Over the past 12 months, XRP has been one of the hottest cryptocurrencies in the world.
The crypto market is now valued at $4 trillion and includes literally tens of thousands of different cryptocurrencies. However, just a handful of names account for the majority of the value of the entire crypto market. Bitcoin (CRYPTO: BTC), for example, accounts for a whopping 58%.
While it might be tempting for first-time crypto investors to dabble in meme coins or highly speculative microcap cryptocurrencies, it’s best to focus on high-quality, large-market-cap names with proven track records. Here are the three growth cryptocurrencies you should know.
The obvious, no-brainer pick is Bitcoin. This was the first-ever cryptocurrency, launched all the way back in 2009. In terms of growth, it is simply unparalleled. Bitcoin first traded for $1 in 2011; $100 in 2013; $1,000 in 2017; $10,000 in 2019; and $100,000 in 2024.
Notice a pattern here? Some experts are already predicting that Bitcoin could hit $1 million by 2028.
Bitcoin is typically the first cryptocurrency that both retail and institutional investors choose to own. And for good reason — it has shown remarkable staying power over the past decade and is now a must-have for any truly diversified portfolio. Even a relatively tiny 1% allocation to Bitcoin can help to turbocharge future returns.
Next up is Ethereum (CRYPTO: ETH), which has actually outperformed Bitcoin at times over the past decade. Over the past five years, Ethereum is up a head-turning 900%. It’s now trading for $4,200, within striking distance of its all-time high of $4,891 from 2021.
What makes Ethereum unique is that it is both a cryptocurrency and a thriving blockchain ecosystem. In many ways, the Ethereum blockchain is the building block layer for everything that can happen with blockchain technology. This includes everything from decentralized finance (DeFi) to blockchain gaming and non-fungible tokens (NFTs). When valuing Ethereum, investors need to take into account how the various pieces of the Ethereum blockchain ecosystem are faring.
That’s where things get really exciting, because Ethereum is a behemoth in the DeFi space, accounting for 60% of all total value locked (TVL), an important metric in overall blockchain activity. This dominant position helps to explain why Wall Street banks have made Ethereum their preferred blockchain. Not surprisingly, Ethereum is also the top blockchain for stablecoins, which have burst onto the scene as one of the fastest-growing niches of the blockchain world.
