January’s crypto hotlist: Top 3 picks

The cryptocurrency market is set to start 2025 with remarkable momentum, riding on a wave of optimism that shaped much of 2024. The approval of spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) was a key catalyst, drawing massive capital inflows and capturing the attention of institutional investors across the globe.

This surge in confidence, bolstered by blockchain’s growing integration into traditional finance (TradFi) and regulatory clarity under the pro-crypto Trump administration, propelled Bitcoin to a historic milestone—crossing the $100,000 mark.

While Bitcoin continues to dominate the spotlight, the broader market is gaining momentum. Solana (SOL), XRP, and Sui (SUI) stand out as January’s top picks, each uniquely positioned to capitalize on the evolving crypto landscape.

Solana (SOL)

Solana’s rapid adoption in global markets has secured its place as a top cryptocurrency to watch this year. Brazil’s approval of a spot Solana ETF and the active trading of eight Solana-based exchange-traded products (ETPs) in Europe highlight its institutional appeal.

The momentum is expected to expand further into the U.S. market, with several leading investment firms already filing for spot Solana ETFs with the Securities and Exchange Commission (SEC).

Solana’s robust developer ecosystem is another factor bolstering its appeal. For the first time since 2016, Solana outpaced Ethereum in new developer growth, with an 83% year-on-year increase in 2024, according to Electric Capital.

In total, 7,625 new developers joined Solana’s ecosystem, compared to 6,456 for Ethereum. This surge in developer activity has fueled an expanding ecosystem of projects on the Solana network. In fact, Solana briefly surpassed Ethereum in daily network activity on multiple occasions in 2024, including memecoin activity in March and daily fee generation in October.

With institutional interest ramping up and a robust developer community driving innovation, Solana is positioned to make significant strides next year.

XRP

XRP is surging on the back of several key developments that have bolstered confidence in its ecosystem. In December 2024, Ripple’s RLUSD—a stablecoin pegged 1:1 to the U.S. dollar—received final regulatory approval.

Adding to the optimism, the re-election of Donald Trump has injected new energy into the cryptocurrency market, with XRP emerging as one of the biggest beneficiaries.

At the center of this confidence is Trump’s nomination of pro-crypto advocate Paul Atkins as the incoming SEC Chair, a move widely expected to deliver long-awaited regulatory clarity for Ripple Labs, whose legal battle with the SEC has loomed over XRP since 2020.

The timing of the SEC’s appeal, scheduled for January 15—just days before Trump’s inauguration—has heightened expectations.

With Atkins set to take over, many believe XRP could be freed from its regulatory overhang. This sentiment has already propelled XRP’s price from $0.50 in November to $2.50, driven by optimism surrounding the lawsuit’s outcome, its relisting on major exchanges like Robinhood, and bullish market sentiment following Trump’s election victory.

Looking ahead, XRP’s prospects continue to strengthen. The potential approval of a spot ETF, supported by filings from asset managers like WisdomTree and Bitwise, could attract significant institutional investment in 2025.

Combined with its historical resilience, strong partnerships, and a revitalized regulatory environment, XRP is well-positioned for significant growth, making it a top pick for the year ahead.

Sui (SUI)

Sui has established itself as one of the fastest-growing Layer 1 blockchain networks, outpacing even Bitcoin in 2024. Since its launch in May 2023, Sui has achieved remarkable growth, reaching a market cap of $13 billion in just 18 months. This performance has earned it comparisons to Ethereum as “the next Ethereum” and a potential “Solana killer.”

Sui’s rapid adoption is evident in its underlying metrics, particularly its total value locked (TVL), which surged to an all-time high of $1.84 billion in December 2024—a clear indication of its traction in DeFi. ‘

Sui has maintained consistent TVL above $1 billion since November, reflecting robust capital inflows and sustained user engagement. Daily decentralized exchange (DEX) activity also hit a record $466 million in December, pushing cumulative DEX volume beyond $35 billion.

One major catalyst for Sui in 2025 is the launch of the SuiPlay0X1, a Web3 handheld gaming device that could potentially offer a pathway to mainstream adoption, cementing Sui’s position as a leader in gaming and attracting more users to its ecosystem.

Sui’s growth trajectory is also fueled by strategic partnerships. In November 2024, it collaborated with $1.7 trillion asset manager Franklin Templeton to explore innovative use cases. It also partnered with Babylon Labs, Lombard, and Cubist to integrate Bitcoin liquidity, unlocking programmable Bitcoin capabilities within its ecosystem.

Adding to its appeal, Sui has expanded its functionality through key wallet integrations. Recent integrations, including Phantom Wallet and Backpack, have further enhanced Sui’s accessibility and user appeal.

As its fundamentals strengthen and market utility expands, Sui is poised to capitalize on its momentum in 2025, setting the stage for continued growth and solidifying its reputation as one of the most promising assets to watch.

Despite the inherent volatility in the cryptocurrency market, the outlook for Solana, XRP, and Sui remains highly optimistic as we enter 2025. Investors seeking opportunities in the digital asset space should consider these projects while remaining mindful of the risks involved in this dynamic market.

Featured image via Shutterstock

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