We’ve been writing quite a bit about Bitcoin in December. If that suggests that Bitcoin was the best performer in 2024 among the thousands of digital assets in the crypto space, it wouldn’t be an unfair suggestion.
But the rollercoaster market isn’t the only measure of performance, as we like to say. And while some altcoins have yet to keep up with Bitcoin’s price performance, there are still some who deserve a mention in terms of other indicators such as technological advancement and even adoption.
In our objective view, Bitcoin really is the only cryptocurrency that has achieved what it set out to do, and in 2024 finished on that high. But others continue to explore the boundaries of emerging technology, showcasing innovation that could redefine the digital currency landscape for many.
So, as we sift through the rubble of 2023 and peer back into the year that was, let’s take a look at some of the altcoins that have made a case for themselves in 2024.
Let’s start with the elephant in the room — Ethereum. While it’s not exactly an altcoin in the traditional sense, it’s often overshadowed by Bitcoin. The 2020 failed Flippening was the first major disappointment for ETH holders as Ether never eclipsed Bitcoin. This year, while Bitcoin broke records, Ethereum fell short of breaching its own previous all-time high.
Nevertheless, Ethereum has continued to evolve, especially after its much-anticipated transition to a proof-of-stake model in 2022. This shift has not only reduced its energy consumption but has also allowed for more iterations of decentralised applications (Dapps) and smart contracts.
The continued development of Layer 2 solutions, such as Optimism and Arbitrum, has made transactions faster and cheaper, which is music to the ears of developers and users alike. Ethereum, despite its more expensive use, is still the network attracting the best developers and the most loyal users.
However, Ethereum is still plagued by scalability issues and high gas fees during peak times. The promise of Ethereum 2.0 has been like a mirage in the desert — always just out of reach. Still, despite its flaws, Ethereum remains a cornerstone of the altcoin market, and its ability to adapt may keep it relevant for years to come.
Solana, the blockchain that made waves in 2021 for its lightning-fast transaction speeds and low fees, made a remarkable comeback in recent times.
In a world where users are increasingly impatient, Solana’s ability to process thousands of transactions per second has made it a favourite among developers and investors, especially in the decentralised finance (DeFi) space, where non-fungible tokens (NFTs) have made their home.
Perhaps Solana’s unique consensus mechanism, known as Proof of History, which allows it to achieve these speeds without sacrificing security (allegedly), will help others see that Proof of Work and Proof of Stake aren’t the only dogs in the house.
Bitcoin advocates will, however, not let you overlook the fact that Solana has experienced its fair share of outages, raising questions about its reliability.
But for as long as catchy trends like gamefi and memefi are hot, Solana looks like it has legs.
Ethereum fans will cheekily ask Cardano what happened to their “Ethereum killer” claims but the fair viewer will note that Cardano has given up on price and is now focused on academic research and peer-reviewed development.
Whether a more methodical approach to blockchain technology will result in a price gain down the line (approaching $1.50 in 2024) remains to be seen but the ecosystem has been growing quietly, with significant numbers of Dapps and partnerships in the works seeking to lure developers.
Will they come in 2025? That perhaps depends on whether or not Cardano can fix their desperate lack of utility. Translate academic rigour to practical applications and they just might get something cooking.
Polkadot wasn’t the only network that positioned themselves as the “bridge” between different blockchains. But it does appear to be the standout “interoperability” network in 2024.
Competing blockchains have unfortunately fragmented the space. Bitcoin can’t work with Ethereum, who can’t work with Tron, who can’t work with Dogecoin – but networks like Polkadot ensure that they can communicate with each other
At $40 DOT’s development of parachains – independent blockchains that can run alongside the main Polkadot chain – has attracted a diverse range of projects, from DeFi to gaming.
Yet interoperability is still an awkward execution for most projects, and users will not be keen to jump extra hoops to get something to talk to each other – why do Mac users not bother with Windows?
So until and unless developers take the role of mediators, we’re not sure Polkadot can do things on their own.
In a world where much is claimed to be decentralised but little really is, oracles were supposed to be the major improvement.
The premise of DeFi was particularly reliant on data. In a decentralised system, if everyone relies on data, how do you ensure the data is objective and accurate?
Independent providers, or oracles, were supposed to be the answer. By providing real-world data to smart contracts, Chainlink has become an essential component of many DeFi projects.
As more projects look to integrate real-world information into their smart contracts, Chainlink stands to benefit significantly. However, let’s not forget that the oracle space is becoming increasingly crowded, with competitors emerging in all directions. That should be the case, of course, as a monopoly only dilutes decentralisation.
Each rally, there is only one big winner: Bitcoin.
It is rare that altcoins in the top 5 are also there come next rally. So if you’re looking for profit, we’d advise looking away from altcoins.
But if you’re looking for something a little bit more utility, with some promise of price gains long term, there’s not much wrong in the list we’ve just put together. In a market where fortunes can be made and lost overnight, it pays to be both optimistic and cynical.