Since the election of Donald Trump, the market for cryptocurrencies went into euphoria over the possibility of the new president adopting policies that favor the digital currency industry. However, even though almost the entire crypto market rose in unison, practically only the Bitcoin (BTC) managed to renew its historic highs, reaching US$99,645 on November 22 (36% above the previous peak, in March).
The other relevant cryptocurrencies (known as altcoins) have seen significant increases since November 5, election day, but are still far from returning to their historic highs.
Given this scenario, investors are beginning to question which other assets could be good opportunities and still have potential for gains given this new level of Bitcoin, above US$90 thousand.
The resignation of Gary Gensler, current chairman of the Securities and Exchange Commission (SEC), caused some altcoins to rise. Because Gensler is a critic of cryptocurrencies, his departure from the regulatory body makes investors believe that from 2025 more decisions will be taken in favor of the industry.
READ MORE: Cryptocurrencies: what are they and how to invest?
Now investors await a movement known as “rotation”, in which the flow would stop going to Bitcoin, which has already risen a lot, to migrate to altcoins. However, in a market with thousands of assets, the focus is on trying to understand which ones would have the greatest potential for gains.
According to Gabriel Randi, analyst at Bitcoin Marketit is common to see this rotation movement in bullish cycles. In other words, when Bitcoin interrupts a period of strong growth, investors look for other opportunities within the crypto sector.
The expectation for altcoins, it is worth remembering, is based on market behavior patterns seen in the past. And any analysis must always consider the risk that an altcoin will simply collapse, losing all of its market value (as happened with FTX in 2022).
“Normally the rotation in the crypto market is exactly as we are seeing: Bitcoin reaches highs, at some point it stabilizes and there is an accumulation. We don’t know if it will now be US$100,000, US$90,000 or less, but that’s what usually happens. And that’s when money starts flowing into altcoins,” explains Randi.
The expert states that it is common to see Ether (ETH) gain strength when the rotation phase begins. In the next stage of the process, other cryptocurrencies with large market value also rise. In the last phase, the movement is practically widespread, and small cryptos also appreciate in value.
O InvestNews spoke to experts to evaluate cryptocurrencies that have good projects behind them and could benefit from this rotation movement. Check out the main ones below:
Ether (ETH)
What is it: The second largest cryptocurrency by market value, Ether is the asset of the Ethereum network, the most important on the market. Ethereum is the most used as a basis for running smart contracts and decentralized applications (it is on its network that ownership of NFTs is normally transferred, for example).
READ MORE: Towards US$ 100,000: after the weekend drop, Bitcoin is once again approaching its historic mark
Variation since November 5th: +43.5%, to US$3,447 (29.6% below the historic high).
Why it may rise: According to Jorge Souto, portfolio manager at TC Digital Assetsfor a bullish cycle in the cryptocurrency market to occur, Ether also needs to rise to its highs. This is because this cryptocurrency is much more important than Bitcoin for the sector. Almost everything in crypto has some connection to Ethereum, explains the expert. This is because this is an asset widely used for the development of other platforms and solutions, as in the case of the Decentralized Finance (DeFi) market – in which you lend cryptos to the market in exchange for interest, for example, without the intermediation of a bank. .
For us to have a very strong crypto bull market, it would be ideal for ETH to perform well”, summarizes Souto
Solana (SUN)
What is it: Solana is also a blockchain focused on decentralized applications, which is why it has a strong dispute with Ethereum. Your project seeks to be faster and more scalable than your main competitor. In recent years, it has been the basis for the creation of several memecoins – functionless cryptocurrencies, made for fun, but which sometimes end up gaining ground (as happened with Dogecoin).
Variation since November 5th: +48.6%, at R$2.35 (10% below the historic high)
Why it may rise: Currently, the SOL cryptocurrency is also close to its all-time high, which has already attracted more investors, but the assessment is that the network still has a lot of potential for growth. “One of the big recent advantages is that a competing network called SUI presented its first significant failure, which could lead investors who were betting on it to turn to Solana”, says Beto Fernandes, analyst at Foxbit.
Furthermore, its proposal to facilitate the creation of new cryptocurrencies with low costs, fast networks and great scalability has attracted several investors who see the project as a good opportunity for growth.
XRP (XRP)
What is it: XRP is the native cryptocurrency of Ripple, a company specializing in cross-border payment solutions. Focused on speed and low costs, the currency is widely used by banks and financial institutions.
Variation since November 5th: +185%, to US$1.44 (62.8% below the historic high)
Why it may rise: Ripple has been the target of several lawsuits by American regulators in recent years, and, as a result, Gensler’s departure from the SEC has encouraged investors that the scenario for the company may now be less turbulent.
Additionally, there are rumors that the next cryptocurrency to gain an exchange-traded fund (ETF) in the US could be XRP, in 2025, which would attract institutional investors to the asset.
Stacks (STX)
What is it: The Stacks network operates within the Bitcoin blockchain, which is why it is called a second layer network, or layer 2. Its protocol allows the execution of smart contracts and the creation of decentralized applications (dApps) – a typical Ethereum solution, but within of the Bitcoin network.
Variation since November 5th: 44.7%, at US$2.12 (45% below the historic high)
Why it may rise: Because it operates on the Bitcoin blockchain, there is an expectation that Stacks can surf the price rise, explains Fernandes, from Foxbit. He reinforces that the project has behaved quite consistently.
“Recently, the protocol announced the launch of an sBTC token, which will have a 1:1 parity with Bitcoin, which would facilitate its use in DeFi applications,” says the analyst.
Celestia (TIA)
What is it: The Celestia network is a “modular platform”, as the programmers say. Translated: it brings a structure capable of making any other blockchain network, through which any other crypto circulates, more agile and faster.
Variation since November 5th: 87.6%, US$7.97 (61.7% below the all-time high)
Why it may rise: For Souto, the modularization narrative should continue in the market, with more and more blockchain networks adopting systems like this. “Celestia can be a very important player in this segment, as it also makes the functioning of the blockchain cheaper”, he explains.
