Surprising Cryptocurrencies Outperform Bitcoin in 2024

by Alice
Cryptocurrency1

Bitcoin Leads but Faces Competition

As of now, Bitcoin (CRYPTO: BTC) has increased by 45% this year. While it still outshines nearly all other major cryptocurrencies, including Ethereum (CRYPTO: ETH) with its modest 5% gain, several other cryptocurrencies are outpacing Bitcoin significantly. Some of these alternative coins have skyrocketed by 100% or more this year, indicating strong potential for growth in 2025.

Meme Coins on the Rise

Meme coins have exploded in popularity, far beyond the days when Dogecoin was the sole representative of this category. Currently, thousands of meme coins exist, with some showing staggering returns in 2024. Notably, a new cat-themed meme coin has surged nearly 15,000%, achieving a billion-dollar market cap.

When we focus on meme coins with market caps exceeding $2 billion, three stand out:

  • Dogwifhat: Up 1,495%
  • Pepe: Up 621%
  • Shiba Inu (CRYPTO: SHIB): Up 65%

Shiba Inu, a familiar name among long-term crypto investors, gained immense popularity during the previous bull market.

However, investing in meme coins comes with significant risk. These assets are known for their volatility and can either skyrocket or plummet to zero. While they may attract speculative short-term investors, their long-term viability in an investment portfolio remains questionable.

AI Tokens Gaining Traction

Another category performing well is AI crypto tokens, which are linked to the growing investment in artificial intelligence. These tokens are typically used for transactions related to AI products and services within specific blockchain networks.

Key players in this category include:

  • Bittensor (CRYPTO: TAO)
  • Artificial Superintelligence Alliance (CRYPTO: FET)

Both tokens boast valuations exceeding $3 billion and rank among the top 30 cryptocurrencies by market capitalization. Recently, Bittensor has gained more than 160% in just 30 days. It operates as a decentralized network aimed at developing, sharing, and trading AI and machine learning models. Some investors believe Bittensor could increase tenfold as investment in the AI sector continues to grow.

Emerging Ethereum Challengers

In 2023, Solana (CRYPTO: SOL) stood out as a major competitor to Ethereum. This year, however, Sui (CRYPTO: SUI) has emerged as a formidable challenger, boasting a 137% increase in value.

Several factors contribute to Sui’s rise, including:

  • The announcement that Circle’s USDC stablecoin will be available on the Sui blockchain, increasing liquidity.
  • A major upgrade to Sui’s blockchain, enhancing its transaction speed, making it faster than Solana.

These developments suggest Sui could play a significant role in gaming and decentralized finance (DeFi), prompting some analysts to label it a potential “Solana killer.”

Nevertheless, Ethereum has consistently fended off various challengers. Cryptocurrencies like Cardano and Avalanche, once seen as competitors, have dropped over 30% in 2024, highlighting the ongoing volatility in the market.

The Long-Term Outlook for Cryptocurrencies

It is evident that many cryptocurrencies can outperform Bitcoin over short periods, as seen in the performance of meme coins and AI tokens this year. However, the crucial question remains whether these cryptocurrencies can maintain their momentum in the long run.

In the next decade, would you prefer to hold Bitcoin or a meme coin? For most investors, unless they are willing to take significant risks for quick gains, investing in Bitcoin remains a more stable and potentially rewarding option, especially as it continues to lead the broader cryptocurrency market.

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