Updated January 1st, 2024 at 18:11 IST
Here’s how Bitcoin outperformed its crypto peers with close to 160% jump in 2023
Despite facing a period of average performance for several months, leading cryptocurrencies have finally delivered substantial returns for their investors.
Bitcoin shining bright: The crypto markets which are often characterised by their inherent volatility and the absence of a well-defined legal framework, had a year of considerable fluctuations in 2023. The industry witnessed significant liquidations amid the absence of clear regulations. However, as the year progressed, a sense of stability emerged, fueled by positive developments such as BlackRock’s Bitcoin ETF approval and the growing anticipation around Bitcoin halving.
Despite facing a period of average performance for several months, leading cryptocurrencies have finally delivered substantial returns for their investors as the year approaches its conclusion. But as always, some performed better than others.
Today, we are sharing a list of cryptocurrencies which have generated substantial returns for their investors and still have the potential to grow more in 2024.
Despite being the oldest player, Bitcoin recorded 163 per cent surge in 2023 with the hopes of BlackRock’s ETF being approved by the US Securities and Exchange Commission. Apart from that, Bitcoin halving, a once-in-a-four-year event on blockchain that reduces the Bitcoin minting reward to half, is also set to take place in 2024.
Slashing the Bitcoin reward to half will create deflationary pressure on the currency which is expected to increase its value significantly.
Bitcoin offers scarcity and censorship resistance, attracting investors seeking a reliable store of value. Its resilience and continued growth affirm its status as a foundational asset in the crypto space.
SOL has surged by an impressive 862 per cent in 2023, driven by its high-performance blockchain. Its unique proof-of-history consensus solves scalability issues, offering fast and cost-effective transactions on the mainnet. Solana was built to solve the problems that persist in Ethereum and it has been able to do it effectively. This innovation positions Solana as a robust platform for building decentralised applications, attracting widespread attention and investment.
This week, SOL surged as high as $95, recording a new high in the last 19 months but still far from its all-time high of nearly $260 in November 2021, This uptrend is also driven by some leading projects which have performed well this year including BONK token which is built on Solana and have gained more than 6100 per cent.
Avalanche's remarkable 318 per cent gain in 2023 is fueled by its focus on blockchain interoperability and scalability. Avalanche achieves decentralisation through a network of subnets which enhances its efficiency and security giving it an edge over Ethereum.
In 2023, Avalanche subnets gained adequate popularity with its subnets such as DFK and DEXALOT, which are now dealing with a higher transactional volume than the Avalanche C-Chain as a whole. With the increased use of subnets, the total mining fees of the blockchain are burned which eventually creates a deflationary pressure on the currency.
According to the on-chain data, 76.6 per cent of all Avalanche wallets are currently seeing a profit on their investments.
Chainlink, with a notable 171 per cent increase, plays a pivotal role in the crypto landscape. It specialises in ensuring smart contracts' real-world connectivity by providing secure and reliable data feeds. This unique offering has contributed to Chainlink's substantial growth in 2023, solidifying its position in the market.
This year, Chainlink's developers have also published an extensive study that shows that the Chainlink blockchain could be enhanced greatly by leveraging Artificial Intelligence. This study positioned Chainlink as an ‘AI token,’ fueling the crypto further.
Ethereum's 91 per cent increase in 2023 underscores its significance as a decentralised platform. Enabling smart contracts and decentralised applications, Ethereum fosters innovation within the broader blockchain ecosystem. ETH is currently trading above $2,200 following the footsteps of Bitcoin and is expected to maintain this pace during the anticipated BTC bull run.
The Ethereum community is also looking forward to the ETH ETFs which have a high chance of approval after BlackRock’s Bitcoin ETF gets listed on international exchanges.
Investors are also drawn to ETH’s versatility and potential for transformative applications, solidifying its role as a key player in the evolving crypto landscape.
Published December 23rd, 2023 at 15:56 IST