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As 2023 draws closer, the cryptocurrency market is again in the green zone. Let’s find out which were the top-performing cryptos of the year.
The year 2023 presented a mixed picture for the crypto market. Initially grappling with the aftermath of the FTX crypto exchange’s rapid collapse, by year-end, investors found themselves in a favorable position. Several altcoins experienced growth levels unseen in the crypto community for years.
The editors at crypto.news have curated a selection of tokens that can be considered the best-performing crypto coins of 2023.
Top 6 crypto gainers in 2023
Highest performing crypto: Bitcoin
Bitcoin (BTC) is the most popular and expensive cryptocurrency, solidifying its position as one of the biggest crypto winners this year. Bitcoin’s market capitalization is currently the highest, comprising more than half of the entire cryptocurrency sector’s market capitalization. This means that most crypto users either invest in Bitcoin or hold their assets in this cryptocurrency.
Bitcoin price in 2023 | Source: CoinMarketCap
Although countless cryptocurrencies and blockchain platforms have been released since Bitcoin, it is still the largest cryptocurrency by market capitalization.
Since the beginning of the year, the leading cryptocurrency’s value has increased by more than 163%, reaching three times its price in early January. In addition, Bitcoin climbed to its highest level in December since April 2022.
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Best performing altcoins
Cardano
Cardano (ADA) represents the cryptocurrency of its eponymous blockchain platform. Though the platform’s development commenced in 2015, the token was officially launched in 2017. Charles Hoskinson, Cardano’s developer, is also recognized as a co-founder of the Ethereum project.
Cardano price in 2023 | Source: CoinMarketCap
Interest in ADA only began to surge in early 2023. On Jan. 4, 2023, the coin was valued at just $0.29. The coin’s price has since exceeded $0.59 per token and continues to rise. Since the beginning of the year, the ADA token’s value has surged by more than 147%.
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Ripple
Ripple is a digital technology designed to optimize online payment solutions. The system was created and launched in 2012. The authors of the coin are Jed McCaleb and Chris Larsen. The distributed, open-source protocol used on the Ripple (XRP) blockchain enables instant transaction processing with advanced security features. Over the past year, the XRP price has fluctuated between $0.17 and $1.96.
XRP price in 2023 | Source: CoinMarketCap
For one of the most prominent altcoins on the cryptocurrency market, XRP, 2023 was like riding a roller coaster. This was facilitated by several positive and negative events, which mainly revolved around the protracted legal battle between Ripple and the Securities and Exchange Commission (SEC). After Ripple’s partial victory, the token showed explosive growth to $0.82. Within a year, it surged 80%.
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Tron
Tron (TRX) is a cryptocurrency coded in Java, boasting a completely decentralized system. Developed by the non-profit Tron Foundation based in Singapore, this network gained recognition after Samsung officially integrated its blockchain into the Samsung keystore in early 2020.
Tron price in 2023 | Source: CoinMarketCap
Last month, Tron has been gaining traction, notably in USDT transactions, despite not being the world’s largest or most renowned blockchain. Google Trends shows global interest in USDT on Tron is as high as USDT on Ethereum over the previous year.
Along with the growing popularity of the Tron blockchain, the TRX token is gaining strength – its price has increased by 91% over the past year.
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Ethereum
This is a promising altcoin acclaimed for its innovative focus. Ethereum (ETH) is not just a cryptocurrency but a full-fledged platform for developers.
Within its framework, users can create assets using blockchain technology and smart contracts. On-chain transactions can take 15 seconds, while BTC takes about 15 minutes.
In December, the average price of Ethereum gas rose to 62.25 Gwei, almost doubling over the month and reaching its highest level since mid-May this year. Ethereum’s gas fees have consistently mirrored network demand throughout its history.
Ethereum gas fees | Source: YCharts
ETH’s popularity in the current year is evident in its rising price. Since the beginning of the year, the coin has grown by more than 96%.
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Solana
Solana (SOL) reached a new yearly high of $95.4 in the end of December. Since the start of the year, the token has surged in price by over 711%, making SOL one of the highest-performing cryptos.
Let’s remember the collapse of the FTX crypto exchange in November 2022, a major investor in Solana. The exchange had acquired a significant batch of SOL. Its exit and the potential sale of coins led to Solana’s decline. As a result, crypto community members speculated about the imminent demise of the project.
Despite the pessimistic forecasts, Solana survived and began to recover. Experts credited the project’s “survivability” to the team’s use of stress testing to resolve bugs.
Solana price in 2023 | Source: CoinMarketCap
Solana’s active growth coincided with the court’s verdict on the FTX case. The founder of the crypto exchange, Sam Bankman-Fried, was found guilty of all charges. Now that SOL is freed from pressure from a powerful partner, the project’s fate no longer seems unclear. This situation enhances Solana’s appeal to potential investors.
Solana has several reasons for its positive momentum. Firstly, there’s a demand for technical solutions within the project, particularly seen in the surge of defi activity. Secondly, the project recovered from the setback caused by the collapse of the FTX crypto exchange.
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What awaits the crypto community in 2024
The investment company VanEck shared its forecast of events in the crypto market in 2024. Experts predict that Bitcoin’s halving in April 2024 will occur without significant shocks. Miners who are at a loss will leave the market. After a short period of consolidation, the Bitcoin price will rise above $48,000.
In the second half of 2024, the rate of the first cryptocurrency is expected to grow and strengthen. If Bitcoin reaches $100,000 by December, Satoshi Nakamoto is more likely to be named “Person of the Year” by Time magazine, according to VanEck. However, Ethereum will not be the leader in the cryptocurrency race, but it will “outperform all tech stocks.”
In a recent report, Matrixport analysts confirmed their February forecast of a Bitcoin price of $45,000 by the end of 2023. The head of the company’s research department, Markus Thielen, emphasized that the first cryptocurrency “does not move randomly.” Key factors in its dynamics are “crowd psychology and macroeconomics” and “liquidity indicators and the state of market structures,” which are used to understand short-term trends.
At the same time, Matrixport predicted that Bitcoin will rise in price to $63,140 by April 2024 and $125,000 by the end of the following year.
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