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And with a wave of crypto-friendly politicians preparing to take office, crypto fever has only spiked higher.
So which cryptocurrencies see the highest trading volume?
More importantly,should you consider adding them to your portfolio, too?
Stablecoins are tied to a specific currency.
They work by backing each coin with an actual dollar in a real bank account.
Theyre frequently used when buying or selling cryptocurrencies or holding funds temporarily.
Their high trading volume reflects this utility, not investment potential.
But they arent designed to go up in value quite the opposite, in fact.
Bitcoin
The first and most famous of all cryptocurrencies, everyone knows Bitcoin.
Its the only fully permissionless and decentralized asset that cannot be seized by a higher power.
Its the only asset that can be easily stored and sent without the need for a third party.
More importantly, people all around the world are using it as a medium ofexchange and storeof value.
Puckrin makes a compelling case, and the coins performance in 2024 has certainly exceeded expectations.
Just dont bet the proverbial farm on Bitcoin, or any other cryptocurrency.
Ethereum
The third-highest cryptocurrency by trading volume comes as no surprise: Bitcoins not-so-little brother Ethereum.
Ethereum makes trading history accessible to users, explained Melanie Musson, a finance expert withClearsurance.com.
Traders who love to dig deep into transactions can access as much information as they want.
But the appeal doesnt end there.
Ethereum is the basis of the decentralized finance (DeFi) peer-to-peer financial platform and NFT, Sharilov explained.
After all, it is because of Ethereums high energy consumption that transaction fees are high.
Max Property
Some cryptocurrencies are backed by physical assets in the real world.
Buying a coin gives you fractional ownership in property.
In a highly volatile format, it should be noted.Real estate valuesremain relatively stable precisely because theyre so illiquid.
Solana is very fast with low fees, making it ideal for large DeFi projects, noted Sharilov.
However, the connection has experienced outages, so there are currently concerns about its centralization.
(See this quick recap of Dogecoins history byBusiness Insiderif youre curious how that all unfolded.)
Consider Dogecoin the ultimate memecoin, or cryptocurrencies founded offpopular online jokes.
Their trading volume spikes because they grab attention, often through media buzz.
For instance, Burger King recently gave away Dogecoin with purchases.
However, investing in meme coins is extremely risky.
Your money could vanish quickly, though theres always the potential for a quick gain.
Michael Tanney, senior managing director ofMagnus Financial Group, offers a parting word of caution.
High trading volume may represent speculative trading, rather than long-term investment fundamentals, he said.
It doesnt necessarily reflect the potential for future growth or stability.
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