The cryptocurrency market has seen recent growth with Bitcoin (CRYPTO:BTC) leading the way in setting a new all-time high of over $88,000. This rally sparked widespread enthusiasm, driving up prices and sparking new interest in crypto.

Although Bitcoin has grabbed the headlines, some other cryptocurrencies have even greater upside potential as they still have room to catch up with Bitcoin’s gains.

For those looking to position their portfolios for the next wave of crypto growth, here are three digital coins to consider. These assets have demonstrated significant potential and could offer some of the most exciting opportunities in the market today.

1. Ethereum

The first choice is Ethereum (ETH 1.48%)which remains the second most valuable cryptocurrency by market capitalization and the backbone of decentralized finance (DeFi).

Despite its importance, Ethereum is lagging the broader market rally for most of 2024. As of the end of October, it had only risen a measly 7% year to date. However, it has recently gained new momentum, jumping nearly 33% since the start of November.

Yet even with these recent gains, Ethereum’s price remains 30% below its all-time high, suggesting considerable upside potential. Beyond the price, its fundamentals remain solid.

As the leading platform for DeFi protocols, Ethereum benefits from a steady influx of value and growing interest in tokenization, an innovation that allows traditional assets like real estate and stocks to be digitally represented on the blockchain.

These factors create a strong foundation for Ethereum’s potential to not only regain its previous highs, but also reach new all-time highs as adoption deepens and this bull cycle progresses.

2. Aave

Next is Aave (AAVE 1.45%)one of the most important players in the DeFi ecosystem. Known as a decentralized lending and borrowing platform, Aave functions as a “digital bank” where users can lend their assets to earn a return or borrow against them.

Deployed across multiple blockchains, Aave’s cross-chain compatibility and established reputation have made it a crucial part of DeFi infrastructure.

Aave’s token recently traded around $190, well below its 2021 all-time high of $572. As more capital flows into the crypto ecosystem, it stands to directly benefit from the surge in interest in decentralized finance.

And with the Federal Reserve By moving towards lower interest rates, DeFi protocols like Aave, which offer higher returns than traditional financial products, are poised to become even more attractive to investors looking for better returns in a low interest rate environment.

Another catalyst for Aave could be the activation of a “fee switch.” If implemented, this feature would distribute a portion of the protocol’s revenue among AAVE token holders, creating another revenue stream for investors and aligning token incentives with the overall growth of the platform.

3. Aerodrome

Finally, we have Aerodrome (AERO -2.55%)a decentralized exchange (DEX) that has become one of the most productive and widely used protocols on Base, a blockchain developed by Global Coinbase. While there are many other DEXs out there, it’s Aerodrome’s relationship with Base and its innovative design that makes it a worthwhile investment today.

Base has quickly gained popularity since its launch in August, but it does not have its own native token. This absence positions Aerodrome as the closest indicator of Base’s growth, providing investors with indirect exposure to the expanding blockchain ecosystem.

Although it has already made notable gains, the Aerodrome token still appears to have room for growth, especially considering several promising factors.

Above all, the protocol continues to set new records in terms of metrics such as revenue, user activity, and transaction volume.

And it is entering a deflationary phase. Initially, the protocol’s tokenomics were designed with high greenhouse gas emissions to drive growth, but emissions are now poised to decline, potentially increasing the scarcity and value of the token.

So, as Base continues to grow, Aerodrome’s role as a leading liquidity platform is expected to become even more valuable. For investors, this creates a unique opportunity to capitalize on the development of Base whilst also benefiting from the increasing use of the airfield and falling emissions.