Disclaimer: Cryptocurrencies are an inherently volatile asset class, and investments can carry substantial risks. This information is for educational purposes only and should not be construed as financial advice. Always do your own research and conduct due diligence before investing in crypto projects.
From the resignation of Binance’s CEO to the EU’s push for crypto regulation, the crypto market has seen its ups and downs this year, keeping investors on their toes. Amidst these shifts, a handful of cryptocurrencies stood the test of time, securing their positions among the top cryptocurrencies in the market. These were some of the best cryptocurrencies for investment in 2023, and they are expected to maintain their elite spot in the times ahead as well. Their historic performances have been noteworthy, trading volumes have displayed user demand, and most importantly, market hype (capable of making or breaking a crypto) has been consistent surrounding them.
Let’s take a look at these top cryptocurrencies, since they show all signs to be equally relevant in the coming times as well!
Top 5 cryptocurrencies by volume, performance, and hype
Without further ado, let’s get detailed insights into our top 5 cryptocurrencies, chosen on the basis of the aforementioned factors.
1. Bitcoin
The first to appear in the list of our top 5 cryptocurrencies is obvious, as Bitcoin is even the world’s first and most popular cryptocurrency, launched in 2009 by a person or group under the pseudonym Satoshi Nakamoto. It is a decentralized cryptocurrency that works on blockchain technology. The Bitcoin transactions on the respective blockchain network are recorded and verified on a public ledger, ensuring security and transparency. This work is done by Bitcoin ‘miners’, who add new blocks with transactions and records to the blockchain, and get rewarded with new bitcoins in return.
The reason Bitcoin is a popular cryptocurrency is its feature that allows direct peer-to-peer transactions, eliminating the need for centralized intermediaries like banks. The market capitalization of Bitcoin is the highest among all crypto; at roughly $836 billion at the time of writing.
However, the supply of this popular cryptocurrency is limited to 21 million bitcoins. The supply is managed by a unique event called ‘Bitcoin halving’. After every 210,000 blocks mined, roughly in 4 years, the reward for Bitcoin mining gets cut in half. This mechanism effectively reduces the rate at which new bitcoins enter circulation.
Bitcoin’s performance:
In 2023 alone, Bitcoin witnessed a price increase of more than 150% fresh out of the crypto winter of 2022, establishing itself as one of the top cryptocurrencies in 2023. At the start of 2023, it was trading around $16,000-$16,500, but by December, it had skyrocketed above the $40,000 mark.
Bitcoin’s trading volume:
Bitcoin’s trading volume in 2023 has been quite a spectacle, marked by both soaring highs and notable slumps. As one of the best crypto to invest in, it ranks #2 on top cryptocurrencies by trading volume at the time of writing.
Bitcoin’s hype:
Investors consider Bitcoin the best crypto to invest in due to its potential as a store of value, ease of accessibility for beginners, and consistent solid performance. It is considered a store of value due to its limited supply and increasing adoption. It is a good entry point for beginners due to its ease of use and established infrastructure.
The Bitcoin community is eagerly awaiting positive events in the future too, with the next Bitcoin halving event scheduled to occur in April 2024. This event is expected to create bullish conditions for Bitcoin. A team of Bloomberg analysts have also released a research note revising their ETF estimates, predicting a faster approval for spot Bitcoin ETFs in the US in 2024,
2. Ethereum
While Bitcoin may be the reigning king of cryptocurrencies, Ethereum (ETH) occupies a unique and vibrant space among the top cryptocurrencies. With a market cap of around $268 billion at the end of 2023, it ranks second on many ‘best cryptocurrencies for investment’ lists.
The cryptocurrency is based on a decentralized open-source blockchain system that allows developers to create and deploy smart contracts (self-executing agreements based on conditions set by counterparties in a transaction). It paves the way for innovative applications ranging from DeFi (decentralized finance) to NFTs (non-fungible tokens). Additionally, thousands of apps and altcoins are powered by the Ethereum blockchain, making it the backbone of numerous crypto projects. Thus, given the utility of the Ethereum blockchain, ETH ranks among the best cryptocurrencies for investment.
Ethereum’s performance:
At the beginning of 2023, ETH was valued around $1200. Since then, it has grown over 80% and crossed the $2200 mark. Although it saw a few dips below $1600, the overall trend was positive.
Ethereum’s trading volume:
Ethereum’s trading volume in 2023 has mirrored the broader cryptocurrency market, characterized by significant fluctuations. Still, it occupies the #3 position among the top cryptocurrencies by trading volume at the time of writing.
Ethereum’s hype:
Ethereum holds the crown among the altcoins by offering a unique and versatile platform for innovation. The diverse functionalities, cutting-edge technology, and potential for innovation on Ethereum are the key drivers behind its persistent hype.
To maintain ETH’s position as one of the best crypto to invest in, the early 2024 Ethereum Dencun upgrade will play a key role. The new upgrade aims to lower fees on proof of stake Ethereum, enable new features for bridges and staking pools, and restrict the usage of self-destruct operations for smart contracts.
3. Tether USDT
The third among our top 5 cryptocurrencies is the Tether (USDT) token, the most popular stablecoin till date. It is pegged 1:1 to the US dollar and is fully backed by cash and cash equivalents. It boasts around $91 billion market capitalization by the end of 2023, ranking #3 among top cryptocurrencies by market cap. While it is not a utility token in the traditional sense, it has witnessed a high level of adoption as an asset to protect investors from the crypto market’s volatility, and to take the usage of the versatile US dollar to the masses.
USDT’s performance:
Despite minuscule shifts, Tether has maintained its peg to the US dollar throughout 2023, proving its resistance to price fluctuations in the crypto market.
USDT’s trading volume:
USDT ranks #1 among the top cryptocurrencies by daily trading volume, surpassing Bitcoin. Its high trading volume is owing to the ease of use that usually comes from trading in fiat currency.
\USDT’s hype:
Tether is popular in the crypto market as a hedging crypto. Being pegged to the USD, it is protected from the fluctuations and volatility of the crypto market. This property makes USDT a haven for crypto investors during periods of high volatility.
4. Solana
Solana is a high-performance blockchain platform boasting fast transaction speed and low transaction fees. It utilizes a unique hybrid consensus mechanism combining Proof-of-History and Proof-of-Stake to provide a highly scalable and secure network. Its native cryptocurrency, SOL, is a comparatively newer cryptocurrency, but still, it is one of the best crypto to invest in.
Solana’s performance:
Solana is, without a doubt, one of the top cryptocurrency in terms of growth this year. At the beginning of 2023, it was trading at less than $10, but it is about to close the year above $100. It has shown an impressive Year-on-year (YoY) growth of around 907%.
Solana’s trading volume:
Solana ranks #4 among top cryptocurrencies in terms of daily trading volume. Its trading volume increased significantly in the second half of the year, ranging in billions.
Solana’s hype:
SOL has garnered sufficient investor interest following its upward trend during the year. Its success can be attributed to the collective efforts of its thriving community, cheaper transaction fees, and quicker speeds than most older networks.
5. Dogecoin
Dogecoin, often nicknamed ‘DOGE’ and symbolized by the Shiba Inu dog, is a meme-inspired cryptocurrency created in 2013 by Billy Markus and Jackson Palmer. While initially conceived as a lighthearted parody of Bitcoin, Dogecoin has attracted a dedicated community and even achieved significant value in the crypto market. It ranks 10th among the top cryptocurrencies by market capitalization and boasts a market cap of roughly $13 billion by the end of 2023.
Dogecoin’s performance:
Dogecoin’s performance this year was a rollercoaster ride filled with soaring highs and dramatic dips. However, the overall trend in its price was positive, with a 21% YoY growth.
Dogecoin’s trading volume:
At the time of writing, Dogecoin ranks #25 among top cryptocurrencies in terms of daily trading volume. Moreover, it witnessed fluctuations in its daily trading volume levels throughout the year.
Dogeocoin’s hype:
Dogecoin is a prominent example of the power of hype and the volatility in the crypto market; after all, the hype surrounding the memecoin is the reason for it being part of our top 5 cryptocurrencies line up. It became a popular cryptocurrency despite having zero utility, and the reason behind its popularity and ensuing rally was the hype created by celebrity endorsements and social media.
So, this was our list of the best cryptocurrencies for investment on the basis of performance, volume, and hype. It will be exciting to see how these top cryptocurrencies perform moving forward next year!
Invest in crypto in 2024
2023 was a pivotal year for cryptocurrencies. With nations worldwide racing to adapt and regulate cryptos, the global spotlight on the digital revolution has never been brighter. Accounting for anticipated ETF approvals and increased institutional interest, the future is largely optimistic. This is high time to peruse our list of the best crypto to invest in, and get going!
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