cryptocurrency arrived? Of course, the market is always full of uncertainty, and no one can predict the future's twists and turns. However, it is certain that digital assets are entering mainstream financial markets at an unprecedented pace.
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