Key Insights
The crypto market is recovering from a major market dip that began in late February, which has been concerning for investors.
The five most promising cryptocurrencies include Bitcoin, Ethereum, Solana, XRP, and Cardano.
All of these cryptocurrencies have the highest amount of institutional interest among many others.
Most of these also have pending filings for ETFs from major asset managers in the US.
As the fourth month of the year unfolds, the crypto market is recovering from a major market dip that began in late February.
While this dip caused a correction on Bitcoin to below $75,000 and has been concerning for investors, it does create a window of opportunity for investors.
For example, Bitcoin is back above the $85,000 zone at the time of writing and is already up by around $10,000 since the start of April.
Indicators are now pointing toward a possible return on institutional investment, and the correction could be over soon if it isn't already.
Here are five major cryptocurrencies that look particularly promising, especially as the market finds its footing once again.
Bitcoin (BTC)
This cryptocurrency is by far the most dominant across the market, and its performance determines that of the others by a wide margin.
Bitcoin’s position as the first digital asset makes it the ultimate hedge against economic instability and inflation.
The recent developments in the US also show Bitcoin’s growing legitimacy in the crypto space.
Very recently, Bitcoin was announced as part of the US’ strategic crypto reserve plans, along with other major cryptocurrencies.
The increased accessibility from this move could lead to a huge spike in the price of the cryptocurrency.
More importantly, with large amounts of Bitcoin being locked away from circulation across the market, the cryptocurrency is likely to become more resilient in terms of market volatility.
Bitcoin has been one of the first to rebound and could possibly reach new all-time highs within the year.
Ethereum (ETH)
Ethereum has become far more than just another cryptocurrency. It now powers most of the decentralized applications and is by far the largest DeFi platform, according to DeFiLlama.
This makes Ethereum important to the DeFi ecosystem itself, and rebounds are much more likely for the cryptocurrency.
The Ethereum network is also in the middle of a major upgrade known as the Pectra upgrade.
Said upgrade is aimed at improving the network's scalability and energy consumption.
This could make Ethereum more appealing to more users and developers alike.
Ethereum has also been included in the US government’s Strategic reserve plans, making it one of the biggest assets to watch during and after this correction.
3. Solana (SOL)
This cryptocurrency has carved out a name for itself so far, with fast transaction speeds and low fees.
It has become an attractive platform for developers building DeFi apps, NFTs, and even games.
Solana is another cryptocurrency with a planned addition to the US’ strategic crypto reserve.
Even though there isn’t a Solana ETF yet, several asset managers already have filings on the US Securities and Exchange’s desk.
4. XRP
The native token of the Ripple network has stood out for its use case in international money transfers.
It is fast and scalable, both of which are qualities that make it great for large cross-border payments.
Despite its ongoing regulatory spat with the US SEC, XRP has continued to build real-world utility, and the fact that it is now part of the US government’s strategic crypto reserve plans means that it has a bright future.
Grayscale’s most recent filing for an XRP ETF in the US could also open the floodgates to more institutional capital if approved.
The regulatory developments in the ongoing case will continue to influence the price of the cryptocurrency.
However, its main value proposition in international finance remains one of its biggest use cases.
If the clarity continues to improve, XRP could be ready for a major comeback soon.
Cardano (ADA)
Cardano is popular in the crypto space for its research-driven approach to blockchain technology.
Cardano has been steadily expanding its ecosystem of DApps and partnerships, not to mention ongoing upgrades that promise to boost its interoperability and performance.
Cardano has also been included in the US strategic crypto reserve plans in a show of long-term promise.
While Cardano is like the others and an ETF hasn't been approved yet, the growing developer activity and its community engagement show that there is much room for fundamental growth.