Introduction
Throughout 2024, Bitcoin fluctuated with the impact of global economic and market conditions. Bitcoin, which rose as high as $73,000 in the January-March period, fell from $70,000 to $49,000 in the July-August period due to high interest rates and economic uncertainties. In the September-October period, Bitcoin reached $73,000 again with the increase in liquidity flow and the interest of institutional investors. In the November-December period, Bitcoin reached a historic peak of $108,000, especially as a result of the US presidential election, countries’ economic decisions and increased market confidence. During this period, Bitcoin’s price increase was more than 50%, creating a positive sentiment in the market. However, this uptrend was characterized by high volatility and speculative movements. 2024 was a year in which Bitcoin both tested investor confidence and offered great opportunities.
While 2024 was such an eventful year for Bitcoin, this article examines 5 projects that declined when Bitcoin was down and reacted quickly upwards when Bitcoin started to rise.
Projects
In 2024, Hedera, Ripple, Stellar, Algorand and Ethena closely followed Bitcoin’s uptrends and downtrends, demonstrating a high sensitivity to market movements.
The table below shows the price change analysis of these projects that are highly correlated with the Bitcoin price in 2024. These projects have both moved in parallel with Bitcoin during periods of price decline and reacted rapidly upwards during periods of price increase.
| Rank | Name | Symbol | Bearish Period (Jul-24 to Aug-24) | Change (%) | Bullish Period (Nov-24 to Dec-24) | Change (%) |
|---|---|---|---|---|---|---|
| 1 | Bitcoin | BTC | 70,000 → 49,000 | -30.00% | 67,834 → 108,366 | 59.75% |
| 16 | Hedera | HBAR | 0.079 → 0.045 | -42.88% | 0.043 → 0.296 | 589.85% |
| 4 | Ripple | XRP | 0.658 → 0.432 | -34.45% | 0.503 → 2.447 | 386.58% |
| 18 | Stellar | XLM | 0.113 → 0.076 | -32.71% | 0.091 → 0.430 | 374.36% |
| 41 | Algorand | ALGO | 0.163 → 0.094 | -42.28% | 0.110 → 0.431 | 293.33% |
| 40 | Ethena | ENA | 0.556 → 0.225 | -59.53% | 0.338 → 1.246 | 268.80% |
Analysis of Projects
- Hedera (HBAR)
November-December Performance: It was the project with the strongest response, up 589.85%.
Causes:
- Speculative purchases due to low price level.
- Hedera’s unique DLT (Distributed Ledger Technology) solutions for institutional investors.
- Increased use of NFTs and micropayments.
- Ripple (XRP)
November-December Performance: Noteworthy with an increase of 386.58%.
Causes:
- The developments regarding the SEC after the US Presidential elections and the resulting increase in the likelihood that the litigation process with the SEC will be concluded in favor of Ripple have increased confidence in the market.
- Increased adaptation of international payments and financial systems.
- Increased trading volumes during the Bitcoin rally.
- Stellar (XLM)
November-December Performance: Up 374.36%.
Causes:
- Faster and cost-effective solutions for interbank transfers.
- Stellar is a payment infrastructure that works in tandem with Bitcoin.
- Growth in the developer ecosystem.
- Algorand (ALGO)
November-December Performance: 293.33% increase.
Causes:
- Offering sustainable and environmentally friendly solutions in blockchain technology.
- Growth of Algorand-based DeFi (decentralized finance) projects.
- Increased institutional investments.
- Ethena (ENA)
November-December Performance: increased by 268.80%.
Causes:
- Becoming a central focus of rising altcoin rallies.
- Ethena’s advanced algorithmic stability solutions.
- High speculative demand.
General Evaluation
In 2024, the projects that were highly correlated with Bitcoin had remarkable characteristics in terms of both market dynamics and investor behavior. The main reasons why these projects closely follow Bitcoin’s uptrends and downtrends and move strongly correlated can be listed as follows:
Speculative Movements:
- When Bitcoin rises, investors turn to other big projects.
- Gaining popularity of projects that offer fast and high earning potential.
Ecosystem Size:
- Projects with strong and reliable infrastructure move in parallel with Bitcoin’s leadership.
- Projects such as Ripple, Hedera and Algorand offer a large user base and enterprise functionality.
Corporate Interest:
- Large investors pouring capital into projects with similar characteristics to Bitcoin.
- Hedera, Ripple and Algorand stand out in institutional use.
Technological Developments:
- Adoption of blockchain technologies compatible or complementary to Bitcoin.
- The growing use of projects such as Stellar and Ethena in banking and financial systems.
Disclaimer
This content has been prepared by the Darkex Research Team for informational purposes only. It does not constitute investment advice. All risks and responsibilities arising from your investment decisions are solely your own.
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