The overall cryptocurrency market is trading predominantly in the green zone, led by Bitcoin (BTC), which has reached a new all-time high, while altcoins are also recovering.
Looking ahead, most market consensus assumes that the bull run will likely continue through 2024, supported by factors such as Bitcoin’s impending halving and the potential launch of a spot exchange-traded fund (ETF) on the Ethereum.
These elements could trigger an influx of capital into the market, with several assets positioned to potentially experience significant growth in their capitalization multiple times.
In this regard, Finbold has identified the following three cryptocurrencies that could see a five-fold increase in market capitalization in 2024.
Polka dot (DOT)
Polkadot (DOT) is known for its sharding technology that addresses scalability issues plaguing established blockchains like Ethereum (ETH). This enables faster transactions and the creation of application-specific blockchains, fostering a more diverse and efficient ecosystem.
DOT is currently aiming for the $15 mark after rising more than 35% in the last 30 days. At the same time, the token commands a market capitalization of $13.53 billion.
Indeed, DOT has the potential for a surge in its market capitalization based on factors such as the ongoing bull run in the overall landscape, network development, and institutional interest. For example, data from CoinShares shows that DOT has seen higher inflows than its competitors since the beginning of the year, outpacing major cryptocurrencies like XRP. This suggests that institutions may be recognizing the potential of assets like DOT that investors may have overlooked.
Also, second Token terminal, Polkadot appears undervalued based on its price-to-sales (P/S) ratio. Polkadot’s lower P/S ratio indicates potential undervaluation relative to historical averages, signaling potential upside in the future.
Shirt (LINK)
Chainlink (LINK) operates as a decentralized oracle network, facilitating secure and reliable data feeds for smart contracts. This ability allows smart contracts to interact with real-world data, unlocking a multitude of possibilities in areas such as DeFi and supply chain management.
Given this foundation, LINK has the potential to see a five-fold increase in market capitalization.
In particular, Chainlink data oracles have the potential to drive huge interest in the asset. For example, BlackRock Inc. (NYSE: BLK), the world’s largest investment management company, has recognized the significant value of tokenization to the market. This suggests that data oracles capable of processing off-chain information from the on-chain space could benefit from this perceived value.
Additionally, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) revenue has increased 180% over the past two months, driven by growing adoption of the multichain bridging platform. Commission revenue for CCIP increased from approximately $61,000 in total for January to more than $171,000 in the first two weeks of March alone.
With a current market capitalization of $11.47, fivefold growth could push its value to nearly $60 million. This sentiment is supported by the growing adoption of Chainlink, as evidenced by CCIP revenue. Currently, LINK changes hands at $19.30 with the token targeting the $20 resistance zone.
Solana (SOL)
Solana (SOL) continues to grow as one of the best performing cryptocurrencies, aiming for a new all-time high.
Marketed as a faster and cheaper alternative to Ethereum, the blockchain began gaining traction in November last year, an event fueled by various factors: developers appreciated its speed and cost-efficiency, major brands like Visa (NYSE: V) have expressed interest in its blockchain, and meme coin traders have been attracted to new projects like Bonk (BONK) launched on the platform.
While Solana is trading below its previous all-time high of nearly $260, the decentralized finance token has seen its market capitalization rise to a new high of nearly $90 billion amid the current rally.
Furthermore, with growing interest in the Saga smartphone, Solana appears poised for a sustained rally that could potentially push its market capitalization to nearly $450 billion by 2024.
At the time of writing, the asset is trading at $196, with 24-hour gains of more than 15%.
Overall, although the mentioned cryptocurrencies present the potential for an increase in their market capitalization, they remain susceptible to market fluctuations.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
