The recovery of cryptocurrencies: analysis of returns for 2024

Just recently, a year that could be defined as a recovery for cryptocurrencies has come to an end, and in this article, there is a desire to put in black and white what the numbers and returns achieved by some of the main cryptos in 2023 have been.

Figure 1. Summary table of crypto performance

From the table visible in figure 1, it can be seen how after a disastrous 2022 for all cryptocurrencies, without exception, 2023 was instead a year of rebound and general growth for the entire sector.

Obviously not all cryptocurrencies have achieved the same returns, or even similar ones in some cases.

For example, it is easy to identify the best crypto, in this list, Solana (SOL), which has achieved returns of 900% in 2023.

Solana is an ecosystem that many define as an alternative to Ethereum (ETH), which instead gained 90.22% in the past year. However, it is worth noting that Ethereum’s 2022 performance was less severe (-68.6%) compared to Solana’s debacle (-94.15%).

Currently, Solana’s token would need a return of about 173% to reach its all-time high, set at $260. On the other hand, Ethereum is 94% away from its all-time high, recorded at $4,877.

Excellent performance by Bitcoin (BTC), recently approved by the SEC for the clearance of Spot ETF sales on BTC, which recorded a rise of 155.79% in 2023.

Currently, the ATH, or all-time high, is still -38.13% away. In short, a nice recovery after a particularly difficult year (-64.07%) like 2022.

Among the other top-performing cryptos of 2023 that have not been mentioned yet are RAY, LINK, ADA, FTM, and AAVE, all with returns exceeding 100% in 2023.

Among the worst performers, we find APE, CVX, 1INCH, BNB (which certainly did not benefit from the fines on Binance and its founder Changpeng Zao), ATOM, and DOGE, with returns ranging from -55.63% to 27%.

Figure 2. Summary table of crypto performance ordered by “ToATH”

By trying to look at the same table from a different point of view, that is by ordering the various cryptocurrencies from the closest to their all-time high to the farthest, a very different ranking is observed compared to the previous one.

For example AXS, a token of Axie Infinity operating in the gaming sector (and not only), despite a decent 46.01% in 2023 (decent considering it’s a crypto), should perform over 2000% to return to its all-time highs. BTC (requiring a 61.6% increase to reach its highs), ETH, and BNB are doing much better as they are currently worth half of their all-time high value.

Even SOL, despite an amazing year, should more than double its value to return to the highest price ever recorded.

By scrolling through the list, we find a handful of cryptos that at current prices should more than triple, if not multiply by ten (like the case of MANA, RAY, LRC, 1INCH, SAND, and others) their value to return to all-time highs.

It is clear that if there is a sector that has accustomed investors to astonishing returns, it is precisely the crypto sector. It would be difficult to imagine returns higher than 1,000% on major stocks in short periods of time, or on other products such as commodities or bonds. But cryptocurrencies have shown many times in the past that they are potentially capable of very positive returns, as well as very negative ones.

For many, 2024 could be a positive year, as the expectations of growth in years like this, in which there will be the halving (i.e. the halving of the Bitcoin supply), have always been synonymous with significant increases for Bitcoin itself and in general for all cryptocurrencies.

It has been mentioned at the beginning of the article how the Bitcoin ETFs have been approved, which is a further signal of how the cryptocurrency is increasingly integrated with the world of finance.

Until now, the crypto market remains quite volatile. Perhaps the advent of ETFs and the first regulations in the sector could contribute to improving its stability and maximum daily fluctuation. However, until then, it is always advisable not to invest large portions of your portfolio in very volatile and risky sectors to avoid unwanted stomachaches.

Will 2024 be the year of crypto? Some people are betting on it, as always, we just need to have a little patience to find out. For now, the next event to mark on the calendar is between April and May, the period in which the long-awaited Bitcoin halving will likely take place.

Until next time and happy trading!

Andrea Unger

Source