For crypto investors, this might come as a surprise: Approximately one-quarter of all cryptocurrencies ranked in the top 50 by market capitalization are trading for less than $1. And that's despite the backdrop of a roaring crypto bull market powered by Bitcoin (CRYPTO: BTC), which is hitting new all-time highs.
While there might seem to be a relatively large pool of potential cryptocurrencies that could hit the $1 mark by the end of this year, there are only two that I think have a realistic shot of doing so: Cardano (CRYPTO: ADA) and XRP (CRYPTO: XRP). Both are up more than 25% over the past 30 days, and both rank among the top 10 cryptos by market cap. Let's take a closer look.
Cardano
This was supposed to be the year for Cardano, which is a rival to Ethereum (CRYPTO: ETH) in the Layer-1 blockchain market. Essentially, anything Ethereum can offer on its core blockchain, Cardano also can. That includes everything from non-fungible tokens (NFTs) and blockchain gaming to Web3 applications and decentralized finance (DeFi).
Buoyed by recent successes in the DeFi market, Cardano was supposed to make a major leap forward in 2024. To some extent, that has been true. Network activity on the Cardano blockchain is showing signs of growth, and key DeFi metrics such as total value locked (TVL) are showing signs of improvement.
The problem, quite simply, is that Cardano had previously acquired the reputation of a blockchain where nothing much ever happens. That's due in part to its slow, steady, and academic approach to blockchain development, where every new update, tweak, or upgrade seems to take forever. As a result, Cardano is not on the radar of many institutional investors and has never traded higher than $3.
But guess what? Slow and steady might win the race. Over the past 30 days, Cardano is up 50% and is now up 25% year to date. At its current price of $0.71, it won't take much to send Cardano past the $1 mark.
XRP
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XRP (formerly known as Ripple) seems to be another crypto on the verge of a major breakout. Currently trading around $0.63, it has been trading under $1 for much of the past two years.
The crypto briefly hit $0.95 last summer but continues to be dogged by concerns over a still-unresolved Securities and Exchange Commission lawsuit that was filed in 2020. As long as there is no resolution on this, XRP will likely be unable to cross $1.
But what if there is some sort of resolution in 2024, as many are now expecting? That could be enough to send the crypto soaring. After all, it has a large and loyal investor base ("the XRP Army") that is ready to support it. A full lifting of the dark clouds currently hovering over it could open up the door to more exciting prospects.
For example, some investors are now speculating that XRP might get its own spot exchange-traded fund (ETF), much like the new spot Bitcoin ETFs. That sounds like a long shot to me, but if it does happen, XRP shouldn't have any problem surpassing $1.
Which cryptos didn't make the cut?
As noted above, a whopping one-quarter of all cryptocurrencies ranked in the top 50 by market cap is trading below $1 right now. So which cryptocurrencies are not on my list? Two of them, Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB), are meme coins with no realistic shot at hitting $1. Dogecoin has existed for more than a decade, and has never hit this price level, so why should 2024 be any different?
And then there's a hodgepodge of everything else. There are a couple of third-tier Layer-1 blockchains with no real chance of ever challenging leader Ethereum. There are also crypto tokens trying to leverage the hype around concepts like Web3 and artificial intelligence, a frog-themed meme coin, and a few holdovers from the previous crypto bull market.
That's why I've focused on Cardano and XRP. While neither might be a household name to the average investor, they are both well-known to longtime crypto investors. More importantly, both provide real-world utility. At one time or another, both were supposed to soar in value, but have never fulfilled their early promise.
While there's obviously significant risk in investing in any crypto trading for less than $1, Cardano and XRP are the ones that I feel most comfortable recommending to other investors.