Crypto tokens have once again captured widespread attention this year following the remarkable surge of Bitcoin (BTC-USD) to a historic peak surpassing \(72,000. Concurrently, **Ethereum** (**ETH-USD**) has been experiencing a similar upward trajectory, breaching the \)4,000 mark for the first time since 2021 before experiencing a slight decline.

Galaxy Digital, a prominent crypto company, remains optimistic about the ongoing positive momentum in the market. Meanwhile, Coinbase (NASDAQ: COIN) has observed a surge in trading volumes driven by robust performances across various cryptocurrencies.

Furthermore, an increasing number of countries are turning to crypto tokens as a hedge against local currency devaluation. Noteworthy examples include Vietnam and the Philippines, which are at the forefront of this trend.

These factors collectively contribute to a bullish outlook on crypto tokens. While meme coins and altcoins continue to offer significant returns that may attract novice investors, it is advisable to prioritize established performers in volatile markets. These foundational crypto assets have withstood the test of time, boasting solid use cases and unique functionalities that position them as leaders in the industry.

Bitcoin (BTC-USD)

Bitcoin briefly surged above $72,000 recently, generating excitement as it achieves new all-time highs. Year-to-date, the cryptocurrency has soared by 62%, outperforming traditional asset classes. A key driver behind this growth is the growing optimism surrounding the approval of spot Bitcoin ETFs. Regulators, previously cautious, have greenlit 11 spot Bitcoin ETFs in January, signaling a significant shift in their stance towards Bitcoin and the broader crypto sphere.

Despite Bitcoin’s status as a digital equivalent of gold, its adoption remains gradual due to existing challenges. The approval of spot Bitcoin ETFs enhances Bitcoin’s credibility, previously lacking in other avenues.

Moreover, the upcoming Bitcoin halving event scheduled for April 2024 is on the horizon. This event, which halves the cryptocurrency’s mining rewards, slows the creation and circulation of new Bitcoins in the market, historically leading to an increase in Bitcoin’s value. Therefore, investors should monitor this event closely.

Ethereum (ETH-USD)

Ethereum’s performance this year mirrors Bitcoin’s success, with its native coin rebounding from a low of \(1,460 to surpass \)4,000, reflecting broader market sentiments. With a substantial market capitalization of $477 billion, Ethereum holds the position of the second-largest cryptocurrency after Bitcoin. However, these assets serve distinct purposes, making portfolio diversification beneficial for crypto investors.

While Bitcoin primarily functions as an alternative store of value akin to gold, Ethereum serves as a platform for developing dApps, smart contracts, and NFTs. Ethereum’s recent upgrade, “The Merge,” significantly reduced its energy consumption, addressing a significant criticism faced by blockchain technologies—their environmental impact.

Furthermore, Ethereum’s upcoming DenCun upgrade, scheduled for March 13, is poised to enhance its appeal by introducing proto-danksharding (EIP-4844). Such upgrades often lead to price increases for the coin and tokens associated with the network.

BNB (BNB)

BNB (BNB-USD), the native coin of Binance, the world’s largest cryptocurrency exchange, completes this trio. Despite regulatory challenges faced by the exchange, BNB continues to rise steadily, boasting a 73% increase in 2024 with no signs of slowing down.

The Binance ecosystem, particularly within the DeFi sector, relies heavily on the BNB cryptocurrency. Additionally, regular coin burning practices reduce the token’s supply, contributing to BNB’s deflationary tokenomics.

The integration of new projects, such as incorporating Aave (AAVE-USD) into the BNB Chain, further enhances the ecosystem’s attractiveness.

Despite Binance’s exit from certain regions like Nigeria and Russia, the exchange is expanding its presence in countries like Georgia, Thailand, and Indonesia. This strategic move ensures continued growth and expands BNB’s appeal among cryptocurrencies.

Notably, on the publication date, Faizan Farooque did not hold any positions (directly or indirectly) in the securities mentioned in this article. The opinions expressed are solely those of the author, in accordance with the InvestorPlace.com Publishing Guidelines .

Faizan Farooque, a contributing author for InvestorPlace.com and various financial platforms, brings years of expertise in stock market analysis, previously serving as a data journalist at S&P Global Market Intelligence. His mission is to empower everyday investors in making well-informed decisions regarding their portfolios.