2 Cryptos I’ve Got My Eye On In the Second Half of 2024

For much of the year, Bitcoin (CRYPTO:BTC) dominated crypto headlines, and for good reason. January’s launch of new spot Bitcoin ETFs marked a turning point for the crypto industry, and Bitcoin’s climb to a new all-time high spurred investors into action in the spring.

But I think it would be a mistake to focus too much on Bitcoin right now. After all, there are many cryptocurrencies that are currently outperforming Bitcoin, including some that are among the largest cryptocurrencies in the world by market cap. Two that have caught my attention right now are Solana (CRYPTO:SOL) and Toncoin (CRYPTO:TON).

To the left

Let’s start with Solana, which is up 62% so far this year. This comes on the heels of a blockbuster performance in 2023, when Solana was up more than 900% for the year. So it’s clear that Solana has some pretty impressive upside potential. Arguably, that upside potential is even higher than Bitcoin’s.

The reason I’m most excited about Solana is that it’s currently the leading competitor to Ethereum (CRYPTO:ETH) and still ranks as the top Layer 1 blockchain network. However, Solana seems to be quickly gaining ground on Ethereum, primarily due to its blockchain’s faster transaction processing capabilities and lower fees. In short, Solana is faster and cheaper to use than Ethereum, and users and developers are realizing and taking notice.

As a result, key blockchain metrics used to measure overall performance are starting to shift in Solana’s favor. Within decentralized finance (DeFi), a space where Ethereum has dominated for years, Solana is starting to chip away at Ethereum’s market dominance. Total monthly trading on decentralized exchanges is now higher on Solana than Ethereum. Granted, much of this is due to the massive trading of meme coins on Solana, but that trend shows no signs of abating anytime soon.

Additionally, Solana could be the next major cryptocurrency to get its own spot ETF. These exchange-traded fund (ETF) products have been a big hit for both Bitcoin and Ethereum, so a spot Solana ETF could be coming soon. For example, two investment firms filed spot Solana ETF applications with the SEC this summer. While regulatory approval is currently a distant prospect, there’s still a chance Solana could see an ETF breakout by the end of 2024 or early 2025.

Image source: Getty Images.

Toncoin

You’ve probably never heard of Toncoin, despite it being the world’s ninth-largest cryptocurrency and having a market cap of around $17 billion. The “Ton” in Toncoin used to stand for “Telegram Open Network,” but after a major uproar between Telegram and the SEC in 2020, it now stands for “Open Network.” However, Toncoin is still heavily dependent on the overall success of Telegram’s encrypted messaging platform. This is a big deal, as Telegram has 950 million monthly active users worldwide.

Toncoin is up an impressive 187% for the year. Much of that is down to the success of so-called “tap to win” games. To play these games, you open the Telegram app, choose a game on the Toncoin blockchain, and then tap your phone throughout the day to earn points and rewards. In turn, these points and rewards can often be converted into cryptocurrency. Toncoin’s first blockbuster tap to win game (Notcoin) is now worth over $1 billion.

In an effort to serve The Motley Fool readers, I tried out these tap-to-win games from Toncoin and I must say I was pleasantly surprised. I can see why some of these games attract millions of users and why crypto games are starting to gain so much traction.

The value proposition for tapping is so easy to understand that even a small child can grasp it: Mindlessly tap on your phone for as long as you can and you can make money. Maybe a lot of money. This may sound cynical and cynical, but I’m actually quite optimistic about the future of crypto gaming, especially when combined with a major social media platform like Telegram.

Is it better than Bitcoin?

Of course, it’s impossible to completely forget about Bitcoin. It’s just that Bitcoin has been trading sideways or down for most of the summer, and it’s natural to look for other cryptocurrencies that could perform better in the short to medium term. Long term, I’m still on the Bitcoin bandwagon.

But Solana and Toncoin are definitely worth a closer look. Both are top 10 cryptocurrencies by market cap. Both have outperformed Bitcoin since the beginning of the year. And both are at the forefront of major trends in the crypto world. But as with any time you invest in crypto, make sure you do your due diligence beforehand, even if that means spending an entire afternoon on your phone.

Should you invest $1,000 in Solana right now?

Before buying Solana stock, consider the following:

The Motley Fool Stock Advisor analyst team has identified the 10 best stocks for investors to buy right now… and Solana wasn’t one of them. The 10 stocks that made the list could deliver tremendous returns in the years ahead.

Imagine if Nvidia had made this list on April 15, 2005… if you had invested $1,000 when we made our recommendation, you would have had $615,516!*

Stock Advisor gives investors an easy-to-follow plan for success, including portfolio-building guidance, regular updates from analysts, and two new stock picks each month. Since 2002, Stock Advisor has more than quadrupled the return of the S&P 500*.

See the 10 stocks »

*Stock Advisor returns as of August 6, 2024

Dominic Basulto has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in Bitcoin, Ethereum, and Solana and recommends them. The Motley Fool recommends TON. The Motley Fool has a disclosure policy.

Forget Bitcoin: 2 Cryptocurrencies That Caught My Eye in the Second Half of 2024 appeared first on The Motley Fool