Crypto exchange Coinbase has unveiled a new metric dubbed the h-index to address distortions in tracking onchain adoption caused by airdrop-related activities.
Coinbase, a publicly traded U.S.-based cryptocurrency exchange, known for its development of Base, a layer-2 solution for Ethereum, has introduced a new metric to provide a more accurate measure of blockchain network adoption. This new metric aims to mitigate distortions caused by airdrop-related activities and Sybil attacks.
In a research report on Friday, Coinbase noted that investments in blockchain infrastructure have led to an excess of blockspace, making onchain transactions cheaper and fueling networks with a new wave of decentralized applications. However, this change also made it challenging for analysts to track ecosystem adoption as more applications launch.
Traditional network metrics such as total transactions or daily active addresses can be skewed by Sybil attacks and airdrop activities, Coinbase says. To address this issue, Coinbase proposes a new metric called the h-index, which balances the depth and breadth of onchain adoption. The h-index counts the number of addresses receiving transactions from at least that same number of unique sending addresses.
“In other words, an h-index of 100 means that 100 different receiving addresses had received transactions from at least 100 unique sending addresses over a given time frame.”
Coinbase
According to Coinbase’s findings, when h-index applied, Ethereum and Base networks exhibited the most widespread user activity for the week ending Jun 6, followed by Arbitrum and Polygon.
H-index for blockchain networks | Source: Coinbase
While acknowledging the metric’s imperfections, Coinbase believes the h-index can shed “new perspectives on comparative chain adoption by mitigating the outsized influences of Sybils and measuring growth more broadly.”
The crypto exchange noted though that challenges still remain, including differences in blockchain execution environments, which can affect transaction formats and data interpretation. Additionally, the influence of exchange or other smart contract wallets “could also distort numbers,” Coinbase admits.
Sybil attacks are a well-known type of network attack in the crypto industry where a single entity creates multiple fake identities or nodes to gain control over a network or influence its operation. This sort of activity can manipulate network metrics and data by creating numerous false accounts or addresses to inflate transaction volumes or user activity artificially to distort the perception of network usage and adoption.
Three Roaring Kitty-inspired memecoins marked triple-digit price increases over the past week.
Despite a slight decline in the overall memecoin market cap, CoinGecko data showes that GME, KITTY, and ROAR whipsawed over 100%.
The three tokens have seemingly benefitted from associations with GameStop trader Keith Gill, although no official affiliation exists with the original memestock champion. On Friday, GME, KITTY, and ROAR are up 445%, 817%, and 107%, respectively, over the past week.
GME shares an identical ticker with video game retail company GameStop and KITTY is styled after Gill’s Roaring Kitty online alias. Both tokens are Solana-based, while ROAR lives on Ethereum, crypto’s second-largest blockchain.
Roaring Kitty comeback
Gill became famous for marshaling support behind GameStop (GME) in 2021. At the time, the video game retailer struggled to maintain relevance during a short squeeze as its stock price was far below its all-time highs.
The investor vanished from the public eye till this year, returning on social media with a series of posts on X. As some cat-themed memecoins boomed on Gill’s comeback, the GME investor disclosed his GME stock and options positions on Reddit.
Roaring Kitty, DeepFuckingValue has updated his GameStop, $GME position.
At press time, Gill’s GameStop portfolio was valued at over 0 million despite a 28% fall in GameStop’s stock price on the day. The company posted a sharp 29% sales decline in its first-quarter earnings report.
If GME stock rises to per share, the value of Gill’s position could hit billion. Also, Gill is hosting a YouTube Live stream for the first time in three years. Crypto.news noted over 78,000 people in the waiting room ahead of the event, which is scheduled for 4 PM UTC.
With Bitcoin and Ethereum surging, what does the Ripple price prediction indicate about XRP’s ability to catch up with these market leaders?
Ripple (XRP) has been in the spotlight for quite some time, but not necessarily for the reasons its fans would hope. Since the start of the year, XRP has traded flat, showing disappointing performance.
While Bitcoin (BTC) and Ethereum (ETH) have surged by 69% year to date (YTD), and other altcoins have gained more than 100%, Ripple’s value has declined by nearly 15%, currently sitting at .53.
XRP 1-year price chart | Source: CoinMarketCap
Despite this lackluster performance, Ripple has made notable strides in its business operations.
Recently, Ripple announced a new partnership with Clear Junction to facilitate instant and secure GBP and EUR-denominated payouts for Ripple’s payment customers.
The partnership expands Ripple’s reach and capabilities in the financial world. Ripple’s official website also hinted at more customer additions by the end of the year through this partnership, which could potentially enhance its market position.
Adding to this momentum, Ripple CEO Brad Garlinghouse recently appeared on Fox Business, advocating for the approval of multiple altcoin exchange-traded funds (ETFs).
He argued that just as investors diversify their portfolios with commodities like gold and silver, they should also have the option to diversify with various crypto assets.
Garlinghouse, recalling the days when XRP was the second-largest digital asset by market capitalization, confidently stated that the approval of an XRP ETF was “inevitable.”
Despite these promising developments, the looming legal battle with the U.S. Securities and Exchange Commission (SEC) continues to cast a shadow over XRP.
With all eyes on the upcoming court decision, the big question remains: where is XRP headed next? Will the legal clarity bring a much-needed boost to its price, or will the uncertainties continue to weigh it down?
Let’s delve deeper and understand Ripple’s price prediction in light of these developments.
The ongoing saga of Ripple vs the SEC
The legal saga between Ripple and the SEC has been a rollercoaster of twists and turns, each development sparking waves of speculation in the crypto world.
This high-stakes battle began in December 2020 when the SEC accused Ripple of raising over .3 billion through an unregistered securities offering by selling XRP.
The Ripple vs. SEC case took a dramatic turn in July 2023 when U.S. District Judge Analisa Torres delivered a landmark ruling. She determined that Ripple’s sales of XRP to institutional investors qualified as securities under federal law, but sales to the general public did not.
Judge Torres applied the Howey Test, a legal standard from a 1946 Supreme Court case, to make her decision. She found that institutional investors understood Ripple’s pitch as a speculative investment, fitting the criteria of an investment contract.
However, she ruled that programmatic sales to retail investors on exchanges did not meet this standard because those buyers were unaware of Ripple’s statements about XRP’s potential profits.
The decision from Judge Torres was hailed as a major win for the crypto industry, as it potentially limits the SEC’s jurisdiction over cryptos traded on public exchanges.
Recently, the case has heated up again. Ripple filed a reply letter supporting its motion to seal data related to the SEC’s motion for judgment and remedies.
The SEC argued that this financial and securities sales information was crucial, as it constituted “judicial documents” central to the arguments about remedies and could influence the court’s decision.
Ripple, however, contends that these historical contracts are irrelevant because they have amended their XRP sales procedures. The company highlighted that it no longer sells XRP through over-the-counter transactions, which were classified as “institutional sales” by the court.
Instead, Ripple now sells XRP to customers for use with its on-demand liquidity (ODL) product, which lacks the controversial terms of the previous over-the-counter contracts, such as discounts for sophisticated counterparties.
The final phase of the lawsuit saw both parties submitting necessary documents and briefs to magistrates. The court’s decision could come at any time, adding another layer of suspense to this already dramatic legal battle.
Judge Netburn, who has been nominated to serve as a federal judge in the U.S. District Court for the Southern District of New York, will handle the latest developments. Her decisions on these motions could shape the future of XRP and set important precedents for the crypto industry.
What’s next for Ripple?
As the legal battle with the SEC continues, Ripple is stepping up its game, not just in the courtroom but also in the market and political arenas.
One of the most exciting developments is Ripple’s plan to launch a USD-backed stablecoin, which will be fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents.
According to Ripple, the stablecoin market is projected to exceed .8 trillion by 2028, up from around 2 billion today. Ripple aims to tap into this growing demand. The stablecoin will initially be available on the XRP Ledger (XRPL) and Ethereum blockchains.
1/ The stablecoin market is booming – around 0B today, and projected to soar past .8T by 2028. There’s a clear demand for trust, stability, and utility.
That’s why later this year we’re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.…
Over time, Ripple also plans to expand to other blockchains and decentralized finance (DeFi) protocols, driving more use cases, liquidity, and opportunities for developers and users within the XRPL community and beyond.
In addition to product innovations, Ripple is also actively engaged in shaping the political arena in the U.S.
The company recently announced a million contribution to Fairshake, a federal super PAC dedicated to supporting pro-crypto, pro-innovation political candidates in the 2024 elections.
Ripple’s contribution is in addition to the million it contributed in 2023 and is part of an industry-wide effort to promote policies that support financial innovation in the U.S., aiming to challenge the SEC’s regulatory hiccups and advocate for a more favorable environment for crypto businesses.
As Brad Garlinghouse mentioned, Ripple and the crypto industry cannot remain silent while regulators impede innovation. The upcoming elections are seen as crucial for the future of crypto in the U.S., and Ripple aims to ensure that the right candidates who support crypto are elected.
Ripple price prediction: will Ripple price rise?
Recent analyses suggest that XRP might be on the brink of a massive price surge fueled by technical patterns and legal clarity.
DustyBC, a prominent crypto analyst, shared a chart predicting a potential “God candle” for XRP, which could push its price above . This Ripple coin price prediction represents a staggering 4,000% price gain.
DustyBC’s analysis is rooted in a symmetrical triangle pattern, a technical formation indicating that XRP has been consolidating since 2017, with a breakout possibly on the horizon.
Another crypto enthusiast, Javon Marks, shared an even more optimistic outlook. Marks speculates that XRP could exceed 0 if it follows a full logarithmic growth path.
With a Full Logarithmic Follow through, prices of $XRP (Ripple) may be more than poised for 0+.
Prices of Ripple went on an over +108,000% run in the 2017-2018 run and has since setup and broke out of its largest resisting structure EVER!
Marks’s Ripple crypto price prediction is based on Ripple’s historical performance, where XRP witnessed over a 108,000% run during the 2017-2018 bull market.
He believes a similar, if not more substantial, rally could be on the horizon, pointing to a potential 33,030% increase from current levels.
Another crypto analyst argued that Ripple’s ongoing three-year battle with the SEC is the reason for XRP’s underperformance during the last bull run.
A lot of people hate $XRP for one reason or another.
Realistically, we know as investors that when a lot of people ‘feel’ a certain way, there is probably value in the asset they feel that way against.
With that being said, $XRP is in a unique position.
However, this prolonged consolidation period, combined with its historical ability to surge dramatically (10,000% in 60 days and 61,000% in 280 days in 2017), suggests potential for future gains.
The prolonged consolidation phase, according to technical analysts, often leads to substantial expansion, making XRP a compelling asset to watch, he added.
However, not all Ripple crypto price predictions are this bullish. Wallet Investor’s Ripple price prediction for 2024 forecasts XRP to be at .579 and .478 by 2025.
On the other hand, DigitalCoinPrice offers a more optimistic Ripple price prediction for 2025, placing XRP at .29. They also predict XRP to reach .88 by 2030, reflecting a long-term bullish outlook for the Ripple price prediction for 2030.
Always keep in mind that these XRP forecasts and Ripple projections are based on current market trends, technical analysis, and analyst opinions. They can, and often do, go wrong.
Hence, never make these XRP price predictions a basis for your investments, and always conduct your own research. Keep the golden rule of investing in mind: never invest more than you can afford to lose.
FAQs
Is Ripple a good investment?
Ripple could be considered a good investment due to its innovative technology. Many analysts believe that Ripple is the future of digital payments and cross-border transactions. However, it’s important to conduct your own research and consider the risks before investing.
Will Ripple price rise or fall?
Predicting whether Ripple’s expected price will rise or fall depends on various factors, including market trends, legal developments, and overall adoption of the technology. While many experts have a positive Ripple prognosis, it’s essential to stay updated with the latest news and market analysis.
How high can Ripple go?
The potential for how high can Ripple go varies among analysts. Some believe it could see heavy gains, especially if regulatory clarity is achieved and adoption increases. However, exact future prices are uncertain and depend on multiple market factors.
Can Ripple reach 0?
Reaching 0 is ambitious for Ripple but not impossible if strong market adoption and favorable regulatory outcomes occur. Hence, it’s crucial to manage expectations and invest wisely.
How to buy Ripple (XRP)?
To buy Ripple (XRP), you can use popular cryptocurrency exchanges like Binance, Coinbase, or Kraken. Simply create an account, complete the verification process, and deposit funds to purchase XRP. Make sure to use secure platforms and follow best practices for safety.
Should I invest in Ripple?
Whether to invest in Ripple depends on your financial goals and risk tolerance. If you believe in its technology and future prospects, it might be worth considering. However, always diversify your investments and never invest more than you can afford to lose. Conduct thorough research before making any decision
StarkWare says its plan to expand its scaling technology to the Bitcoin network won’t result in forking Starknet or making a new token.
StarkWare, the developer behind Starknet, clarified that its primary focus remains on scaling Ethereum through the use of validity rollups and ZK proofs even despite its efforts to bring scalability solutions to the Bitcoin ecosystem.
We know that you are as excited as we are to see what Starknet over Bitcoin means!
So, let’s clarify things 🦸
Starknet will continue focusing on scaling Ethereum like we’ve done since launching its first Validity Rollup. We will notably continue our work in the ZK field as… pic.twitter.com/lBG07gKy17
In an X post on Jun. 7, the blockchain developer valued at billion highlighted its commitment to enhancing the efficiency of Ethereum scaling in 2024, saying the firm “will strive to scale Ethereum in the most efficient way possible.”
“Our goal, consistent since the initiation of Starknet, is to develop STARK proofs to enhance the scalability and integrity of blockchains that we believe in.”
StarkWare
As a result, Starknet aims to serve both the Ethereum and Bitcoin communities without creating a new layer or exclusive token for Bitcoin. Instead, Starknet will act as an execution layer that simultaneously scales both Bitcoin and Ethereum.
“StarkWare won’t fork Starknet to create a new layer on Bitcoin or establish an exclusive token for the Bitcoin ecosystem. Instead, Starknet will (try to) act as an execution layer that scales both Bitcoin and Ethereum simultaneously. Its security, governance, and ecosystem will all be driven by the STRK token.”
StarkWare
StarkWare’s initiative to bring ZK scaling to Bitcoin comes as part of a broader strategy to address the scalability challenges faced by major blockchains. With the new expansion, the Starknet developer aims to leverage its technology from the Ethereum network to make a “single layer that settles on both Bitcoin and Ethereum.”
The firm anticipates completing the development of the solution within six months following the potential Bitcoin upgrade known as OP_CAT, which seeks to integrate smart contracts into the Bitcoin ecosystem.
ProShares, a prominent issuer of exchange-traded funds (ETFs), has filed a proposal to list and trade spot Ethereum (ETH) ETF shares on the New York Stock Exchange (NYSE).
According to the filing with the United States Securities Exchange Commission (SEC), the ProShares Ethereum ETF will use Coinbase Custody Trust Company for ETH custody.
The asset manager noted that the firm and its associated parties will not engage in activities related to Ethereum staking.
Crypto.news reported that potential spot Ethereum ETF issuers have revised their 19b-4 and S-1 filings to exclude staking components. These revisions aim to address the SEC’s position on staking for spot Ethereum ETFs.
However, the approval of these ETFs without staking capabilities may discourage investors who seek additional yield from staking rewards.
Typically, individuals who buy, hold, and stake ETH can earn staking rewards, resulting in extra yield. Excluding the staking feature means spot Ethereum ETFs will not offer these additional benefits to investors.
The SEC has 45 days, extendable to 90 days, from the notice publication date to respond to the filing. Since ProShares’ spot ETH ETF has been filed on June 6, 2024, approval could be expected by late July 2024.
This proposal follows ProShares’ recent introduction of two Ethereum-linked ETFs: ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD), targeting 2x and -2x daily ETH returns, respectively.
Both ETFs are set to be listed on the NYSE on Friday, June 7.
ProShares is renowned for launching the first Bitcoin-linked ETF in 2021, the Bitcoin Strategy ETF (BITO), which invests in futures contracts. However, ProShares has not pursued a spot Bitcoin (BTC) ETF, unlike some major asset management firms like Blackrock, Grayscale, and Fidelity.
It is crucial to note that the spot Ethereum ETFs require approval for both filings to be officially traded in the market. The approval in May was solely for the 19b-4.
Analysts anticipate that the final approval for these ETFs might occur in July 2024.
These products are expected to provide investors with new levels of flexibility and strategy, enabling more precise navigation of the volatile crypto market.
Meanwhile, the Bitcoin ETF has attracted .4 billion after noting consecutive inflows for the last 15 days, as reported by Senior Bloomberg ETF analyst Eric Balchunas in a recent X post.
Wormhole’s governance token, W, has experienced a significant surge of 12% following the introduction of a new staking feature.
At the time of writing, the W token was exchanging hands at .7113, up 12% in the last 24 hours. In the same timeframe, the crypto asset also witnessed a trading volume of 5 million, per data from CoinMarketCap. Its market cap stood at .25 billion.
W 24-hour price chart | Source: CoinMarketCap
Wormhole (W) is a cross-chain messaging protocol that facilitates the transfer of assets and data across different blockchain networks.
In a June 6 X post, the Wormhole team revealed the launch of the “Stake for Governance” feature for W token holders. The new functionality allows W token holders to stake their tokens to participate in governance decisions. This helps in promoting a more decentralized and community-driven management structure.
Stake For Governance is now live for W token holders!
This is your opportunity to participate in the governance and impact the future direction of the Wormhole DAO and platform.
Dan Reecer, co-founder of Wormhole Foundation, also took to X on the same day to provide additional details on the significance of this launch. He explained that of the staking feature marks the first step in the W staking roadmap, introducing the industry’s first multichain governance system, MultiGov.
W token holders can now delegate their tokens either to themselves or to a chosen delegate, enabling a seamless multichain experience for voting and delegating in any DAO.
Reecer also noted that MultiGov, developed in collaboration with Tally and ScopeLift, allows users to delegate and vote from any connected Layer 2 network and, soon, Solana.
Tally is a governance platform that helps DAOs manage their proposals and voting. On the other hand, ScopeLift is a development team that focuses on building tools for decentralized governance.
Unlike other protocols, such as Uniswap, which hosts its governance on the Ethereum mainnet, MultiGov offers a more convenient and cost-effective solution for users across different chains. The innovation aims to provide a truly multichain experience and chain abstraction.
For those looking to stake for governance, users can head to the Tally Governance Portal. There, they can transfer their W tokens from Solana to a supported EVM chain, such as Ethereum, Arbitrum, Optimism, or Base.
Once transferred, users can choose a delegate and stake their W tokens for governance.
Additionally, Wormhole has implemented a daily transfer limit of 100 million W tokens from Solana (SOL) to EVM chains to ensure security.
The next steps for Wormhole governance include completing and auditing the Solana integration into MultiGov. After that, the acceptance of proposals and the beginning of voting will follow.
Wormhole’s efforts to expand the reach of the W token are evident in its recent listing on Robinhood, a major cryptocurrency exchange. The W token is now available to trade with European customers on the platform. Additionally, investment firm Multicoin Capital revealed in an April 3 blog post that it had co-led a 5 million funding round in Wormhole last year.
According to analysts at Invezz, the Wormhole token has surged from .513 on May 14 to over .718, breaking past key resistance at .70.
Despite trading above the 50-period and 25-period moving averages, it has formed a rising broadening wedge, a bearish pattern. This puts the token at risk of a reversal down to .60, the analysts noted.
Meanwhile, a trader known as Degen_Maximum sees the potential for the W token to double in value in the short term, adding an optimistic twist to its recent performance.
💸 #Wormhole ( $W ): Potential 2x growth on the horizon💸
I’ve been scouting out promising projects recently listed on #Binance, and Wormhole (W) is currently standing out as a project with immense potential for strong growth in the near future
Unstoppable Domains and Blockchain.com have announced a partnership to launch and promote a DNS-enabled web3 domain under the “.blockchain” extension.
According to a statement shared with crypto.news, the two companies have joined forces to register the .blockchain web3 domain with the Internet Corporation for Assigned Names and Numbers (ICANN), the global authority overseeing IP addresses and domain names.
ICANN is set to implement new generic top-level domains (gTLDs) by 2026.
The application process begins with the launch of ICANN’s Applicant’s Guidebook next year. As such, the firms have a year to prepare for the new domain’s application.
“The agreement between Blockchain.com and Unstoppable Domains is focused on preparing for this upcoming ICANN application,” a spokesperson told crypto.news.
Upon approval by ICANN, the .blockchain domain would join existing top-level domains (TLD) like .com and .net, providing a dedicated space for blockchain-related businesses.
“Once accredited by ICANN, the .blockchain gTLD will serve as both a web2 domain and a web3 domain […] It will integrate web3 and traditional web2 browsing capabilities, enhance accessibility, and allow users to utilize “.blockchain” domains seamlessly across both ecosystems. For Web2 capabilities, this would include email, website resolution, etc.,” the spokesperson added.
Founded in 2018, Unstoppable Domains has been leveraging blockchain technology to provide users with control over their digital identities. It plans to offer specialized domain names for individuals, brands, and companies, expanding the use of blockchain-based domains.
Unstoppable Domains’ collaboration with Blockchain.com aims to bridge the gap between web2 and web3. similar to Ethereum Name Service’s recent integration of browser-compatible “.box” web domains.
The .box domain is recognized as an ICANN-approved top-level domain and is the first on-chain gTLD included in the ENS manager app alongside .eth. Domains hosted on .box are searchable and indexable on major browsers such as Google Chrome and Safari, making them compatible with popular email services as well.
The rise of web3 domain names
Web3 domains are new web extensions, similar to .com or .in, launched as smart contracts on public blockchains such as Ethereum, Polygon, and Solana.
Extensions such as .sol or .crypto can replace lengthy wallet addresses for cryptocurrency transactions. They can also be used for website hosting and single sign-on methods for various web3 applications.
The appeal of web3 domain names lies in their simplicity. Users can send funds to an easy-to-remember wallet address like “jack.eth” instead of a 42-character crypto wallet address, making it simpler for consumers to interact with a named address rather than a complex string of characters.
“.blockchain” and other web3 domains take the form of unique, non-fungible tokens (NFT). They’re hosted on a public, immutable blockchain, and so can’t be altered or deleted; they also provide users full ownership of their data and can serve as a user’s digital identity,” the spokesperson added.
Currently, users are purchasing popular domain names through these platforms, anticipating that corporations will soon register their respective brands.
Healthcare tech developer Semler Scientific has announced an additional purchase of 247 BTC for million in cash.
Santa Clara-based healthcare tech firm Semler Scientific has acquired an additional 247 BTC for million in cash as part of its ongoing strategy to hedge against inflation risks.
As per a press release on Jun. 7, the acquisition brings Semler Scientific’s total Bitcoin reserves to 828 BTC, purchased at an aggregate cost of million. Commenting on the purchase, Semler Scientific chief executive Doug Murphy-Chutorian highlighted the firm’s commitment to Bitcoin as a “compelling investment and a reliable store of value.”
“We will continue to pursue our strategy of purchasing Bitcoins with cash.”
Doug Murphy-Chutorian
The latest transaction follows a substantial purchase just a week prior, where Semler Scientific acquired 581 BTC for million, indicating an average price of approximately ,850 per coin. Semler Scientific chairman Eric Semler emphasized Bitcoin’s potential as a scarce, finite asset that serves as a reasonable hedge against inflation and a safe haven amid global instability.
“We also believe its digital, architectural resilience makes it preferable to gold, which has a market value of approximately 10 times that of Bitcoin.”
Eric Semler
With this purchase, Semler Scientific now ranks 20th among public companies holding Bitcoin on their balance sheets, according to BitcoinTreasuries.NET. The firm surpasses crypto mining company Argo Blockchain, which holds 11 BTC, but falls behind Chinese software company Meitu, which holds 940.9 BTC.
Want to know what are the best coins to invest for beginners? Read our guide to reputable cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and more.
Dipping your toes into cryptocurrency can feel overwhelming, especially with so many options out there. However, experts suggest that starting with well-established and reputable digital assets can make the process smoother.
To help you get started, we have compiled a beginner-friendly guide highlighting five of the best cryptocurrencies for beginners to invest in, considering their stability, market value, and potential for growth.
Table of Contents
Bitcoin (BTC)
Bitcoin is the oldest and most valuable cryptocurrency on the market, making it a solid choice for beginners. As of June 4, 2024, Bitcoin’s market capitalization exceeded .35 trillion, a figure representing over half of the entire crypto market’s value.
First-time crypto investors should consider Bitcoin as an investment option because of the following reasons:
Widespread availability: Bitcoin is available on nearly all crypto exchanges and many conventional brokerage platforms, making it a near-perfect gateway cryptocurrency for beginners.
Growing acceptance: More businesses around the world are accepting BTC for transactions, and it’s even recognized as legal tender in countries like El Salvador and the Central African Republic (CAR).
Strong growth potential: Recent developments, such as the launch of spot Bitcoin exchange-traded funds (ETFs), have driven Bitcoin prices higher, even leading to it hitting a new all-time high price of ,750 on March 14. Some experts have even predicted that the price of Bitcoin could reach over a million dollars by 2030.
Bitcoin’s established presence and continuous growth make it an excellent starting point for new crypto investors. While the price of one Bitcoin might be a bit high for the average investor, it is possible to buy smaller portions of it for much lower prices.
Ethereum (ETH)
Although having a much more modest market capitalization compared to Bitcoin, Ethereum is a powerhouse among altcoins and a similarly great option for crypto beginners.
Technically known as Ether, this cryptocurrency is the second largest by market cap and has a significant role in both the decentralized finance (defi) and decentralized applications (dapps) ecosystems.
For those wondering which crypto is best for beginners, here are a few reasons why Ethereum should be a strong contender for your first crypto investment:
Defi dominance: As stated previously, Ethereum is the backbone for many decentralized finance protocols and applications, which drives a high demand for ETH. These applications rely on Ethereum’s blockchain to operate, making ETH a crucial part of the dapp and defi spaces.
High total value locked (TVL): As of the time of this writing, Ethereum holds the largest portion of the total value locked (TVL) in various networks, indicating its widespread use and trust. TVL refers to the cumulative value of all the crypto assets deposited in various defi protocols. Per DappRadar, Ethereum’s current TVL stands at .01 billion, a figure that is several times more than those of its five biggest competitors combined. A high TVL often means that more people are using a platform, which should bode well for the value of ETH going forward.
Smart contracts: Ethereum also supports smart contracts, which are self-executing codes with terms written directly into them. This feature allows for a broad range of decentralized applications and has made Ethereum one of the most popular dapp-hosting blockchains.
Continuous development: The Ethereum network is continually being improved, with the recent upgrade to Ethereum 2.0 aiming to enhance scalability and security.
It means Ethereum should be able to keep up with technological progress in the blockchain industry, which should keep the value of ETH at a steady level.
With the above in mind, settling on ETH for a first crypto investment should not be a daunting choice to make.
BNB Coin
BNB Coin, the native cryptocurrency of the Binance ecosystem, is another choice when buying crypto for beginners.
It may not have the same level of reputation and name recognition as the first two coins on our list, but it has managed to quietly establish itself as an important part of the broader crypto market.
Here’s why you should consider BNB among the best cryptocurrency for beginners in 2024:
Stable performance: Stability is key for any investment, and despite the crypto market’s volatility, BNB has shown consistent growth over the years. It was initially priced at .15 during its 2017 ICO and has seen significant appreciation since then. At the time of writing, BNB was priced at more than 5 and had a market cap of .3 billion, making it the third-largest non-stablecoin cryptocurrency in the market.
Controlled supply: With a maximum supply of 200 million and a current circulating supply of around 156 million, the value of BNB should benefit from this capped supply because it will create scarcity, which, over time, could help drive up the coin’s value.
Utility token: BNB offers transaction fee discounts on the Binance Exchange and is used across multiple blockchains within the Binance ecosystem. It facilitates trading on the Binance exchange, allowing users who hold BNB to enjoy discounted trading fees. Additionally, it can be used as collateral for margin trading, allowing users to leverage their positions and potentially enhance their returns.
Beyond trading, BNB serves as the primary currency for Binance’s decentralized exchange, Binance DEX. Users can trade cryptocurrencies in a non-custodial manner, maintaining complete control over their assets.
BNB is also integrated into Binance’s decentralized lending platform, Binance Lending, where users can lend and borrow cryptocurrencies while earning interest. Furthermore, BNB can be used to pay transaction fees on the Binance Smart Chain (BSC), a high-performance blockchain developed by Binance.
All these use cases in an ecosystem as dynamic and expansive as Binance’s should help safeguard BNB’s value in the long term, arguably making it one of the best crypto to buy now for beginners.
Solana (SOL)
Another coin that could potentially be among the best crypto investments for beginners is Solana (SOL). Its price performance over the last year has generally been positive, with the coin’s value increasing by more than 660% in that time, per data from CoinGecko.
Solana one-year price chart | Source: CoinGecko
The Solana blockchain also boasts several features that should ensure SOL’s growing reputation in the crypto market and establish it further as one of the largest coins by capitalization:
Speed and cost efficiency: Solana uses a unique proof-of-history (PoH) mechanism, enabling it to process up to 50,000 transactions per second at a fraction of the cost of Ethereum.
Scalability: Solana’s high throughput and low fees also make it an attractive platform for dapp developers and users alike.
Growing ecosystem: Solana has a thriving ecosystem of dapps, NFT platforms, and Web3 games, further enhancing its appeal. It is currently home to some of the most popular meme coins on the market, including Bonk (BONK) and Dogwifhat (WIF).
Environmental impact: Solana’s PoH and proof-of-stake (PoS) models are less energy-intensive than traditional proof-of-work (PoW) systems used by the likes of Bitcoin.
In the current world, where people are big on environmental protection, cryptocurrencies with reduced ecological footprints may be viewed more favorably, and it would make sense for first-time crypto investors to buy such coins.
Ripple (XRP)
Anyone looking for the best crypto to buy as a beginner should not overlook Ripple (XRP). The coin has been around since 2012 when Ripple created it to facilitate fast and cost-effective cross-border transactions.
It has steadily risen to become one of the most prominent digital assets in the crypto sector, with a current market valuation of billion.
Priced at .5252, XRP is currently the most affordable crypto for beginners on our list. The current price is a whopping 84.6% discount on XRP’s all-time high price of .40 and could serve to nudge prospective investors towards it.
XRP One-year price chart | Source: CoinGecko
Other factors that make XRP one of the best cryptos for beginners include:
Fast transactions: XRP can handle up to 1,500 transactions per second, making it one of the fastest cryptocurrencies available.
Low cost: XRP transactions are also cost-effective and do not require high energy consumption, unlike Bitcoin.
Financial partnerships: Ripple has partnerships with major financial institutions like MoneyGram and American Express, a factor that has boosted its credibility and usage.
Affordability: Trading at a lower price point, XRP is accessible to beginners with limited capital. This allows for potentially higher returns with a lower initial investment.
Final thoughts
When starting your journey into cryptocurrency investment, it’s essential to choose assets that offer stability, utility, and potential for growth.
While not an exhaustive list, Bitcoin, Ethereum, BNB Coin, Solana, and XRP each provide unique advantages that can make them ideal choices for beginners.
However, always remember to do your own research and consider your risk tolerance before investing in any cryptocurrency. Despite their relative stability, the coins mentioned above are also prone to periods of volatility, which could wipe out your investment.
FAQs
What are the best places to buy crypto for beginners?
There are several platforms where beginners can buy cryptocurrencies, such as Coinbase, Binance, and Kraken. These platforms are user-friendly and offer a variety of cryptocurrencies. However, you must remember that investing in crypto carries risk. Always do your own research and consider seeking advice from a financial advisor.
What is the best way to invest in cryptocurrency for beginners?
The best way to invest in cryptocurrency for beginners is often buying and holding a diversified portfolio of cryptocurrencies for the long term, regardless of short-term price fluctuations. However, it’s important to only invest what you can afford to lose and to do thorough research or seek professional advice before investing. Remember, the value of investments can go down as well as up.
