Bitcoin Dominance Dips: Top 10 Altcoins for Beginners to Watch in December 2024

Bitcoin's dominance has decreased to 55.81%, down from 61.53% in November 2024, signaling the rise of the altcoin season. Over 75% of the top 100 altcoins have consistently outperformed Bitcoin, marking a shift in the crypto market. This article dives into the top 10 altcoins for beginners to consider in December 2024 as the altcoin market heats up.

Understanding Bitcoin Dominance

Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization represented by Bitcoin. A decline in Bitcoin dominance often signals the start of an "altseason," a phase where altcoins outpace Bitcoin in terms of returns. As of now, Bitcoin still holds over half of the total market value, but with the current dominance at 55.81%, capital is increasingly flowing into altcoins.

During altseasons, altcoins typically outperform Bitcoin, with over 75% of the top 100 altcoins showing gains in the past 90 days. This trend presents opportunities for traders to shift their focus from Bitcoin to high-liquidity altcoins, potentially reaping greater returns.

Factors to Consider Before Buying Altcoins

For beginners looking to make the most of altseasons, it's essential to evaluate altcoins based on these five key factors:

• Fundamental Use Case and Utility Altcoins with real-world applications and solid use cases are more likely to retain long-term value. Tokens like Polygon (MATIC) and Chainlink (LINK) have strong utility—Polygon offers a layer-2 scaling solution on Ethereum, and Chainlink connects smart contracts with real-world data.

• Market Capitalization and Liquidity Large-market-cap altcoins such as Ethereum (ETH) and Binance Coin (BNB) are considered safer investments, though they often offer moderate growth potential. Smaller or mid-market-cap altcoins may present higher risks but also higher reward potential, like Ripple (XRP) and meme coins on Base.

• Development Activity and Team Transparency An active development team and clear project goals are indicators of a strong altcoin investment. Projects like Cardano (ADA) and Optimism (OP) are well-known for their transparent development and rigorous academic approaches.
• Community Support and Adoption A strong and engaged community can drive an altcoin's success. Cryptos like Solana (SOL) and Dogecoin (DOGE) have gained traction due to their vibrant online communities and practical use cases.

• Risk Management: Volatility and Regulation Altcoins are often more volatile than Bitcoin, so it's important to assess historical price movements, regulatory hurdles, and potential risks before investing. XRP, despite ongoing regulatory challenges, continues to see strong demand for cross-border payments.

Top 10 Altcoins to Buy in December 2024

1.Solana (SOL)

Solana has been gaining ground as a layer-1 competitor to Ethereum, outperforming it in key metrics like decentralized exchange volume and protocol revenue. The ideal buy zone is between $200 and $210, with a target price of $359.

2.Ethereum (ETH)

Ethereum remains a strong contender in the altcoin market, especially in the short term. With a cup and handle formation on the weekly chart, the buy zone is between $3,200 and $3,600, with a target of $7,000.

3.Aptos (APT)

Aptos is a scalable blockchain platform that has formed a cup and handle pattern on the price chart. The buy zone is between $11.37 and $13.50, with a cycle target of $28.37.

4.Toncoin (TON)

Toncoin is seeing strong growth, with a W formation on the weekly chart. The ideal buy zone is between $4.091 and $6, with a resistance at $8.288 and a target of $12.791.

5.Kaspa (KAS)

Kaspa is a layer-1 blockchain showing promise, with a buy zone between $0.13506 and $0.15397. The token could reach resistance at $0.20009, with a cycle target of $0.29098.

6.Injective (INJ)

Known for its use in decentralized finance and AI, Injective is in the buy zone between $22.94 and $32.39, with a cycle target of $77.41.

7.Render (RNDR)

Render is a project related to decentralized 3D rendering, with a buy zone between $6.6178 and $8.4950. The cycle target is $19.9836, with resistance at $13.6330.

8.Brett (BRETT)

A meme coin based on the Base network, Brett (BRETT) could see significant gains this cycle. The buy zone is between $0.15 and $0.18, with a target of $0.34559.

9.Gigachad (GIGA)

Another meme coin, Gigachad (GIGA), could extend its gains in this market cycle. The buy zone is under $0.042699, with a cycle target of $0.121855.

10.Arweave (AR)

Arweave, a decentralized data storage protocol, is gaining attention due to its potential use in both AI and DeFi sectors. The buy zone is between $20.98 and $49.55, with a target of $100.

Strategic Considerations and Risk Management

The total market capitalization of cryptocurrencies, excluding Bitcoin, is projected to surge to $4.47 trillion, which could lead to 2X gains for a portfolio containing the altcoins listed above. However, factors such as Bitcoin's performance, institutional interest, and capital inflow will heavily influence the market.

For traders, this altseason presents an opportunity for significant returns, with the potential for 2X to 3X gains based on the buy zones and market projections.

By carefully selecting the right altcoins and managing risk, beginners can capitalize on the altcoin season and position themselves for success in 2025.