Cryptocurrencies are on almost every growth investor’s mind today. Bitcoin (BTC-USD) reached a new all-time high, $72,000 at the time of writing. It also seems there’s a much bigger potential for the coin to keep surging in value, as the widely anticipated halving event will occur in April.
Now could be an opportune time for investors to consider some cryptocurrencies shaping the future of finance. These coins and cryptocurrencies are serious contenders for changing our economic system for good. They have growing support from institutions and are some of the favorite names of Mainstreet investors, too.
Here are three cryptocurrencies that could surge in value as large and small investors continue to adopt them.
Ethereum (ETH-USD)
Ethereum (ETH-USD) is a cryptocurrency and a platform for decentralized applications (dApps). Its native token, Ether, executes smart contracts on the Ethereum blockchain.
Institutional interest in Ethereum is also growing, highlighted by the anticipation around approving a spot at Ethereum ETF. While the effect of the Bitcoin spot ETF approval has perhaps yet to be fully felt, I believe that long term, this will significantly drive up the demand for the coin and ETH if an ETF is approved.
Analysts, including those from JPMorgan and Real Vision, have expressed a bullish outlook for Ethereum in 2024. They cite the Protodanksharding upgrade (EIP-4844) as a critical catalyst for Ethereum’s growth.
Holding a small amount of both ETH and BTC in a portfolio may be a suitable way for even risk-averse investors to benefit from the rise of these assets in the fintech space. ETH could be one of the most disruptive cryptocurrencies.
Ripple (XRP)
Ripple (XRP-USD) is designed to facilitate fast and inexpensive cross-border payments. Unlike many other cryptocurrencies, Ripple works directly with banks and financial institutions. This means that it could be more easily integrated into the existing banking networks as opposed to being a competitor, such as in the case of Bitcoin.
XRP is currently navigating potential acquisitions, business diversification and an anticipated initial public offering (IPO) in 2025. XRP’s potential to enable cross-border payments is especially appealing.
Last year may go down as one of the most important in XRP’s history, as it received a landmark ruling in July indicating that XRP is not a security. Ripple also secured key partnerships with global banks and received a license from the Monetary Authority of Singapore.
The cross-payments and SWIFT system, in general, is perhaps due for a revamp because it was clunky and outdated, released over 20 years ago. XRP’s integration would solve a key issue for businesses and governments worldwide, and is why it’s one of the key cryptocurrencies for investors to watch.
Chainlink (LINK)
Chainlink (LINK-USD) is a decentralized oracle network designed to connect smart contracts with data from the real world.
I like LINK the most out of the cryptocurrencies on this list. The reason is that I feel it could be the most undervalued and underappreciated option.
Some algorithms estimate LINK’s token price to see remarkable gains, with some predictions estimating a minimum price of $72.85 and an average price of $74.91 by 2027. Further, into the future, expectations for 2030 suggest a minimum price of $218.92.
Chainlink’s efforts to integrate Real World Assets (RWA) and traditional finance (TradFi) sectors through its Cross Chain Interoperability Protocol (CCIP) are areas where I believe that it will potentially find success.
Conceptually, LINK’s value proposition shows great promise. It could allow a homeowner to sell fractional shares in their home or a sculptor artist to digitize a piece of art and store it indefinitely on the blockchain, as well as allowing potentially millions of investors to all own a small part of it.
LINK would open many doors for investors and the fintech industry as a whole, and thus, worth paying attention to.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.