The combined market capitalization of cryptocurrencies increased by 50% in the first three months of 2024, surpassing $2.6 trillion and falling short of its peak of $2.9 trillion. But the market has collapsed by 23% since April, and several cryptocurrencies are now trading close to where they were at the beginning of the year.
The general trend indicates that we are still in a bull market despite this decline. These three cryptocurrencies stand to earn the most when momentum ultimately picks up again, as history indicates.
1. Ethereum: Expecting a significant upswing
Ethereum (CRYPTO: ETH), one of the most severely impacted by the current volatility, has essentially lost ground from the year's beginning. The price of ETH has remained static, which has disappointed many holders while competing Layer 1 cryptocurrencies have gained popularity.
But it's important to understand that this slowness has a transient reason. Ethereum is a cryptocurrency with an infinite supply, in contrast to others. Nevertheless, Ethereum experiences periods of inflation and deflation based on the volume of transactions on the network, as opposed to merely always creating new currency. The amount of ETH burnt from the supply increases with the volume of transactions. But supply might increase as transactions slow down.
Between the middle of 2022 until the start of 2024, Ethereum's supply was deflationary; however, things turned around in April of this year, with a noticeable increase in inflation. This has led to a widespread sell-off, which has negatively impacted Ethereum's price.
However, it's crucial to remember that Ethereum's foundations are still quite solid. Ethereum supports more than 50% of the decentralized finance (DeFi) industry and is home to several Layer 2 solutions that serve even more use cases. Ethereum is the most popular blockchain for DeFi applications.
In terms of revenue, Ethereum is also in the top few. It far outperformed its rivals, generating $2 billion over the previous year. Ethereum is well-positioned for a big price spike whenever its supply returns to a deflationary trend, making it a top pick for a recovery when the bull market restarts.
$ETH 2. Solana: Set up for rapid expansion
In current bull market, Solana (CRYPTO: SOL) has quickly become well-known for its lightning-fast transaction rates and inexpensive fees. Even if Solana has expanded by more than 500% in the last year, it is still 50% behind its peak. However, compared to just a year ago, Solana's network metrics, including transactions per day, active addresses, and total fees, have increased by more than three times.
Solana is seeing a boom of creative use cases, from meme currencies to Decentralized Physical Infrastructure Networks (DePINs), just as Ethereum did during the last cryptocurrency boom.
Solana appears to be ready for a further upswing based on its increasing popularity in important measures. As the bull market gets momentum, Solana may emerge as a major player and post strong returns.
$SOL Aerodrome: The Undiscovered Jewel
Although Solana and Ethereum are well-known, Aerodrome (CRYPTO: AERO), a recent entrant, merits notice. Aerodrome, the leading decentralized exchange (DEX) on Base, one of the most widely used blockchains worldwide, is perhaps a more theoretical move with enormous potential. Because Base lacks a native coin of its own, unlike other blockchains, investors wishing to profit from Base's rapid development are better off investing in Aerodrome.
With over 90% of the DEX volume on Base since its introduction, Aerodrome is one of the most profitable protocols in the whole cryptocurrency market.
Aerodrome's MetaDEX concept, which combines aspects of well-known DEXs like Uniswap and Curve, makes it possible for it to compensate users and token holders by dispersing the substantial income it makes.
Although the price of Aerodrome has dropped by about 60% from its top, this correction is still a great opportunity for investors who can afford to take on more risk. Aerodrome's supremacy on the most well-liked new blockchain might propel its rapid rise in the upcoming bull market era.
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