Bitcoin has had a stellar year, surging over 150% and revitalizing the crypto market, currently trading around $42,000. Despite the focus on Bitcoin’s potential to reach $100,000 next year, there are lesser-known cryptocurrencies that might outperform it in 2024. Solana (SOL), Avalanche (AVAX), and Chainlink (LINK) stand out among these contenders.
Solana and Avalanche, both rivaling Ethereum (ETH), are Layer-1 blockchain networks, fundamental layers for various crypto applications like NFTs and blockchain-based utilities. Although Ethereum dwarfs them in market cap (8x for Solana, 18x for Avalanche), their impressive growth—Solana up 630% and Avalanche by 270% this year—has attracted notable attention, including from influential investors like Cathie Wood, who suggests Solana’s potential to surpass Ethereum.
However, Ethereum’s established position in the blockchain space due to its early innovations might be a challenge for Solana and Avalanche to overcome, limiting their growth potential.
Chainlink, hailed as the top decentralized blockchain oracle globally, stands out with its $8 billion market cap, dwarfing its competitors. With a 160% increase this year, Chainlink’s pivotal role lies in providing data to smart contracts in decentralized finance (DeFi). This data accessibility is critical for DeFi’s functionality.
The integration prospects of artificial intelligence (AI) and blockchain excite investors in Chainlink. Former Google CEO Eric Schmidt’s participation in a discussion at Chainlink’s recent conference further bolstered interest in this intersection. However, investing in Chainlink doesn’t equate to direct AI market exposure, as Chainlink isn’t an AI company and a formal integration timeline remains uncertain. Investors should be aware of this distinction when considering Chainlink.
