These Altcoins poised to outshine Bitcoin: Perplexity AI

2024’s Top Altcoins Poised to Outshine Bitcoin (BTC) According to Perplexity AI, Concept art for illustrative purpose – Monok

The first quarter of 2024 has seen Bitcoin display remarkable progress, not only through price fluctuations but also in terms of global acceptance. In the US alone, over a dozen spot Bitcoin ETFs have received approval, signaling growing confidence in BTC as an investment asset.

With the fourth halving upcoming in roughly two months, Bitcoin is projected to enjoy a highly bullish year, with some experts predicting prices will reach as high as $150,000. However, several cryptocurrencies also start to go north when Bitcoin does.

Following this trend, experts have consulted Perplexity AI, which has offered a different viewpoint on the top cryptocurrencies. An AI chatbot has found a number of cryptocurrencies that have the potential to be profitable in 2024.

Ethereum: The Foundation Stone for Growth

Six cryptocurrencies in particular were highlighted by Perplexity as potentially having a more successful 2024. Ethereum is the biggest altcoin by market capitalization that has experienced a more reserved 2023 with a growth rate of approximately 83%. However, Perplexity emphasizes Ethereum’s continued relevance due to its extensive use in DeFi, NFTs, and various other sectors of the digital asset industry.

The Ethereum ecosystem anticipates further upgrades and the introduction of several layer 2 networks designed to decrease transaction costs and increase speeds.

Exploring the Potential Leaders

Perplexity AI has cited that Solana (SOL), Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), and Polkadot (DOT) might outperform Bitcoin in 2024. In an outstanding 2023, Solana made significant strides to challenge Ethereum’s dominance. As the host for numerous DeFi and NFT projects and meme coins, Solana has become a formidable competitor in the space. Despite occasional network issues, SOL’s price remains unaffected due to its increasing adoption.

Avalanche, Cardano, and Polkadot have also positioned themselves as contenders for Ethereum’s market share. In the past few months, Chainlink, a decentralized oracle network, has formed significant collaborations and ventured into the Real-World Assets (RWA) sector. What sets these altcoins apart from others is their involvement in leading DeFi projects and their ability to handle transactions quickly.

Perplexity and ChatGPT concur on the top-performing cryptocurrencies for 2024: Ethereum, Solana, Polkadot, Chainlink, Cardano, and Avalanche. Their confidence grows, driven by the expanding TVL in ecosystems, including Ethereum and Solana.

Perplexity identified AVAX as an underdog in the altcoin competition, even though it had previously exceeded DOT and LINK in market cap size. Nevertheless, Perplexity sees immense potential for AVAX due to its unique selling points and burgeoning ecosystem. Cryptocurrency investments entail substantial risks, including price volatility and limited regulatory oversight.

Ethereum’s Upcoming Enhancements

Ethereum Improvement Proposals (EIPs) are ongoing developments within the Ethereum ecosystem that aim to improve its efficiency, scalability, and security. EIP-1559, a gas fee burning mechanism, was implemented in July 2021, while EIP-4361 was proposed to introduce a transition from Proof of Work to Proof of Stake. These upgrades are expected to significantly enhance Ethereum’s performance and attract more developers to build on the platform.

Solana’s Network Challenges and Solutions

Solana, with its swift transaction speeds and low fees, has experienced some network congestion issues. However, the team behind it is continuously working to improve the network through various upgrades, such as the recent introduction of Solana Verifiable Delay Function (VDF) and the upcoming upgrade to the Falcon network.

Both ChatGPT and Perplexity provided the same responses when asked which cryptocurrencies will do the best in 2024. They emphasized how ecosystems like Ethereum and Solana are seeing an increase in Total Value Locked (TVL), suggesting these platforms will remain significant in the blockchain market.