3 cryptos that could eclipse Bitcoin this year

The fourth Bitcoin halving occurs every four years to curb inflation. Historically, Bitcoin prices tend to rise after halvings due to lower supply. Investors prioritize coins with solid use cases for optimal profits. Despite reaching record highs, Bitcoin remains a top choice. This is a reasonable entry point as the price recently fell to around $65,000 from $73,000 in March.

Three cryptos had the potential to dethrone Bitcoin due to its network deficiencies: high fees, slow transactions, no smart contracts, and energy consumption. The introduction of a 30% mining tax by regulators signals a shift towards PoS and ASIC-resistant coins.

Solana (SOL-USD)

First up is the DeFi giant Solana (SOL USD). SOL is expected to see increasingly strong growth before and after the halving. Among other cryptocurrencies, Solana is the cryptocurrency with the highest growth rate, especially Ethereum. With similar functionalities but cheaper transactions and faster speeds, Solana is up 75% in 2024 due to its potential to displace Ethereum.

Decentralized exchange Drift powered by Solana announced plans for a governance token alongside a sizable airdrop of 100 million tokens. This token allows holders to participate in future protocol decisions orchestrated by the Drift Foundation and proposed by community contributors.

With an announcement on April 16, Drift intended to allocate 10% of DRIFT’s total supply, equivalent to 180,000 users, based on their interactions within the Solana platform since its launch in 2021.

Crypto analyst Crypto Tony tweeted about SOLs bullish symmetrical triangle pattern, which often indicates bull rallies on a breakout. Although the price is at the halfway point, indicating possible volatility within a few days, AMBCrypto’s metrics found supportive signs of a price increase. SOL’s funding rate fell and open interest fell, indicating a possible trend reversal.

Avalanche (AVAX-USD)

Another notable token that could leave Bitcoin on the charts ahead of the halving is avalanche (AVAX-USD). With a sharp rise in market capitalization and an impressive 344% growth in recent quarters, AVAX is a big player to take advantage of. Due to its secure and stable network, investors are optimistic that AVAX will see further gains post-halving.

Despite price declines, AVAX-USD remains resilient and holding above crucial support levels, indicating stability in the market. With a neutral relative strength index (RSI) of around 48, AVAX shows potential for stabilization and subsequent growth. Additionally, data indicating that many AVAX holders are “in the money” suggests a lower risk of panic selling, increasing confidence in future growth.

The token peaked at $65 on March 18th and then fell to $30 on April 13th, a 55% decline. On April 14, it recovered to $38 and settled above $34. Despite a 50% loss in a month, most investors still see a 57.68% gain. Expect a recovery, possibly a wave B or a new uptrend, with a target close $45 and the potential to reach $50.

As investment flows and development progresses, Avalanche is poised to significantly improve its market position.

Polkadot (DOT-USD)

Due to its interconnected blockchains, it is a token that investors undervalue Speckle (DOT USD). Its parachain system increases throughput and interoperability, potentially exceeding the capacity of Ethereum over 1,000 transactions per second. This extends its usefulness beyond finance to various sectors.

In 2023 the coin will be Progress made in scalability, boosting transactions and setting the stage for growth in 2024. Trustless bridges and other improvements strengthened the infrastructure. With the rise of Ethereum and Solana, DOT is aiming for the top spot, supported by a strong developer community. The release of Polkadot 1.0 and asynchronous support represent milestones and improve scalability for Web3.

Powerful GitHub Activity signals Community engagement is reflected in an increase of nearly 15% since the beginning of the year. While Bitcoin dominates the pre-halving discussions, DOT offers greater upside potential, especially compared to Ethereum’s 45% surge. Its unique parachain structure and lower fees could secure its position over Ethereum through continued adoption.

DOT is emerging as a contender to the Bitcoin throne worthy of close scrutiny by investors.

At the time of publication, Chris MacDonald did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.