3 cryptos to buy now ahead of the upcoming year-end rally

Analysts are confident in the long-term potential of cryptocurrency and are seeing increasing collaboration between centralized and decentralized systems. Top speakers in this sector emphasize high-quality cryptos as long-term investments for those who are able to handle volatility and seek significant returns. Of course, a certain degree of caution is also required, as this area is prone to crashes much more often than the stock market.

However, despite the recent market slowdown, mega cryptocurrencies are on the rise. Historically, Bitcoin’s rise preceded a rise in other leading tokens, and smaller projects also gained momentum. But for now, it makes sense to focus attention on this sector and the biggest tokens out there. So, let’s do this.

Bitcoin (BTC USD)

The ultimate crypto, Bitcoin (BTC USD), has found new footing near the $70,000 level and appears poised to reach new all-time highs. Speculation about a deep correction has subsided as recent dips have been bought up. Bitcoin’s price action is one thing, but its fundamentals are another. After the recent halving this year and the approval of spot Bitcoin ETFs, a nice imbalance between supply and demand is helping investors.

Accordingly Crypto analyst Starbust, Corrections in Bitcoin bull runs typically occur quickly, followed by quick recoveries. Crypto trader Mags has referred to the “psychology of a market cycle” to indicate Bitcoin’s transition into the “belief phase,” marked by growing investor confidence.

This analysis is to the point and describes what we have seen in Bitcoin’s price action recently. Big names like Cathie Woods and Jack Dorsey are getting into Bitcoin in a big way. And as more and more institutional investors get into this asset class, it’s a rising tide that should buoy all investors (including the following two names).

Ethereum (ETH-USD)

ether (ETH-USD) has completed its latest “Dencun” update to reduce data fees and improve network efficiency alongside proto-Dank sharding and lower Layer 2 transactions. Pending SEC decisions on spot Ethereum ETFs could impact Ethereum’s performance, potentially pushing this token toward its high of $4,878 (and possibly even higher).

Coinbases (NASDAQ:COIN) current research report Highlights Ether underperforms Bitcoin in 2024, but confirms its solid long-term outlook. Despite a 29% increase year-to-date (less than Bitcoin’s 50%), the market has recognized Ethereum’s potential upside. Factors such as Ethereum’s limited supply and dominance in decentralized finance (DeFi) contribute to its positive development.

The launch of Retik Finance integrates DeFi into traditional finance, thereby influencing Ethereum’s DeFi dominance. Market expectations, especially from JP Morgan (NYSE:JPM), are also optimistic as the investment bank is seeing excellent growth in 2024.

Solana (SOL-USD)

Solana (SOL USD) is leading the innovation race in the crypto sector. This is mainly due to the incredibly high transaction speeds and extremely low fees of this network. For developers working on NFTs or looking to conduct small transactions on the blockchain, such a speed and cost structure is necessary for this sector to expand.

Solana’s token price has risen sharply like the other tokens on this list. After finding support around $138, this token’s rally surprised many and outperformed other leading tokens, including Bitcoin and Ethereum. We will have to see if this continues, but if Solana can continue to consolidate above these levels, it is quite possible that new resistance levels will become support on the way up.

During the memecoin rush, Solana demonstrated its speed and set a record 1,504 daily average transactions per second (TPS) on April 6th. Compared to Ethereum, it is 46 times faster and over 5 times faster Polygon (MATIC USD). However, network congestion issues have arisen, raising questions about future TPS improvements.

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.