The hot cryptocurrency market is strong and buying investments are approaching all-time highs again
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The long-term outlook for cryptocurrencies remains good. Things are also looking good in the short term as the sector did not suffer for long after the recent halving. Investors remain optimistic, as shown by the current cryptocurrency Market cap of $2.6 trillion. That’s not far from the all-time high of $2.8 trillion reached at the end of 2021.
The largest cryptocurrencies appear to be best positioned at the moment. Historically, the cryptocurrency market follows the market leader. There is no reason to believe that this will change any time soon. Fortunately, the market leader is strong again and points to plenty of opportunities in the crypto space.
Investors should be aware that many useless projects continue to be launched in this space. They should also understand that they should not be distracted by these projects and at the same time understand that cryptocurrencies are part of the new financial system. Investing in solid projects in the crypto world is the same as investing in solid companies on the stock market. Let’s look at some options.
Solana (SOL-USD)
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Solana (SOL USD) Is probably the next cryptocurrency to consider for a spot ETF. This is the opinion of Brian Kelly, CEO of BKCM Digital Asset Fund. However, this is not a given, with several prominent names wondering whether it might take much longer. These skeptics point out that Solana is far behind Bitcoin and Ethereum in terms of regulatory acceptance.
A proposed Solana spot ETF is not the only potential positive catalyst for Solana. Rather, it is just another reason to believe that the project will continue to increase in value. Solana has managed to grow more than 770% in the last 12 months without spot ETF approval.
The projects The strong development is due to ultra-fast transaction times. Transactions on its network are 46 times faster than those on Ethereum and five times faster than those on Polygon. Solana will continue to disrupt the leaders, and when an ETF is launched, it will rise again.
Bitcoin (BTC USD)
Bitcoin (BTC USD) barely suffered after the last halving. Prices briefly fell below $60,000 but are now approaching $70,000 again. Fears of a deep correction appear to have been exaggerated and investors are buying the dips.
Bitcoin benefits from the approval of spot ETFs. This approval is a strong reason to believe in the further adoption and integration of Bitcoin and cryptocurrencies into the larger financial system worldwide. This in turn is a good reason to believe in the general enthusiasm surrounding Bitcoin. The The SEC approved 11 spot Bitcoin ETFs in early 2024. It is clear that many of the world’s most important and influential financial institutions recognize the inherent value of Bitcoin.
If companies like BlackRock are willing to invest in Bitcoin, it is a strong signal to retail investors who may still be on the safe side. It seems clear to them that Bitcoin is here to stay, and given the bullish predictions for Bitcoin price to hit $1 million in the future, investors are sure to remain optimistic.
Dogecoin (DOGE-USD)
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Dogecoin (DOGE-USD) has staged a strong rally since late February and continues to thrive. In fact, the original meme coin is up more than 127% in the last 12 months.
By now, every cryptocurrency investor is aware that Dogecoin offers no benefits whatsoever. I’ve accepted the fact that it doesn’t matter. Dogecoin is something unique in the cryptocurrency space and remains a worthwhile investment despite the lack of use cases.
I should note that Dogecoin is not completely useless. Only limited use cases have been developed, including as a means of payment GameStop (NYSE:GME) and to buy Tesla (NASDAQ:TSLA). However, these use cases were developed primarily for promotional purposes. The fact is that Dogecoin hasn’t really evolved since its inception. It was never intended to be anything more than a joke, but it still turned into something very worthwhile.
Its continued success is a good example of why investors should reject the bearish attitude towards cryptocurrencies in general.
At the time of publication, Alex Sirois did not hold (either 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.