PriyankaWe recently compiled a comprehensive list of the 12 Best Cryptocurrencies to Invest in According to Reddit. In this detailed analysis, we will delve into where Tokamak Network (TON) stands relative to other leading cryptocurrencies.
The past year has been tumultuous yet rewarding for cryptocurrency investors. The approval of spot Bitcoin ETFs in the first quarter of the year marked a pivotal moment, allowing markets some time to digest the SEC’s decision before also approving spot Ethereum ETFs in May. Consequently, spot Bitcoin ETFs amassed over $50 billion in combined assets in under six months of trading—a feat some market experts regard as the most successful ETF category ever launched.
In addition to spot offerings, crypto-themed ETFs have demonstrated robust performance in the first half of 2024. For instance, the First Trust SkyBridge Crypto Industry & Digital Economy ETF exhibited a remarkable year-to-date (YTD) growth of approximately 20%. Blockchain-focused products have garnered significant attention from enthusiasts, with the Amplify Transformational Data Sharing ETF rising by roughly 19% on a YTD basis.
Artificial Intelligence has recently been integrated into the crypto realm, giving rise to AI tokens. These tokens are directly tied to AI ventures and serve various purposes, such as supporting AI-based projects, applications, and services. Examples include decentralized AI marketplaces and AI-driven decentralized autonomous organizations (DAOs). Users can utilize tokens for service payments or data access on these platforms, while platforms can reward users with tokens to incentivize engagement. Notably, CoinMarketCap reported a healthy market cap increase of over 70% for AI and big data cryptocurrency projects within a few weeks, reflecting renewed investor confidence.
The crypto industry has also faced significant regulatory scrutiny, highlighted by the meltdown of leading cryptocurrency exchange FTX. The absence of regulation was a primary factor behind its downfall. However, government entities have since become proactive in enforcing rules, with the Securities and Exchange Commission (SEC) emerging as the most active watchdog in the crypto market. CNBC reported that the U.S. has been one of the most aggressive regulators, taking legal action against major crypto companies. Clear regulatory standards could pave the way for institutional investors like banks and asset management companies to venture into crypto assets.
According to a bi-annual survey by KPMG in Canada and the Canadian Association of Alternative Assets and Strategies (CAASA), about 22% more financial services organizations offered crypto-asset products and services to their clients in 2023 compared to 2021. Additionally, approximately 26% more institutional investors included crypto-related assets in their portfolios in 2023 than in 2021.
Coinbase highlighted that updated second-quarter 2024 13-F filings revealed a significant increase in institutional inflows into U.S. spot Bitcoin ETFs. This trend is seen as a promising indicator for the Bitcoin market. Institutional ownership of these ETFs rose from 21.4% to 24.0% between the first and second quarters of 2024.
According to the United States International Trade Commission, global revenues from tokenized asset exchanges amounted to approximately $26.5 billion in 2022, with around 76% originating from cryptocurrencies. Revenues from tokenized assets surged significantly in 2021 due to growth in non-fungible tokens (NFTs) and rising cryptocurrency prices. McKinsey projects that total tokenized market capitalization will reach around $2 trillion by 2030, excluding leading cryptocurrencies and stablecoins. This growth is anticipated to be driven by adoption across mutual funds (MFs), bonds and exchange-traded notes (ETNs), loans, securitization, and alternative funds.
Globally, the cryptocurrency market capitalization exceeded $2.5 trillion, according to Forbes, with Bitcoin reaching a record high of over $73,000 and a market cap of $1.4 trillion by mid-March 2024. The cryptocurrency market is projected to grow to around $6.6 billion in 2024. Forbes also reported that the number of users in the cryptocurrency market is expected to reach 107.30 million by 2025.
The growth in the cryptocurrency market is expected to be driven primarily by higher acceptance and adoption among institutions and individuals, increased usage of decentralized finance (DeFi) platforms, advancements in blockchain technology, and more frequent cross-border transactions.
Our Methodology
We meticulously sifted through various communities, subreddits, and threads to curate our list of the 12 best cryptocurrencies by identifying trending ones. These were then ranked in ascending order based on their market capitalization as of August 29.
At Insider Monkey, we focus intensely on stocks favored by hedge funds. Our research has shown that by imitating the top stock picks of the best hedge funds, we can outperform the market. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outpacing its benchmark by 150 percentage points.
Tokamak Network: A Deeper Dive
Market capitalization as of August 29: $46.2 million
Tokamak Network is a sophisticated blockchain platform designed to enhance the scalability and flexibility of decentralized applications (DApps) operating on the Ethereum network. Founded in 2018 by experts with deep knowledge of the cryptocurrency sector, Tokamak Network addresses a critical need for increased efficiency within the Ethereum ecosystem.
At its core, Tokamak Network functions as a Layer 2 (L2) solution network built atop the Ethereum blockchain. These solutions aim to improve transaction speeds and reduce costs without compromising security. The platform supports developing and deploying various L2 networks tailored to specific user needs, enabling developers to create customized L2 solutions that efficiently handle their DApps’ demands.
Tokamak Network employs a multifaceted approach to ensure security and efficiency, central to which is using SNARK technology—a cryptographic method renowned for enhancing privacy and scalability. By integrating SNARK technology, Tokamak Network fortifies its security framework against potential threats and vulnerabilities.
Overall, TON ranks 8th on our list of the best cryptocurrencies to invest in right now. While we recognize TON’s investment potential, we believe that some undervalued AI stocks hold greater promise for higher returns within a shorter timeframe. For those seeking deeply undervalued AI stocks trading at less than five times their earnings, we recommend checking out our report on the cheapest AI stock.
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Disclosure: None
