The cryptocurrency market has been surging recently with Bitcoin (CRYPTO: BTC) leading the way by setting a new all-time high of over $88,000. This rally has ignited excitement across the board, driving up prices and drawing fresh interest in crypto.
While Bitcoin has captured most of the headlines, some other cryptocurrencies have the potential for even greater upside, as they still have room to catch up to Bitcoin’s gains.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
For those looking to position their portfolios for the next wave of crypto growth, here are three digital coins worth considering. These assets have shown significant potential and may offer some of the most compelling opportunities in today’s market.
The first choice is Ethereum (CRYPTO: ETH), which remains the second-most valuable cryptocurrency by market cap and the backbone of decentralized finance (DeFi).
Despite its prominence, Ethereum has lagged behind the market’s broader rally for most of 2024. At the end of October, it was only up a measly 7% year to date. However, it has gained strong momentum recently, jumping nearly 33% since the start of November.
Yet, even with these recent gains, Ethereum’s price still sits 30% below its all-time high, suggesting plenty of upside potential. Beyond just price, its fundamentals remain strong.
As the primary platform for DeFi protocols, Ethereum benefits from a steady influx of value and growing interest in tokenization, an innovation that allows traditional assets like real estate and stocks to be represented digitally on the blockchain.
These factors create a solid foundation for Ethereum’s potential to not only reclaim its previous highs but to also reach new records as adoption deepens and this bull cycle progresses.
Next is Aave (CRYPTO: AAVE), one of the most prominent players in the DeFi ecosystem. Known as a decentralized lending and borrowing platform, Aave functions as a “digital bank” where users can lend their assets to earn yield or borrow against them.
Deployed across multiple blockchains, Aave’s cross-chain compatibility and established reputation have made it a crucial part of DeFi’s infrastructure.
Aave’s token has recently traded around $190, well below its all-time high of $572 reached in 2021. As more capital flows into the crypto ecosystem, it stands to benefit directly from the renewed interest in decentralized finance.
And with the Federal Reserve pivoting to lower interest rates, DeFi protocols like Aave, which offer yields higher than traditional financial products, are poised to become even more attractive to investors seeking better returns in a low-rate environment.
Another catalyst for Aave could be the activation of a “fee switch.” If implemented, this feature would distribute a portion of the protocol’s revenue among AAVE token holders, creating another income stream for investors and aligning token incentives with the platform’s overall growth.
Finally, we have Aerodrome (CRYPTO: AERO), a decentralized exchange (DEX) that has become one of the most productive and widely used protocols on Base, a blockchain developed by Coinbase Global. While there are plenty of other DEXs out there, it is Aerodrome’s relationship with Base and its innovative design that make it a compelling investment today.
Base has quickly gained popularity since its launch in August, but it does not have its own native token. This absence positions Aerodrome as the closest proxy for Base’s growth, giving investors indirect exposure to the blockchain’s expanding ecosystem.
Despite already achieving notable gains, Aerodrome’s token still appears to have room for growth, especially considering several promising factors.
First and foremost, the protocol continues to set new records across metrics like revenue, user activity, and trading volume.
And it is entering a deflationary phase. Initially, the protocol’s tokenomics were designed with high greenhouse gas emissions to drive growth, but now emissions are set to decline, potentially increasing the scarcity and value of the token.
So, as Base continues to grow, Aerodrome’s role as its primary liquidity hub should become even more valuable. For investors, this creates a unique opportunity to capitalize on Base’s development while also benefiting from Aerodrome’s increasing usage and declining emissions.
Before you buy stock in Ethereum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ethereum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $908,737!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
RJ Fulton has positions in Aave, Aerodrome Finance, Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has positions in and recommends Aave, Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy.
