In 2023, the crypto market emerged from the “crypto winter” into a symbolic summer, with waning investor concerns about a harsh global economic downturn and a renewed interest in risk assets.

While the U.S. Securities and Exchange Commission (SEC) has increased scrutiny on crypto exchanges, it has simultaneously offered valuable clarity for investors. BlackRock and other prominent asset managers have refiled applications to introduce Bitcoin (BTC) spot exchange-traded funds (ETFs), potentially serving as a significant positive catalyst should these proposals receive approval.

Here are the 5 best-performing cryptos of 2023. Let’s have a look!

#1 Bitcoin (BTC)

Bitcoin, a decentralized peer-to-peer crypto, emerged from conceptualization in 2008 and was officially launched in early 2009 by the mysterious figure, Satoshi Nakamoto. Pioneering the blockchain concept, Bitcoin provides a fully decentralized and highly secure digital currency, employing Proof-of-Work to safeguard transaction history against alterations or double-spending. Miners play a crucial role in securing the network, receiving BTC coins as rewards for adding blocks to the Bitcoin blockchain.

Despite the proliferation of numerous cryptos and blockchain platforms, Bitcoin remains the largest crypto by market capitalization.

Why Bitcoin?

In 2023, Bitcoin witnessed a remarkable 150% growth, maintaining a robust position above $40,000 even amidst a market correction in December. The ongoing pursuit of the spot Bitcoin ETF approval in the U.S. continues to dominate the crypto market narrative, with significant developments on this front expected to impact Bitcoin’s price noticeably.

Anticipation is high for the approval of a spot Bitcoin ETF in the U.S. by January 10, 2024, with Bloomberg’s ETF analysts Eric Balchunas and James Seyffart assigning a 90% probability to this outcome. Another significant market narrative revolves around expectations that the U.S. Federal Reserve will ease its monetary policies, aligning with the apparent control of inflation in the United States. Traders are currently speculating on a potential interest rate cut by the Federal Reserve in May 2024. Notably, such a scenario aligns with the Bitcoin halving, potentially creating favorable conditions for BTC to experience bullish momentum.

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#2 Solana (SOL)

Solana distinguishes itself as a smart contracts platform with a distinctive architecture, enabling the processing of thousands of transactions per second at minimal costs. This efficiency is achieved by implementing a unique Proof-of-History algorithm and a Proof-of-Stake consensus mechanism. SOL is one of the most cost-effective cryptos, with average users paying less than $0.001 per transaction.

Founded in 2018 by Anatoly Yakovenko, Solana’s mainnet launched in March 2020, experiencing substantial adoption in 2021. Despite facing a decline in value during the 2022 bear market, Solana maintains one of the crypto sector’s most impressive ecosystems.

Why Solana?

Solana’s ecosystem remains highly active, with SOL exhibiting a remarkable +477% performance since January 1, fostering increased engagement within the Solana community.

Notably, the Jupiter project recently unveiled plans for its first of four airdrops scheduled for January 2024. The Jupiter decentralized exchange, facilitating token swaps and perpetual futures trading, will distribute tokens to users based on specific criteria.

The upcoming Jupiter airdrop represents just one facet of the intriguing developments within the Solana ecosystem. BONK, a meme coin on the Solana network, has experienced a surge in the past month, boasting a +580% increase against the U.S. dollar in the last 30 days and outperforming even notable tokens like PEPE.

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#3 Helium (HNT)

Utilizing blockchain technology, the Helium project incentivizes users to sustain decentralized wireless networks. In 2019, the project’s inaugural network focused on IoT (Internet of Things) devices, while the 5G network took flight in August 2022. Currently, the IoT network boasts a significantly larger scale, hosting 363,989 hotspots in contrast to the 5G network’s 4,115 hotspots.

Initially operating on a custom blockchain for its token incentive system, Helium successfully transitioned to the Solana platform in early 2023.

Why Helium?

In 2023, Helium experienced an impressive 329% growth, driven by the introduction of the Helium Mobile phone, covering the entire United States. Priced at $20 per month, this innovative offering provides users with unlimited data, text messages, and calls. Amir Haleem, CEO of Helium Mobile, notes a daily influx of approximately 1,000 new sign-ups, contributing to the project’s notable expansion.

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#4 Ethereum (ETH)

Ethereum stands as a blockchain supporting smart contracts, facilitating intricate applications like decentralized lending protocols and non-fungible tokens. Founded by Vitalik Buterin, the Ethereum project unveiled its whitepaper in late 2013, followed by the blockchain’s launch in July 2015.

ETH serves as the native asset, incentivizing users to uphold network security. Initially operating on a Proof-of-Work consensus mechanism, Ethereum transitioned to Proof-of-Stake in September 2022.

Why Ethereum?

Ethereum has reached its highest valuation since May 2022, surpassing the $2,200 mark for the first time this year. While the Bitcoin ETF narrative prevails, Ethereum’s significance grows, especially with asset management giant BlackRock seeking approval for a spot Ethereum ETF in the U.S. Ethereum, renowned for its robust smart contracts ecosystem, is poised to witness heightened demand if a crypto bull market materializes.

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#5 Pepe Coin (PEPE)

PEPE coin is a recently developed crypto as a tribute to the Pepe the Frog internet craze. It is a decentralized crypto that may be used for transactions and as a governance token for the PEPE community that’s built on the Ethereum network.

The PEPE coin has garnered support from meme fans who view it as a humorous addition to the crypto space as a meme coin. Consequently, it also has the potential for practical usage, as it can be utilized as a medium of exchange for products and services within the decentralized ecosystem.

The PEPE coin leverages smart contracts to facilitate safe and transparent transactions on the blockchain, with a total supply of 420 trillion.

Why Pepe?

PEPE’s remarkable resurgence in 2023, doubling its market cap to $500 million, stems from a convergence of factors. Following a dip from its peak, renewed interest was sparked by the disclosure of 155,000 wallets, increased trading activity, and a strategic $5.5 million token burn to allay fears of a potential sell-off. This revival aligns with a broader positive trend in the memecoin sector, as evidenced by rallies in Dogecoin and Shiba Inu amid an optimistic crypto market driven by Bitcoin’s impressive surge and growing anticipation of a U.S. spot ETF approval. PEPE’s success underscores the intricate interplay between internal dynamics and broader market sentiments.

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Bottomline Thoughts

As we bid farewell to the remarkable year 2023, these top-performing cryptos have left an indelible mark on the ever-evolving landscape of digital assets. From the resurgence of once-muted memecoins to the soaring heights of established giants like Bitcoin, the crypto market has proven its resilience and dynamism. As we eagerly anticipate the opportunities and challenges that 2024 may bring, it’s crucial for investors to stay informed and agile. The lessons learned from the successes of these top performers underscore the importance of adaptability and strategic decision-making in navigating the unpredictable yet exhilarating realm of crypto. Are you ready to ride the crypto wave in 2024?

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.