Perplexity has named SOL, XRP, and SHIB among the altcoing to watch next year.
2023 is at its end and can be easily categorized as a positive year for the cryptocurrency sector, especially its end. Many digital assets recorded triple- and even quadruple-digit gains, which leads to the question of what could happen in the next 12 months.
According to a popular AI chatbot – Perplexity – several altcoins, alongside Bitcoin, stand out as the ones to watch in 2024.
Will 2024 Be the Year of Bitcoin?
As reported earlier, the primary cryptocurrency outperformed almost all traditional financial assets in 2023. Its gains, even though the year still has some hours left in it, are firm within the triple-digit territory of around 150%.
The indications for next year are similarly bullish. After countless rejections of spot Bitcoin ETFs from numerous companies, the US Securities and Exchange Commission is anticipated to finally greenlight such a product, especially given the applications of behemoths like BlackRock, Fidelity, VanEck, WisdomTree, and others.
Although some have warned that this could turn out to be a sell-the-news moment, mostly in the first few months, the implications of spot exchange-traded funds operating on the largest financial market in the world are highly bullish. Some expect the ETFs will result in market inflows of around $30 trillion in advised wealth in the following years.
Additionally, the fourth-ever BTC halving will take place in the spring of next year. Each previous one has served as a catalyst for a bull market start. Although history should not be regarded as an indicator of future price performances, one must not take the implications of reduced production rates lightly.
As such, Perplexity listed Bitcoin as the first digital asset to watch in 2024:
“Bitcoin (BTC): As the original cryptocurrency, Bitcoin continues to hold the top spot in market capitalization and is considered the best crypto by many.”
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SOL, XRP, ETH, and SHIB
Next on the list of Perplexity’s cryptocurrencies to watch in 2024 was Ethereum. Being the second-largest digital asset, it certainly earned its place. Moreover, ETH is among the underperformers this year, having surged by a modest 84%, compared to BTC’s 150% rise.
Nevertheless, the Ethereum blockchain is home to numerous projects, tokens, and even digital asset niches. The team behind the protocol, including the co-founder Vitalik Buterin, is constantly working on improving the network, which could ultimately benefit ETH holders in 2024.
Solana was mentioned next, which is quite expected. SOL has been the top performer from the larger-cap altcoins, having soared by 670% YTD. Its price blew past $100 earlier in December and even neared $130 at one point but has retraced since then.
Solana has outperformed Ethereum on multiple fronts in the past month or so, as reported recently. As such, there’s a lot of hype around the network and the native asset for the upcoming year.
“Solana (SOL): Solana is a layer-1 blockchain platform that has been growing rapidly and is considered a top cryptocurrency to watch,” – said Perplexity.
Ripple’s own token also found a place on the AI chatbot’s list for digital assets to watch in 2024. XRP soared after Ripple’s two court victories in 2023 against the US SEC but has retraced since then and currently stands with YTD gains of around 80%.
Nevertheless, the battle with the US securities regulator is far from over and is expected to come to an end somewhere in 2024. This undoubtedly places XRP and the entire Ripple ecosystem on the list of digital assets to watch next year, given the implications of proving whether or not the token is actually a security.
On the other hand, Shiba Inu (SHIB) and Terra’s LUNC are the two coins that found a place in Perplexity’s honorable mentions list.