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The crypto market has been on a downward trend lately. Accordingly, many investors are starting to exit positions in some of the top altcoins. Time will tell whether this is a good move or not. But I think it’s a good time to take advantage of this recent volatility and accumulate some decent projects before the market potentially turns bullish again.
I believe this reversal could occur in late 2024 or early 2025 once interest rate cuts come along with it Bitcoin (BTC USD) Scarcity increases after the effects of the halving fully take effect. Bitcoin has historically taken months after its halving events to make big moves. I think something similar could happen again, even though the recently approved spot Bitcoin ETFs have already pushed this token to an all-time high.
If you believe that the rest of the crypto market will recover along with Bitcoin in the coming months, you should take a look at the following projects.
Ethereum (ETH-USD)
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ether (ETH-USD) was pretty disappointing this cycle. The token’s gains have rivaled those of Bitcoin, but are nowhere near as stellar as in previous cycles. This is the largest altcoin in existence and if we put all the ERC20 tokens together, Ethereum is a huge ecosystem with a market cap that could pose a challenge to Bitcoin during the peak of the altcoin season. However, Ethereum has recently failed to significantly outperform Bitcoin. I think the main reason for this is the fact that spot Ethereum ETFs are not yet traded on the open market.
Still, there is some good news on this front. Recently, Coinpedia reported that “Senior ETF analyst Eric Balchunas in conversation with Bloomberg, noted that the SEC’s comments on the S-1 filings were relatively minor, suggesting possible approval by July 2. Still, the SEC hasn’t given an exact timeline for the approval, other than saying it will happen sometime this summer, depending on issuers’ responses.” If this approval goes through, I expect hedge funds to start investing in Ethereum , like they did with Bitcoin earlier this year.
Additionally, interest rate cuts should of course lead to higher prices for Ethereum and other tokens. Institutions and retail investors would have more incentive to invest Ethereum at relatively high returns as interest rates continue to decline.
Solana (SOL-USD)
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Solana (SOL USD) will likely be the next spot ETF candidate. This is one of the few Layer 1 chains that has remained relevant in the previous cycle and this cycle as well. Notably, Solana has also proven that it can compete with Ethereum in many niche crypto sectors as well. Solana has one Significant market share in non-fungible tokens (NFTs)and it also has an ecosystem that memecoin traders find very attractive due to its low fees.
I think the biggest upside here actually comes from Ethereum. If Ethereum sees a lot of movement on its blockchain and gas (or transaction fees) starts to rise, a lot of traffic could be driven into the Solana ecosystem. We’ve seen this happen many times in the past, so I believe it makes sense to use Ethereum’s growth as a measure of Solana’s upside potential. Additionally, the team has significantly reduced network downtime, so I see Solana as an ecosystem that could drive strong growth in the future.
Render (RNDR-USD)
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Make (RNDR USD) is currently a much more speculative bet. The Render token could serve as “digital fuel” for AI models that require increasingly higher rendering performance. This crypto project allows users to sell their computing power to the blockchain, which others can purchase in bulk using RNDR tokens. In particular, Render has achieved great success with companies and individuals who don’t have the money for hardware or simply want a decentralized and affordable way to render their projects.
I think institutions could also join in en masse, considering that AI GPU prices have risen vertically. The GPUs used for rendering also become more expensive afterwards OpenAI releases its Sora text-to-video AI model and people start using it.
So, for those who believe in the strong long-term tailwinds supporting rendering activity, this is a top project to consider now.
At the time of publication, Omor Ibne Ehsan 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.