2023 Crypto Boom: Bitcoin Leads as Solana, Tron, and Avalanche Record Significant Gains
Summary:
In 2023, the cryptocurrency market saw a major recovery led by Bitcoin, with Solana, Tron, and Avalanche making significant gains. Solana made a significant comeback, largely due to its resilience during FTX's bankruptcy asset sales and increased decentralized application usage. Tron grew 1,270% since the crypto crash between 2018-2020, boosted by decentralised finance growth. Meanwhile, despite weak network metrics, Avalanche experienced a 370% rise from its cycle low of $8.65 in September 2023. However, 2024 might bring market corrections and flunctuations for all these cryptocurrencies.
In 2023, Bitcoin (BTC) led a significant revival in the cryptocurrency market, with the top cryptocurrency recording a year-to-date (YTD) increase of 160%. Many altcoins also saw substantial gains as the upward trend took off. The biggest price surges of 2023 saw Solana (SOL) make a stunning recovery, increasing nearly 1,215% from its cycle low of $8.27 in December 2022. It also rose 485% against Bitcoin from its cycle low.
Despite the 95% drop in its price in 2022, Solana saw a tremendous rise in 2023. This was primarily due to its resilience during the bankruptcy assets sales by FTX, significant growth in the use of its decentralized application, increased market demand and network activity, as well as improved network stability.
Looking at Solana's price analysis, the technicals suggest a bearish outlook for early 2024. Specifically, Solana's weekly relative strength index (RSI) being above 70 suggests a potential pullback. As 2024 progresses, Solana might see a drop to its ascending trendline support level (around $40). However, the latter half of the year may see an uptrend for Solana, possibly returning to its previous record high of approximately $265 by year-end.
Meanwhile, Tron (TRX) showed a significant rise of 1,270% since the crypto market crashed from 2018 to 2020. This increase comes along with impressive growth in the decentralized finance (DeFi) sector, with the total value locked (TVL) in the Tron ecosystem expanding from around 30 million TRX in April 2020 to over 76 billion TRX (~$8 billion) by December 2023.
Tron has also witnessed token-burning activities reducing the active supply against the rising TVL, theoretically driving up the price. Moreover, Tron dominates as the prime blockchain for Tether (USDT), seeing the USDT market cap rise in 2023.
In terms of 2024 price outlook for TRX, significant fluctuations are expected in Q1. External factors such as the approval of a spot Bitcoin exchange-traded fund, Bitcoin's halving in April, and the overall performance of the global economy will likely shape price trends for the year.
Finally, Avalanche (AVAX) experienced a 370% rise from its cycle low of $8.65 in September 2023. Although roughly 19 million AVAX tokens became unlocked in the latter half of 2023, the market readily absorbed the extra supply. But weak network metrics signal a reduced demand. The TVL across the Avalanche ecosystem dropped to approximately 23 million AVAX in December 2023, down from about 55 million AVAX in September.
In terms of AVAX price projections for 2024, it's clear there is a lack of trading volume in the rising prices. This may signal that fewer traders are active in the market, and those who are might not be confident in the price rally's durability. Experts predict a correction is about to start, targeted towards the next Fib line of $29.50, which may play out in Q1, 2024. If AVAX further dips below $29.50, a drop to its 50-week EMA near $20.16 is likely—indicating a potential bearish target.
Please note, this article does not provide investment recommendations. Any investment or trade carries risks, and readers should carry out their independent research before making any decisions.
Published At
12/30/2023 1:20:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.