• If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally.
  • Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 
  • Investors should consider dollar-cost averaging or buying the dips to get a better entry and maximize their returns. 

With Bitcoin price moving sideways, it is the best time to reflect on the bull run so far and find potential trends that could prove useful in the next part of the cycle. 

Also read: Bitcoin bull plans thwarted by US Dollar rally

A recap of bull market so far

Bitcoin (BTC) price saw a massive spike in buying pressure at the start of 2023. But on June 14, 2023, BlackRock’s Bitcoin spot ETF filing reshaped the crypto landscape. After this event, the market went full-throttle with specific cryptocurrencies kickstarting mind-melting rallies across the board. 

To be specific, this is how I look at the crypto market bull run

  1. Last cycle favorites like Solana (SOL), Avalanche (AVAX), Injective Protocol (INJ), etc., performed exceptionally well.
  2. Newly launched altcoins, in general, performed well. But if the newly launched altcoins were part of the trending narrative, the underlying token saw a bullish run as well.  For example, the Artificial Intelligence (AI) narrative remained relevant for longer than most narratives, and tokens like Bittensor (TAO), Worldcoin (WLD), FetchAI (FET), and others took off vertically. 
  3. Meme coins also received a lot of love from the community, thanks to Solana. SOL-based meme coins outperformed most major blue chip altcoins in a short span. Altcoins like dogwifhat (WIF) and Book of Memes (BOME) were community favorites that climbed into the top echelon of meme coins and saw listings on major crypto exchanges. 
  4. Blackrock-induced narrative played well for Bitcoin and the crypto market, in general, but the investment company had more to offer when they announced their foray into the tokenized sector. This news spread like wildfire in the crypto landscape, kickstarting exponential moves among Real World Asset (RWA) tokens like Ondo (ONDO), Pendle (PENDLE), Centrifuge (CFG), and so on. 

Betting on the last cycle’s favorites from each above-mentioned sector has a higher probability of working out for investors. With that in mind, here are the top 4 altcoins to invest in 2024.

  1. SOL, simply because it will continue to be a speculative chain for meme coins.
  2. TAO & WLD in the AI sector.
  3. ONDO & PENDLE in the RWA sector. 
  4. WIF & BONK are two meme coins that could see an even bigger rally.

Read more: Dogwifhat crashes 60%, but here's why you should not buy WIF yet

Forecasts for the second half of the bull run 

One significant change that was noticed was that the Solana blockchain, which was the underdog after the 2021 bull market, not only made a massive comeback but also siphoned a huge market share from Ethereum. According to CoinGecko’s quarterly report, Ethereum’s Decentralized Exchange (DEX) volume fell by 40% and hit an all-time low of 30% in February 2024. 

At the start of the fourth quarter of 2023, Solana’s DEX market share stood at less than 6% and grew to 21% by the end of the first quarter of 2024. However, Ethereum’s market share diminished from 56% in October 2023 to 37% in March 2024. 

Chain-based Spot DEX Trading Volume Breakdown

Chain-based Spot DEX Trading Volume Breakdown

Layer 2 Solutions: The latest Dencun upgrade has slashed fees on Layer 2 solutions to near-zero levels. Hence, Ethereum’s share of DEX volume could reduce even more as Layer 2 solutions attract more capital in the coming weeks. 

So, to conclude, betting on Layer 2 solutions could help investors maximize their returns. Here are a few L2s to consider.

  1. Blast (BLAST)
  2. Base(BASE)

Also read: New altcoins crash and burn, but this altcoin shows strength

Staking Sector: Another category in the Ethereum ecosystem that could see a massive boost is the liquid staking and restaking sectors. The combined value locked for both these ecosystems is nearly $70 billion. Interestingly, the quarter-over-quarter growth of the restaking sector stands at 1068%, with its Total Value Locked (TVL) share seeing a growth of 6.8%.

Here are a few altcoins in these categories that should be on investors’ radar. 

  1. LidoDAO (LDO) 
  2. Eigen Layer (yet to launch) 

DeFi sector-based TVL

DeFi sector-based TVL

Potential out-of-the-box scenarios

With Bitcoin’s ascent slowing down, the outlook for crypto markets has become somewhat uncertain, with many expecting steep corrections. An event that could catch everyone off guard is if BTC forms a local top here and kickstarts a reversal as it did in the 2021 bull run. During the previous cycle, the pioneer crypto overcame the last cycle’s ATH of $20,000 and set up a new one at $65,000. 

While everyone was wildly bullish, Bitcoin pulled an unexpected scenario and triggered a more than 50% correction that knocked it down to $30,000. Eventually, BTC rose up and set up a new ATH at $69,000, ending the bull run. If something similar were to happen, the outlook explained above could either face invalidation or be delayed depending on where BTC finds support levels. 

A drop down to $45,000 would be devastating in the short term for day traders. However, for long-term investors and swing traders, this move would be a blessing. Either way, the best approach for investors is to use the dollar-cost average in their favorite altcoins, aka buying the dips and weaknesses in the market. 

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