5 Most Volatile Cryptocurrencies in 2024

• The cryptocurrency market has been on a volatile trend of late with tokens often experiencing dramatic price swings.
• This volatility saw the global cryptocurrency market touch $3 trillion earlier this month to be at $3.24 trillion on 21 November.
• This is a 3.11% increase over the past 24 hours, according to CoinMarketcap.

The cryptocurrency market has been on a volatile trend of late with tokens often experiencing dramatic price swings. For investors and traders, this volatility can present both opportunities and risks. In 2024, several cryptocurrencies have captured attention for their unpredictable price movements.

The volatility in the crypto market was spurred by the result of US elections, which saw Donald Trump’s administration coming back to power for the second time. Since then, the market not only touched $3 trillion earlier this month but eventually reached $3.34 trillion as of 21 November.

Coin Cryptoverse explores the 10 most volatile cryptocurrencies this year and breaks down the reasons behind their fluctuations. These tokens are high-risk, high-reward investments that could make or break your portfolio.

Bitcoin (BTC)

Undoubtedly, the biggest gainer of the US elections saw the leading token break its ATH two times in a single month, represent a price swing of over 20-30% in a single week.

Its volatility stems from its status as a hedge against inflation, regulatory concerns, and large institutional moves. In 2024, Bitcoin has seen substantial swings due to renewed interest from institutional investors, speculative trading, and global macroeconomic factors like inflation and interest rates.

Dogecoin (DOGE)

Dogecoin was the next most volatile crypto as gained momentum since President-in-waiting Trump announced the formation of the Department of Government Efficiency (DOGE). Trump announced he is appointing Elon Musk and Vivek Ramaswamy to lead DOGE (in reality, a commission to make recommendations), both of whom will volunteer their time.

As a result, DOGE’s price movement witnessed 40-60% fluctuations aftermarket events. Even though the price movements were heavily influenced by Musk’s tweets, it prices also fluctuated on the basis of social media trends.

Shiba Inu (SHIB)

As a meme coin, Shiba Inu’s volatility is tied to social media trends, celebrity endorsements, and speculative hype. Its price is prone to large swings based on market sentiment, especially when influencers or large holders move their positions.

Investors in meme coins like SHIB witnessed wild price swings by 30-50% within days, it also benefitted by social sentiment and internet culture rather than fundamental value.

Solana (SOL)

Solana’s network outages, rapid growth in DeFi projects, and market speculation have contributed to its high volatility. Solana’s price swings also stem from its competition with Ethereum and its reputation for being a “high-speed” blockchain, which can fuel both optimism and uncertainty.

While Solana has high potential, its volatility is tied to investor sentiment about network stability and its ability to scale faster than Ethereum. As a result, its price swung wildly between 25-40% within a few weeks, resulting in many booking profits in the crypto bull run.

XRP (XRP)

XRP, the native token of the Ripple network, has been known for its significant price volatility, driven by a combination of market sentiment, regulatory news, and the evolving landscape of digital payments.

In 2024, XRP cryptocurrency has experienced dramatic price swings, with sudden surges often linked to updates on its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

Additionally, XRP’s price movements are influenced by its position in the cross-border payments space, with shifts in adoption and competition from other blockchain solutions further fuelling volatility.

As a result, XRP’s price swung wildly to result in its investors amassing gains of 111% over the past month.

While cryptocurrencies are inherently volatile, and the tokens listed above have shown significant price fluctuations in 2024 due to factors like network updates, speculation, community sentiment, and broader market conditions.

While these tokens present high-reward opportunities for investors, they also come with a level of risk that must be carefully managed. Always conduct thorough research and consider the risks before diving into the crypto market.