Cryptocurrency Reaches Fresh Peak with Bitcoin; Explore Two Budget-Friendly Cryptocurrency Options as Alternatives.
On December 17, Bitcoin (BTC decreased by -3.08%) reached an unprecedented peak above $108,000. Despite its unpredictable nature, Bitcoin has recorded an impressive 50% increase since the election, and a mind-blowing 148% rise for the whole year.
However, some specialists claim that Bitcoin may be overheating. Given that Bitcoin has seen a staggering 500% increase over the past two years, there's a suspicion that the market might be inflating some of the expectations surrounding Bitcoin, particularly those that were fuelled by the incoming Trump administration.
In light of this, let me suggest two cost-effective alternatives that could possibly prove to be hidden treasures.
Cardano
Just as Bitcoin, Cardano (ADA decreased by -5.41%) has experienced a strong surge post-election. Nevertheless, it has only recorded a 74% increase for the year. This lag behind Bitcoin's extraordinary pace leads me to believe that there's still room for improvement in Cardano's value.
What's more, Cardano lags behind its all-time high, currently trading around the $1 mark. This puts Cardano 66% below its record high of $3.10. Such a substantial discount is enticing.
Another powerful advantage for Cardano is the prospect of an ETF launch sometime in 2025. According to some analysts, this could trigger a 3x increase in price, allowing Cardano to swiftly recapture its 2021 all-time high. Some even envision Cardano reaching a price of $5.
However, it's important to note that a Cardano ETF is highly unlikely. And Cardano seems to be losing ground in the race for Layer 1 blockchains. The likes of Ethereum (CRYPTO: ETH) lead the field, while a host of competitors hot on their heels. Currently, Cardano might rank only third or fourth in terms of Layer 1 blockchain performance.
Despite this, my opinion is that Cardano, priced at only a dollar, could be the "bargain Bin Ethereum." This is due to Cardano's triumph over Ethereum this year, as well as the potential for an ETF-fueled upswing in 2025.
Litecoin
Similarly to Cardano, Litecoin (LTC decreased by -1.79%) is currently trading well below its all-time high. With a current price of $116, Litecoin is a considerable 72% lower than its all-time high of $413. This could signal trouble, or it could represent an uncanny opportunity to purchase an overlooked, undervalued crypto at an unbelievable rate.
Until recently, it could have been viewed as a warning signal. For the better part of the previous two years, Litecoin seemed to be out of favor with investors. The much-anticipated halving event for Litecoin in 2023 failed to deliver, and Litecoin has consistently lagged behind other top cryptocurrencies.
However, there's a silver lining. In mid-December, Litecoin all of a sudden became the buzzword in the crypto market. According to ETF experts at Bloomberg, it's now the favorite for spot ETF approval by the SEC. Should there be a grand debut for an ETF in early 2025, it's highly probable that it will be Litecoin leading the charge. This influx of fresh capital could drastically drive up its value.
Additionally, Litecoin is considered more straightforward than other cryptocurrencies. Its name is a dead giveaway – it's the "light" version of Bitcoin. If you grasp Bitcoin, then Litecoin should be similarly simple to grasp. This is because it was developed using the same building blocks as Bitcoin.
Litecoin is mined, exactly like Bitcoin. It undergoes halving every four years, just like Bitcoin. Since it's based on the same code as Bitcoin, it follows a similar trajectory. If Cardano is recognized as "the poor man's Ethereum," then you could say that Litecoin is the "poor man's Bitcoin."
The good news is that Litecoin has been officially declared as not being a security, which should eliminate any potential regulatory risks. For cost-conscious investors, this is a very alluring selling point.
So, what defines an "affordable" cryptocurrency?
Although I've adopted a somewhat limited approach to defining an "affordable" cryptocurrency, my primary thinking was to identify the Top 25 cryptocurrencies based on market cap ranking, and then zero in on those that had suffered a significant fall from their all-time highs.
This approach can help in pinpointing a few potential prospects, such as Cardano and Litecoin. However, it's important to remember that bargain basement bins can hide both gems and decaying assets, so thorough research is always imperative before making any investment decisions.
In the world of finance, individuals looking for alternative investing opportunities might consider Cardano and Litecoin, two cryptocurrencies that have seen significant decreases from their all-time highs. While Bitcoin has experienced a spectacular 500% increase over the past two years, Cardano and Litecoin have only recorded 74% and 72% increases respectively, indicating potential for further growth. This makes them attractive options for those seeking cost-effective alternatives in the finance market.
