Prediction: These three phenomenal cryptocurrencies are poised to soar

Many cryptocurrencies have lost their luster over the past two years as rising interest rates pushed investors toward more conservative investments. But the Federal Reserve cut its key interest rate in September for the first time in four years and is widely expected to cut those rates again in the near future.

This change could make cryptocurrencies more attractive again. If you want to benefit from this trend, you should consider purchasing these three phenomenal coins: Bitcoin (BTC 0.90%), Ethereum (ETH 0.85%)And XRP (XRP -0.31%).

1. Bitcoin

Bitcoin is the world’s most valuable cryptocurrency and the 10th most valuable asset, with a market capitalization of $1.3 trillion. The supply cap is 21 million coins, of which 19.8 million have already been mined. Bitcoin is still mined using the energy-intensive Proof of Work (PoW) consensus mechanism, which requires powerful application-specific integrated circuit (ASIC) miners. Scheduled “halvings,” which occur every four years, continually halve mining rewards.

These properties make Bitcoin more similar to a precious metal than other cryptocurrencies that are validated (but not mined) using the more energy-efficient Proof of Stake (PoS) consensus mechanism. For this reason, Bitcoin is still the only cryptocurrency that the US Securities and Exchange Commission (SEC) officially recognizes as a commodity and not a security. This classification supported the approval of the first Bitcoin spot price exchange-traded funds (ETFs) in January of this year. It was even adopted as a recognized currency in El Salvador and the Central African Republic.

This tailwind makes Bitcoin arguably the safest cryptocurrency to invest in. It has already risen almost 150% in the last 12 months to almost $68,000, but is still trading well below the market’s most optimistic expectations. Social Capital’s Chamath Palihapitiya expects it to reach $500,000 in 2025, Fidelity’s Jurrien Timmer predicts it will hit $1 million by 2028-2030, and Ark Invest’s Cathie Wood says it will by 2030 could reach $3.8 million. We should take these optimistic estimates with a grain of salt, but Bitcoin could still have a lot of room for improvement as investors warm up to cryptocurrencies again.

2. Ethereum

Ethereum is the second most valuable cryptocurrency in the world with a market capitalization of $316 billion. There are currently around 120 million Ethereum tokens in circulation, and there is no hard supply cap like Bitcoin. When the Ethereum blockchain transitioned from the PoW mechanism to the PoS mechanism during the 2022 merger, it went from being an inflationary to a deflationary token.

But in 2024, Ethereum turned back into an inflationary token as its supply gradually increased. To keep supply under control, Ethereum holders often destroy (take) their tokens by sending them to “burning portals.”

Ethereum’s transition to the PoS mechanism also allowed its investors to stake (lock) their tokens for specific periods of time to earn interest-like rewards. It also added support for smart contracts for developing decentralized apps (dApps), non-fungible tokens (NFTs), and other crypto assets. This made Ethereum the foundation for a new ecosystem of decentralized applications – and this growth stabilized its price.

The SEC does not officially classify Ethereum as a commodity or security, but it approved the first spot price Ethereum ETFs in July. The cryptocurrency’s price has risen nearly 70% in the last 12 months to around $2,600, but could rise even further as the crypto winter comes to an end and the developer ecosystem blossoms. In an investor presentation last year, Cathie Wood claimed that Ethereum’s market cap could reach $20 trillion by 2032 – which would translate to a market price of more than $166,000 per token.

3. XRP

XRP is the native cryptocurrency of the Ripple payment network. Before its launch in 2013, the company minted its entire supply of 100 billion tokens and locked more than half of those tokens in escrow accounts on its blockchain. It releases these tokens regularly to stabilize its liquidity and supply. Initially, Ripple hoped that its financial customers – who used its blockchain as a cheaper and faster alternative to the traditional SWIFT (Society for Worldwide Interbank Financial Telecommunication) protocol for money transfers – would adopt XRP as an alternative to fiat currencies.

However, this never happened and the SEC eventually sued Ripple in 2020, claiming that its XRP token offerings were illegal sales of unregistered securities. This legal dispute finally ended at the beginning of the year with a lighter settlement than expected. Grayscale subsequently relaunched its XRP Trust (which it had previously closed in 2021) as a closed-end fund (CEF) for accredited investors. This move could pave the way for futures-based or spot price ETFs for XRP in the near future. To attract more developers of dApps and other crypto assets, Ripple plans to integrate Ethereum-compatible smart contracts into a new sidechain tied to the XRP ledger.

The price of XRP has only increased by around 10% in the last 12 months. It’s still trading at around $0.55 and has a market cap of just $31 billion. But over the next 12 months, the price of XRP could rise as investors turn back to riskier altcoins.