- The cryptocurrency market is down, with Bitcoin under $96,000.
- Ripple, Solana, and Shiba Inu are top cryptocurrencies to watch due to their potential for growth in 2025.
The cryptocurrency market continues to experience turbulence as major assets record declines. Bitcoin (BTC) is still hovering around $95,000, while the total market capitalization of all cryptocurrencies went up by 1.5% in the last day to $3.41 trillion. This is the second market correction in six weeks.
The market decline can be attributed to recent events in the United States. The December 2024 inflation rate reached 2.7%, making the Federal Reserve more conservative in implementing monetary policy. The central bank trimmed the interest rate outlook for 2025 to two from the earlier expected three, which could have rattled cryptocurrency investors.
Furthermore, the US employment situation has improved, boosting expectations of an early rate cut this year. Inflation and the stability of the labour market have created new risks that have led to the latest market adjustments.
Cryptocurrencies to Watch
Despite the current downturn, several cryptocurrencies show potential for recovery or growth in the near term.
Ripple (XRP)
XRP was one of the best performers in 2024. After a partial win in its legal struggle against the SEC, XRP hit $2 for the first time since 2014. As disclosed by CNF, Brad Garlinghouse, CEO of Ripple, is hopeful for 2025, stating that there is real progress toward the token’s usage in the real world.
Ripple’s XRP appreciation in the last quarter of 2024 was quite dramatic, with Chris Larsen, the co-founder of Ripple, reportedly increasing his wealth by more than $6 billion. Recent wins in the legal battle and acquisitions, such as the acquisition of Standard Custody, make Ripple set to achieve more.
With a focus on stablecoin and its launch of RLUSD, Ripple is in a strong position to expand its presence in the cryptocurrency market. Ripple’s market influence in the fintech industry may lead the XRP to hit a new all-time high by the end of 2025, according to market analysts.
Solana (SOL)
Solana has been a strong performer since its lows of early 2022. The cryptocurrency reached a new all-time high in November 2024 due to its growing network. Some of Solana’s popular projects include memecoins like Pepe (PEPE) and Bonk (BONK), which have played a role in the platform’s increasing adoption and value.
The market has also shown increasing interest in Solana, and it expects the approval of Solana-based ETFs in the U.S. before January 2025. Big firms like VanEck, Grayscale, and Bitwise are the most active applicants, and decisions are likely to be made in the current month. Brazil has already paved the way for Solana ETFs with the approval of the first one, as outlined in our recent blog post.
Shiba Inu (SHIB)
Shiba Inu remains a favourite among crypto enthusiasts. Although the asset has been unable to gain considerable momentum in the recent past, it continues to have a loyal following. The adoption of Shiba Inu’s TREAT token, which is set to happen on January 14, 2025, maybe the game changer for the token. As reported by CNF, TREAT will be a governance token of the Shiba Inu ecosystem that grants users special privileges and opportunities for payments in the digital world.
Shytoshi Kusama, the lead developer of Shiba Inu, also pointed out that TREAT is crucial for the larger objectives of decentralization and scalability of the ecosystem. The token’s position in the development of the network, especially when it comes to Web3, blockchain, and AI, makes Shiba Inu well poised for a comeback in 2025. Analysts predict SHIB to rally in the current year due to the strong backing of its community.
