In the wake of a global economic downturn and rising geopolitical tensions, cryptocurrencies are rebounding, emerging as some of the top-performing assets of 2024. Standout performers include Nvidia and other tech stocks dominating the US stock exchange.
As of July 22, Binance Coin (BNB) leads the crypto pack with an impressive return of 89.6% for the year, followed closely by Bitcoin at 51.0% and Ethereum at 47.5%.
Comparatively, top traditional assets are also rebounding, with the Nasdaq 100 index up 19.8%, gold rising 16.4%, and oil gaining 13.4%.
This year has seen significant regulatory support for cryptocurrencies, with the US Securities and Exchange Commission (SEC) approving the first spot Bitcoin exchange-traded fund (ETF) in January, followed by a spot Ethereum ETF on May 24, which enables institutional investors to participate more actively in the market.
As a result, cryptocurrency market capitalization surged to approximately $2.5 trillion by July 3, up from around $1 trillion in mid-October of the previous year.
Market experts indicate that the approval of the spot Ethereum ETF may trigger a rally in other altcoins, as cited by industry analysts.
BNB’S EXPANDING ROLE
Launched in 2017, BNB was initially developed as a utility token for discounted trading fees on the Binance exchange. It has since expanded its utility across various applications, from transaction fees to payment solutions on multiple platforms.
Investors value BNB, especially when the crypto market is active, given its role in new token launches and rewards under Binance’s Launchpool program.
OUTLOOK FOR THE SECOND HALF OF 2024
Looking ahead, promising cryptocurrencies include NEAR Protocol, which focuses on artificial intelligence applications, and Render, which utilizes distributed graphics processing on the Ethereum blockchain.
Market analysts anticipate that several cryptocurrencies might earn spot ETF endorsements, notably Solana, Ripple (XRP), and Litecoin. The SEC’s recent decisions support the potential for broader ETF approvals.
Ripple is confident in its legal position regarding XRP, while Litecoin remains notable for its longstanding presence and robust transaction mechanisms.
Dogecoin, known for its meme origins, also ranks highly in market capitalization and holds significant potential for future investments.
CAUTIOUS OPTIMISM
Despite the encouraging trends, experts like the head of digital assets at a major asset management company caution against expecting a proliferation of crypto ETFs. While Bitcoin and Ethereum dominate market cap, many other assets lack comparable track records and liquidity.
BlackRock’s industry positioning has reignited interest in spot Bitcoin ETFs, leading to discussions about broader acceptance of digital assets. Recent regulatory signals suggest a gradual shift toward a more crypto-friendly environment.
Bitcoin prices saw a significant rise in July, closing above $67,700, indicating renewed investor interest. Meanwhile, Ripple was the top performer among major cryptocurrencies, reflecting market optimism as institutional interest grows.
Investors are closely watching for potential regulatory shifts that could favor the crypto market, especially with upcoming elections potentially influencing policy direction.
