The global cryptocurrency market has enjoyed a fruitful couple of months since the end of 2023, as Bitcoin, Ethereum and many other coins entered major bullish runs. The month of March, 2024 has been no different, as major coins posted modest returns, while smaller projects returned double and triple digit growth.
As the month of March draws to a close, what do current market conditions mean for the crypto market going forward and is the bullish momentum expected to keep up in the long run?
The Crypto Fear and Greed Index is an important metric to consider, which shows a value of 79/100, indicating considerable greed among market participants.
The opinions regarding the ability of the crypto market to sustain bullish momentum are mixed. While some analysts are bearish and expecting a recession to hit most of the global economy, others are more optimistic and citing the Ethereum Spot ETF licensing in late May as a possible catalyst to boost crypto prices further.
The mainstream adoption of crypto has been accelerating in recent years, which has come in conjunction with the advent of AI in online gambling and adult industries. As niche AI applications, such as undress AI becomes more popular, smaller crypto projects, such as LUSH and enqAI, also grow in prominence on the market.
The issues of censorship and content controls regarding the use of AI in the adult industry move into the mainstream, AI and Web3 model content providers, such as LUSH, and decentralized, censorship-free AI platforms, such as enqAI are among the blockchain projects revolutionizing the way individuals consume adult content on the web.
Such projects are especially prone to rapid trend shifts on the crypto market and are often among some of the highest gainers during a crypto bull run.
Top 5 Gainers
The month of March managed to keep the bullish momentum of January and February, which saw the market reach new heights, as investors cashed out on some of their gains and reenter the market. The bullish momentum is likely to sustain in the near term, as the end of May promises another tailwind for the market in the form of Ethereum Spot ETFs.
Core (CORE) +365%
Core is a relatively new addition to the crypto market, having completed its ICO in February of 2023. The coin lost most of its market value, before bouncing back a year later in March.
While the past 30 days of trading has returned over 350%, the overall returns since February are more lucrative at over 500%.
While a smaller crypto project, market activity surrounding Core has risen considerably and investors will be hoping for sustained liquidity on the market in the coming months. However, a short-term correction is highly likely, as investors cash out on their gains and prepare for their next moves.
The market cap of Core currently stands at $2.8 billion, placing CORE as one of the fastest-growing cryptos in recent months.
Dogwifhat (WIF) +193%
A recent meme coin, Dogwifhat, or WIF, has bursted onto the scene in recent months, gaining in the triple digits and reaching over $3 billion in market capitalization.
The resurgence of meme coins further points to a high degree of greed on the market, as investors are optimistic regarding the valuations of a variety of crypto projects, which prompts them to pump meme coins for quick returns. Dogwifhat does not have a particularly long history on the market, which makes it an exceedingly risky investment.
Overall, WIF has returned a whopping 1,000% since late February alone, making it the single best-performing crypto of the past 3 months. Investors seeking to grab some WIF to add to their portfolios should be aware of the risks involved with investing in a cryptocurrency with such explosive growth in a short period of time.
Toncoin (TON) +88%
Toncoin is Telegram native cryptocurrency that has risen to prominence over the recent months of trading. TON has gained over 85% since the start of March, which places it among the top performers of the month.
Since the start of 2024, TON has more than doubled in market value, reaching a market capitalization of over $17 billion. Toncoin’s rise in prevalence has strengthened its investor community and as Telegram grows in popularity around the world, as does TON on the crypto market.
However, after such rapid growth, a price correction seems imminent in the short term.
Toncoin’s growth in popularity is not expected to slow down in the near future. Therefore, investors looking to add TON to their portfolios can do so once the market corrects itself and traders cash out on their gains.
Maker (MKR) +80.50%
Maker has been one of the top-performing cryptocurrencies of recent months and March has also proven to be fruitful for MKR holders, with returns over 80%.
When we look at Maker’s performance over the past 12 months, it becomes more impressive, as the coin has returned over 440% over the period. Maker’s market capitalization has reached over $3.4 billion and now trades over the $3,700 price point, which also makes it one of the most expensive cryptocurrencies on the market today.
Investors that are looking to hold MKR for the long term could be better off with other alternatives, as MKR has already increased in value considerably and further major price boosts do not seem as likely in the short term. However, once a correction occurs, Maker could be a solid option for bullish traders to add to their portfolio.
Solana (SOL) +40%
One of the most popular cryptocurrencies on the market, Solana has performed admirably since the last quarter of 2023 and has started 2024 out quite strong.
March has proven to be a particularly successful month for SOL investors, as the coin gained 40% in market value, which is the highest rate of return among the top 25 cryptocurrencies in terms of market capitalization. This puts Solana’s annual returns at over 770%, placing Solana among the top performers over the period.
Solana is among the cryptocurrencies that benefits from mainstream adoption, as it is popular in online transactions, including crypto gambling, which attracts more attention from the market.
If the crypto market continues its bull run in the near future, the price of Solana is likely to maintain positive momentum as well.
Top 5 Losers
March has proven to be a mixed bag for some crypto projects. While the likes of CORE and WIF posted triple-digit growth, others, such as ORDI and Kaspa, were less successful.
However, it must be noted that among the losing coins of March are cryptocurrencies that have enjoyed considerable growth since the start of 2024 and many of them remain as net gainers over the same period.
ORDI (ORDI) −29.80%
ORDI tops the list as the worst-performing crypto of the month of March, losing nearly 30% of market value over the period. ORDI’s long-term performance is difficult to measure, as the coin has been available on the market for less than a year.
While the performance of the coin may seem discouraging for new investors, changing market conditions could alter the outlook regarding the coin. As the rest of the market goes through a correction phase, the likes of ORDI could be preparing for a bullish run in the coming months.
It must be noted that ORDI reached the high of over $90 towards the end of February, before dropping lower than $60. This gives investors the reason to remain optimistic regarding the long-term prospects of the project.
Kaspa (KAS) −27.13%
Similarly to ORDI, Kaspa has also been among the top gainers of the past few months and has since dropped off significantly.
The month of March has proven difficult for KAS holders, as the coin lost over 27% of its market value over the period. However, due to the recent market activity surrounding the coin, investors are likely to remain optimistic about the long-term growth prospects of Kaspa, which can be triggered by changing market trends and trader sentiment.
However, when we look at Kaspa’s annual performance, the returns of the past 12 months amount to 225%, which offsets the recent drop in value and indicates that this decline is temporary and is unlikely to affect the coin in the long term.
Celestia (TIA) −27.13%
Celestia has been among the top performing cryptocurrencies in recent months, gaining over 500% since its ICO in late October of 2023, rising to as high as $20 in February 2024, before falling lower in March.
This sell-off is to be expected, as investors cash out on their gains and the market stabilizes.
As the price of Celestia drops, it may become more attractive for new investors. The broader market consensus is likely to boost the long-term returns of TIA, which currently has a market capitalization of over $2 billion.
However, it must be noted that short-term sell-offs are likely to affect Celestia throughout April, and investors should be prepared for lower valuations, at which point the coin could become a more attractive option to add to their portfolio.
Arbitrum (ARB) −26.60%
Arbitrum is a coin that has a relatively longer history of trading on the market, having finalized its ICO in May 2023. This gives traders almost a year’s worth of price history to analyze, which shows that ARB has returned over 25% in gains since its debut.
However, the month of March has not been so kind for Arbitrum investors, as the coin lost over 26% of its market value over the period. This can be attributed to the relative novelty of the coin, as well as the focus of the broader market on the likes of Bitcoin, Ethereum and Solana, as market sentiment has been slow to react to changing fortunes on the crypto market throughout 2023.
The start of 2024 has been considerably better for Arbitrum, as the coin rallied to over $2.2 by mid January, before losing some of its ground as investors sold their holdings to lock in their gains. Going forward, Arbitrum is an interesting coin to watch. However, investors should be prepared for some bearish momentum in the near term for the sell-off to correct its market price.
Cardano (ADA) −21.20%
Cardano is among the most popular cryptocurrencies on the market and its mainstream adoption rates have also remained strong over the past few years.
However, ADA is not immune from high levels of market volatility, which has resulted in a loss of over 20% of its market value throughout March. Over the past year, Cardano has gained over 45%, which is considerably lower than other cryptocurrencies with a comparable market capitalization figure, which currently stands at $21 billion.
However, Cardano’s long-term prospects are unlikely to be greatly affected by its performance across March, as shifting trends on the crypto market are quite common. Future tailwinds can also further boost the performance of the coin, as investors shift their focus to other major currencies.
Conclusion
While the overall consensus was quite positive in March, the long-term sustainability of such explosive growth raises some questions from market insiders. The upcoming potential ETH tailwind has been long-awaited by the market, although a price correction is more than likely in the short term.
The high value shown by the Crypto Fear and Greed Index indicates that such market sentiment is unlikely to last in the long run, which is why new traders are advised to proceed with caution when picking which cryptocurrencies to invest in.
Whether the crypto market manages to continue the bullish run in the long run remains to be seen. However, the short-term momentum has not slowed down over the course of March.
Overall, the long-term consensus remains strong, but the road ahead is unlikely to be smooth, as most major economies struggle with growth and geopolitical tensions persist throughout the world.
