The crypto market remains in a narrow range, with Bitcoin price consolidating at the key $90,000 support level. This consolidation may end soon as investors bet on a Santa Claus rally. This article identifies some of the best crypto to buy now to take advantage of this potential market rally.
Best Crypto to Buy Ahead of the Santa Claus Rally
A Santa Claus Rally is a period when financial assets, such as stocks and cryptocurrencies, rally in the final weeks of the year. In most cases, this rally typically happens after the Thanksgiving weekend, while in others it occurs after the last Federal Reserve interest meeting of the year.
However, some analysts warn that there is no empirical evidence that this rally occurs, as stocks and cryptocurrencies have often dropped in the last two weeks of the year.
Nevertheless, some of the best crypto to buy are those that have strong fundamentals, including popular names like Ethereum (ETH), Solana (SOL), Ripple (XRP), and Polygon (POL).
Ethereum (ETH)
Ethereum is one of the best cryptos to buy now as demand remains elevated and the supply in exchanges drops to a record low. Demand has jumped, with a company like BitMine becoming its biggest holder over the past five months, a trend that may continue as it aims to accumulate 5% of the supply.
Ethereum ETFs have also accumulated over $13 billion in tokens in less than two years, while stakers now hold over $112 billion worth of coins. ETH ETFs will continue growing now that BlackRock has applied for a staking ETH ETF that will enable users to earn a monthly return.
At the same time, Ethereum has a dominant role in the real-world asset (RWA) tokenization industry, decentralized finance (DeFi), and stablecoin industries.
Ethereum’s role in these industries will continue to grow as it improves its network and performance, especially with the recent Fusaka upgrade.
Ripple (XRP)
XRP is another top crypto to buy because of its strong fundamentals, which may help it recover from the current bear market. Ripple Labs recently received a bank charter in the United States, a move that will boost its role in the financial services sector.
XRP ETFs have accumulated over $1.1 billion in inflows in less than a month, and analysts believe that there will be more demand in the coming months.
Meanwhile, Ripple has become a major player in the stablecoin industry, with the RLUSD gaining over $1.3 billion in assets. Some of these assets are in the XRP Ledger network.
Technically, the XRP price has formed an inverse head-and-shoulders pattern, suggesting a rebound in the coming weeks.
Solana (SOL)
While Ethereum will most likely remain the most dominant layer-1 network in the crypto industry, Solana will remain its largest competitor. It has a big market share in all industries, including DeFi, gaming, and NFTs.
It is also the most active blockchain network in terms of transactions. Its transaction count jumped to nearly 2 billion in the last 30 days, much higher than the other six chains combined.
Solana is also a good crypto to buy because of its higher staking yield of 6.3%, which helps to offset its price movement. Its yield is much higher than Ethereum’s 2.66%.
Meanwhile, like Ethereum, the developers are working on self-improvement, especially with the upcoming Alpenglow upgrade, which will introduce more features, including higher throughput and a transition to a proof-of-stake network.
Solana ETFs are also seeing strong investor demand, with inflows rising to over $674 million and net assets approaching $1 billion. The biggest ones are from companies like Bitwise, Grayscale, Fidelity, and VanEck.
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Polygon (POL)
Polygon is another top crypto to buy during the upcoming Santa Claus rally. This is a highly contrarian call, as the token remains near its lowest level since transitioning from MATIC to POL.
Polygon has numerous bullish catalysts. For example, it is the second-fastest growing network in the crypto industry, with its 30-day transactions rising by 90% to 158 million.
Polygon is also a major player in the stablecoin industry, with its market capitalization jumping to over $2.8 billion, most of it in USDC. Its total value locked (TVL) has remained at $1.2 billion, making it one of the industry’s biggest players.
These fundamentals will likely help boost its performance in the coming weeks as investors buy the dip.
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