Benzinga’s choice for the best altcoin to invest in this May is Ethereum. You can get it on notable exchanges such as eToro, Coinbase and Kraken.
Despite Bitcoin making headlines and doing well in 2024, many other tokens have provided much larger returns for investors. These non-Bitcoin tokens, called altcoins, have taken the crypto world by storm, particularly in 2024. They present a huge investment opportunity with tons of room for growth. Additionally, they cover a wide range of use cases, so you are likely to find a project that you believe in and aligns with your interests and investment goals. Take a look at some of the top altcoin projects of May 2024.
Best Altcoins to Buy Now
1. Ethereum (ETH)
eth
Ethereum$2986.00*
*prices delayed up to 10 minutes-4.36%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$3,200
Market cap: ~$400 billion
Ethereum, the largest altcoin, is known for its ability to allow access to decentralized finance (DeFi) applications. These applications cover many projects, ranging from popular meme coins to the top up-and-coming artificial intelligence (AI) startups. The chain has a developer-friendly environment and a strong smart contracts system, making it a great place to build new projects. In 2022, the token greatly increased efficiency and environmental friendliness by switching from a proof-of-work to a proof-of-stake system. In 2024, the chain underwent upgrades that helped increase speeds and lower costs. In 2024, there is also potential for spot Ethereum exchange-traded funds (ETFs), which could provide a further catalyst by bringing new investors to ETH.
2. Solana (SOL)
sol
Solana$154.63*
*prices delayed up to 10 minutes+1.21%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$140
Market cap: ~$65 billion
In late 2022 and early 2023, many thought Solana’s time as a crypto project was over. This was because of the collapse of FTX Trading Ltd., which had invested millions of dollars into SOL. Within a year of FTX becoming insolvent, SOL lost 96% of its value. However, the chain has seen a huge comeback in 2023 and 2024. The token is nearing all-time highs and many have a renewed optimism in the project. This is largely because of the numerous projects that launched on Solana in 2023 and 2024, most notably a handful of new prominent meme coins such as Bonk (BONK) and dogwifhat (WIF). As new meme coins continue to pop up, Solana could benefit from new users racing to the Solana blockchain.
3. Dogecoin (DOGE)
doge
Dogecoin$0.147732*
*prices delayed up to 10 minutes-7.05%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$0.15
Market cap: ~$21 billion
Dogecoin is the oldest meme coin and has stayed around long enough to cement itself as the top altcoin. Though its primary use is as a form of payment and to facilitate transactions, a strong community of investors has allowed the token to continue appreciating with the rest of the crypto market. Additionally, a handful of rumors surrounding DOGE and billionaire Elon Musk could also benefit the token. For example, Musk recently said that he would consider allowing investors to purchase a Tesla with DOGE, and his social media company X is securing payment licenses in many states. If these events occur, DOGE could see a huge price increase.
4. Binance Coin (BNB)
bnb
BNB$579.36*
*prices delayed up to 10 minutes-2.48%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$600
Market cap: ~$90 billion
Binance Coin, the token that helps facilitate transactions on the Binance exchange, is another interesting altcoin. The token took a bit of a hit in late 2023 when former CEO Changpeng Zhao pled guilty to money laundering charges and resigned from his role as chief executive. This blow caused many to wonder whether Binance could continue as a company. However, new leadership stepped up and the exchange continues operations. The token could also benefit from the list of new altcoins going up daily and bringing in new users. This makes the platform a solid pick for those looking to get in on the latest market trends.
5. Avalanche (AVAX)
Price: ~$35
Market cap: ~$13 billion
Focused on low costs and high speeds, Avalanche is hoping to solve some of the major issues other blockchains face. In particular, Avalanche is creating its own niche within the token exchange and financial trading markets. Many of the projects it hosts bring staking, trading and yield farming to AVAX users. As crypto trading gains popularity, AVAX could benefit from new users entering the market and choosing Avalanche. Additionally, if Avalanche can start attracting projects outside of trading and exchanges, it could broaden the use cases and bring in even more users.
6. Ripple (XRP)
Price: ~$0.50
Market cap: ~$30 billion
With increased interest from institutions in terms of crypto adoption, XRP could be in a solid position to benefit from being the largest firm to specifically target institutions in terms of use cases. The firm uses the XRP token to allow institutions to seamlessly integrate crypto and blockchain technology into their operations, which can lead to increased efficiency and lower costs. The technology has some of the lowest transaction costs and highest speeds in the industry, allowing Ripple to differentiate itself and attract users to the chain. If Ripple can continue to bring in new clients and expand its user base, there is certainly room for XRP to grow.
7. Uniswap (UNI)
uni
Uniswap$14.81*
*prices delayed up to 10 minutes-6.42%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$8
Market cap: ~$5 billion
With altcoins on the rise, many are looking for an all-in-one solution to finding and buying the latest projects. Uniswap makes this possible by connecting buyers and sellers through its decentralized exchange platform. Uniswap allows anyone with a wallet to buy, sell, swap and stake nearly any cryptocurrency on the market. It uses a liquidity pool system to make sure it is easy to get in and out of investments at a good price. The exchange also offers non-fungible tokens (NFTs), making it a top pick for any DeFi investor. UNI is the token that helps the exchange run by providing liquidity and governance. If you are bullish on altcoins in general, UNI could be a solid choice for you.
8. Render (RNDR)
rndr
Render$10.62*
*prices delayed up to 10 minutes+7.79%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$8
Market cap: ~$3 billion
One of the largest issues facing tech companies is a shortage of semiconductors. This means they can buy computational hardware for a premium or outsource the computing tasks to another party. Render is hoping to assist firms with the second option. It creates a marketplace for cloud computing, allowing anyone with computing power to sell it to anyone in need of computing power. The system allows firms to access computing resources on demand and allows those with computing power to sell it when they are not using it. RNDR powers the marketplace, helping users transact their computing power.
9. NEAR Protocol (NEAR)
Price: ~$7.50
Market cap: ~$8 billion
Because blockchains process a huge amount of transactions every day, they rely heavily on computing power, usually sourced from participants in the specific blockchain. This can put a lot of strain on the project during peak load times, resulting in higher fees. NEAR saw this issue and decided to create its own blockchain, using cloud computing to process transactions instead of its own computational power. This can help increase speeds and scalability. The project is easy to use from a developer’s perspective, with lots of open-source code available to help build out projects. If it can continue to bring in new use cases, the token could continue to perform well.
10. TRON (TRX)
Price: ~$0.12
Market cap: ~$10 billion
One of the largest and fastest-growing spaces in the global economy is content creation. TRON is a platform that hopes to empower creators by allowing them to interact directly with fans without intermediaries taking their share. The blockchain has applications in the streaming, music, app and other content creation industries. Blockchain in general has become a symbol of decentralization, which parallels the desire for content creators such as filmmakers and musical artists to go independent. TRON could provide these creatives with the platform to interact with fans without an intermediary. TRON also can be used as a form of payment, a way to store data and many other use cases.
What Is an Altcoin?
Any token that is not Bitcoin is an altcoin. Bitcoin dominates the crypto market, so anything that is not Bitcoin is considered to be different.
There is some debate about whether or not Ethereum is an altcoin because many projects stem from the chain. However, for this article, Benzinga considers altcoins to be tokens that are not Bitcoin.
Some popular examples are DOGE, SOL, USDC and UNI. There are over 10,000 altcoins, and the number of altcoins is growing every day.
Types of Altcoins
The 10,000-plus altcoins can be classified into several categories. Take a look at some examples:
- Stablecoins: Stablecoins are pegged to another currency, usually the U.S. dollar. They exist to provide stability in the crypto world and are usually backed by another asset. Some examples are USD Coin (USDC), Tether (USDT) and Magic Internet Money (MIM). Their main applications involve swaps and staking.
- Payment token: Payment tokens are used to facilitate transactions among users on the blockchain. While most tokens can be used for this purpose, some directly specialize in it, such as BTC and DOGE.
- Security token: A security token is a relatively new concept that is not available to all investors. However, it is a process in which a firm or an individual can sell tokens that represent ownership and are regulated by the Securities and Exchange Commission (SEC). It is effectively a way for a firm to raise money on the blockchain in a regulated manner.
- Utility token: Utility tokens have a fairly broad definition, as they can be used to support functions on the blockchain. Some examples can be paying fees, participating in decision-making processes and staking.
- Meme coins: These tokens are inspired by internet memes. Some of the more popular meme coins, such as DOGE and Shiba Inu (SHIB), are based on dog memes. Most meme coins do not serve a specific purpose and receive value from strong communities. These tokens have taken off in popularity in 2024.
- Mining-based coins: One way that blockchains can process transactions is through a process called mining. This is when validators use powerful computers to complete math problems, and the first computer to answer is allowed to verify transactions in exchange for a reward. Some examples are Bitcoin, Monero and Kaspa.
Some tokens can fall into multiple categories. For example, SOL is used as both a governance token and a utility token.
Pros and Cons of Altcoins
Take a look at some pros and cons.
Pros
- Can improve upon the model created by Bitcoin
- Large variety of tokens
- Access to DeFi applications
- Potential for large price increases
Cons
- Lack of market share
- Not available on all exchanges
- Can lose value quickly
How to Invest in Altcoins
While no single site offers all 10,000-plus altcoins, some crypto trading platforms offer more altcoins than others. For altcoin investing, Kraken and Coinbase are great options. They are well-known for their low fees, enhanced security and ease of use.
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Are Altcoin Investments Subject to Taxation?
Yes, altcoins are subject to taxation. The IRS treats cryptocurrency as a form of property. Because of this, you are required to pay capital gains tax on crypto sales. Crypto exchanges send Form 1099s, which report capital gains and losses for the year. You can use this form to report your taxes on crypto transactions.
Is It Better to Buy Bitcoin or Altcoins?
Because Bitcoin is the largest token in the crypto space, its price can have a huge impact on all other tokens. Many view changes in Bitcoin as the driver of market-wide changes. When Bitcoin does well, other tokens generally perform well and vice versa. Because Bitcoin is so large, it is also rare that specific events will drive the price. If a celebrity or financial analyst says that they like Bitcoin, it will likely not have a large impact on the price. However, this is not always the case for altcoins.
While some price movements in altcoins can be attributed to changes in Bitcoin, many idiosyncratic events also impact their price. For example, Tesla Inc. CEO Elon Musk speaking about DOGE usually influences the price, or if an analyst hypes up a smaller token, it can go up significantly. This often means that altcoins are riskier to invest in, as the price can be driven by many different factors that are largely unpredictable.
The choice to invest in Bitcoin or altcoins comes down to risk tolerance. If you can stomach huge risks in the hopes that a token will go up a lot, altcoins could be a more appealing investment option.
Altcoins: Lots of Options, Lots of Potential
Altcoins are a broad asset class, with possible investments ranging from high-tech AI startups to unknown meme coins. While this brings about opportunities for profitable investments, it also means that much more research is needed to find the right tokens to invest in. While this process is difficult, it can lead to profitable trades.
Frequently Asked Questions
What's the best altcoin to invest in right now?
While it is impossible to determine the best altcoin, some of the more popular picks are ETH, DOGE, SOL and BNB.
Which altcoins are most promising?
Some of the best altcoins with potential catalysts in 2024 are ETH and SOL.
Which coin will reach $1 in 2024?
Some tokens below $1 are DOGE, TRX, ADA, MATIC and XRP.
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About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.