Top 3 Altcoins Outperforming Bitcoin: Essential Insights You Need to Know!

Undoubtedly, Bitcoin has dominated the crypto narrative this year. With the introduction of new spot Bitcoin exchange-traded funds (ETFs) in January, Bitcoin has reached multiple record highs and is now valued just shy of $100,000. As of December 3, it has surged by 125% this year.

However, it’s not the only cryptocurrency making waves. Indeed, 12 out of the top 20 cryptocurrencies by market cap are either matching Bitcoin’s pace or exceeding its returns. Currently, I’m closely monitoring three of these: XRP (CRYPTO: XRP), Dogecoin (CRYPTO: DOGE), and Sui (CRYPTO: SUI).

1. XRP

XRP is experiencing a remarkable surge, boasting a 440% increase over the last 30 days and nearing the $3 mark. Compared to Bitcoin’s near $100,000 value, XRP’s price might seem less impressive, but remember it was trading at just $0.50 a month ago.

The positive sentiment around the pro-crypto Trump administration has greatly benefited XRP. The anticipation is that the regulatory hurdles that Ripple (the entity behind XRP) has faced could soon be resolved, potentially clearing the way for normal business operations.

Moreover, the possibility of an XRP spot ETF being launched next year is stirring excitement among investors. As recently as December 2, WisdomTree and several other firms have applied to launch an XRP ETF. Similar to the Bitcoin spot ETFs, this could trigger a significant influx of capital into XRP come 2025.

2. Dogecoin

Despite its origins as a meme-based cryptocurrency, Dogecoin deserves attention for its substantial gains, largely buoyed by the recent political developments. Over the past 30 days, Dogecoin has climbed 180%, and it’s up 366% for the year.

Elon Musk has played a significant role in this rise. His proposal to establish a Department of Government Efficiency (DOGE) has coincided with a spike in Dogecoin’s value.

Any positive developments related to DOGE (the proposed government agency) seem to impact Dogecoin’s price directly. For instance, when Senator Bernie Sanders expressed his support for DOGE’s initiative to cut government waste, Dogecoin’s price jumped almost 10%.

While there’s no formal connection between the cryptocurrency and the proposed government department, Musk’s support for Dogecoin has been evident. However, there’s no concrete plan to integrate Dogecoin into the operations of the Department of Government Efficiency. Investing in Dogecoin remains a risky endeavor.

3. Sui

Sui, a Layer 1 blockchain akin to Ethereum and Solana, was officially launched in May 2023. It distinguishes itself with exceptionally quick transaction speeds.

Previously, Solana held the title for the fastest blockchain, but Sui has now taken the lead, earning it the nickname “the next Solana.”

With a year-to-date increase of 371%, Sui is among the top-performing cryptocurrencies, even outperforming XRP. Much of this success can be attributed to the proliferation of projects on the Sui network this year.

As Sui continues to capture market share from competitors like Solana and Ethereum, it remains an attractive option for investors. Given its current market cap is just a fraction of Ethereum’s, the potential for growth is significant, especially if Sui continues to build on its success.

Looking forward to 2025, one key development to watch is the launch of a Sui-powered handheld gaming console. This could revolutionize blockchain gaming, potentially attracting a mainstream audience to the Sui network without requiring them to understand the underlying technology.

Buy, sell or hold?

Among the cryptocurrencies discussed, Sui is a strong buy, XRP is a hold, and Dogecoin is a sell. While XRP has shown explosive growth recently, and Dogecoin has rekindled some momentum, these appear to be short-term trends.

In contrast, Sui shows promise for sustained long-term growth. If you’re familiar with how Ethereum or Solana operates, you’ll grasp Sui’s concept and potential value easily. Moreover, the upcoming gaming console could significantly boost mainstream adoption of Sui.

However, remember that investing in altcoins carries a high level of risk. While these three cryptocurrencies have outperformed Bitcoin this year, the dynamics could shift drastically as we approach 2025.

Dominic Basulto holds positions in Bitcoin, Ethereum, SUI, and Solana. The Motley Fool has stakes in and endorses Bitcoin, Ethereum, SUI, Solana, and XRP. The Motley Fool supports WisdomTree and adheres to a disclosure policy.

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