The Best Altcoins to Buy for 2025 — A Personal Review
2024 will soon be coming to an end, and what a year it's been for crypto thus far!
From a successful Bitcoin halving event, to the implementation of Ethereum's Dencun upgrade, 2024 has seen a number of monumental updates within the world of crypto.
But as is usually the case when each year comes to an end, the crypto space is eagerly anticipating what lies in store for the following year, and right at the top of the list is a strong desire to know what Altcoins will perform well, and whether there will be another bull run.
Whilst it is impossible to know what Altcoins will do well (and to what extent), there are certain indicators that can point towards certain cryptocurrencies performing well in the future. For this reason, the author of this article has come up with a list of 3 Altcoins that have big growth potential, and which could potentially skyrocket in 2025.
But before we delve into these Altcoins, this article will first examine the factors that have been used to determine this list. Let's dive right in!
Things That Could Positively Impact Altcoin Growth
When it comes to the future performance of an Altcoin, there are certain things that, if met, can point towards an Altcoin performing well under the right circumstances.
Below are some of the factors that have been used to evaluate the 5 Altcoins that will be examined later on in the article.
Strong tokenomics
The first indicator that can point towards an Altcoin performing well is whether it has strong tokenomics.
Tokenomics, put simply, is the economic model that underpins a cryptocurrency's value proposition from an investment perspective. In order to incentivise short-term and long-term investors, most cryptocurrencies have mechanisms that govern their supply, distribution, incentives, and value in the market.
When it comes to what constitutes "strong" tokenomics, several things come into play.
This includes a limited total supply, fair distribution, and incentives like staking or yield rewards to motivate users to hold tokens. Many tokens also use deflationary mechanics, such as regular token burns, to reduce supply over time and create scarcity as demand grows. Together, these mechanisms can stabilise the market, build investor confidence, and encourage long-term growth, particularly when well-balanced and transparent.
Network speed/cost
The next indicator that can point towards the growth of an Altcoin is the speed of its network, and whether the cost of using it is low.
Most Altcoins are underpinned by proprietary blockchain technology, which allows for the secure sending and receiving of these Altcoins, as well as other things. Whilst each blockchain network is different, most purport to offer unique value propositions that are faster and cheaper than more established cryptocurrencies like Bitcoin and Ethereum.
So when evaluating network speed and cost, the focus is on how efficiently the blockchain can handle transactions and the fees associated with these actions.
In terms of how this impacts the value of an Altcoin, a high-performing network can support thousands of transactions per second (TPS) with minimal delay, which makes it ideal for use cases like payments, decentralized finance (DeFi), and NFT marketplaces; to name a few examples. Lower transaction costs also make a blockchain more appealing, as high fees can deter everyday users, especially during network congestion.
Therefore, an Altcoin with a robust, efficient and affordable network is much more likely to grow in value, as it can accommodate a large user base without compromising on performance.
Staking percentage
When it comes to proof-of-stake (PoS) Altcoins, the percentage of tokens staked can highlight the long-term belief users have in a project.
A high staking percentage often reflects a committed user base, as it demonstrates that holders are actively participating in securing the network while earning rewards. This can reduce token circulation, creating scarcity and potentially driving up value over time.
Conversely, a low staking percentage might indicate hesitancy or a lack of incentives for users to lock up their holdings, which could signal weaker tokenomics or insufficient trust in the network.
Altcoins with competitive staking rewards, well-designed lockup periods, and user-friendly staking interfaces are particularly appealing.
Community
The size and strength of an Altcoin's community often plays an important role in its success.
For one, a community can act as a project's marketing tool. Given how community members are often active on social media platforms such as Discord, Twitter and Telegram, an Altcoin can sometimes gain traction if there is mass talk about a certain update or partnership on these platforms. This can then catch the attention of other users who are not familiar with the Altcoin being talked about, and who will often join the official community channels of these Altcoins in order to learn more.
It's important to note that a strong community is also very important for withstanding market volatility. During downturns, a loyal and engaged community is more likely to remain committed, providing stability to the Altcoin's value, and can be an essential factor in predicting future growth.
Use cases
In a very competitive crypto market, the utility of an Altcoin can be the difference between success, or gaining little to no traction. Altcoins that seek to remedy real-world problems, or help to enhance functionality within the crypto ecosystem are especially appealing to users, and are far more likely to sustain interest. The more diverse and impactful the use case, the more likely the Altcoin is to do well.
Notable examples include Altcoins that are used to power DeFi platforms, mirror real-world assets (RWAs), or facilitate country-to-country payments. Furthermore, projects that focus on interoperability are especially attractive, as they allow users (and developers) to seamlessly navigate through various different ecosystems.
In sum, how useful an Altcoin is has a major impact on its relevance and longevity, and will significantly increase its chances of thriving; be it medium or long-term.
Bitcoin performance
At this stage in the crypto journey, it's hard to dispute that Bitcoin's performance is currently one of the most important factors for the growth of Altcoins. This is because Bitcoin is the first and most dominant cryptocurrency today, accounting for the most volume and holders, and having the largest market cap. Therefore, any major Bitcoin price movements, tech and non-tech announcements, or macroeconomic events, usually impacts the Altcoin market for better or for worse.
When it comes to Bitcoin's performance during a bull run (a big surge in price), Bitcoin’s growth usually creates something called a "wealth effect," which is basically when crypto whales (large investors) look for higher return opportunities by diversifying into Altcoins. On the other hand, significant dips in the price of Bitcoin's often triggers market corrections amongst most cryptocurrencies, which negatively impacts the price of Altcoins.
It's important to note, however, Altcoins that are resilient during a Bitcoin bear market (downturn) also demonstrate that they have big growth potential, as resilience during market downturn may demonstrate an Altcoin's loyal community, strong tokenomics, or compelling blockchain tech; amongst other things. Understanding the correlation between Bitcoin's performance and that of the Altcoin market is fundamental.
Regulatory environment
Last but not least, staying line with regulatory demands has become fundamental for crypto service providers around the world, and this in turn also impacts the growth of the Altcoin market.
For example, projects that are in line with certain regulatory standards, such as adhering to anti-money laundering (AML) and know-your-customer (KYC) requirements, tend to inspire greater trust among institutional and retail investors.
What's more, Altcoins that are compliant with the aforementioned are far more likely to get listed on regulated crypto exchanges or investment platforms, which tend to have higher trade volumes, and this too can contribute to the growth of an Altcoin. It is why more and more crypto service providers complying with frameworks like Europe’s Markets in Crypto-Assets (MiCA) regulation is a welcome sign for many compliant Altcoins.
Additionally, certain governments have recently indicated a willingness to be a bit more open to cryptocurrencies, and this is something that can best be seen through Trump's pro-crypto stance, which can have ripple effects on the market; especially given Bitcoin's spike following his election victory.
So by adhering to (or not going against) regulatory expectations, an Altcoin is much less likely to experience challenges such as delistings, low liquidity, or diminished user confidence. This contributes to its viability as a long-term investment.
The Best Altcoins to Buy for 2025
Now we have gone over some key indicators that can theoretically be used to determine Altcoin growth, it's now time to delve into the best Altcoins for 2025. However, before we delve into this, it's important to first acknowledge a few things.
Firstly, although the aforementioned indicators can indeed be useful for predicting potential Altcoin growth (when used in an intelligent manner), it's important to acknowledge that it's still impossible to make an infallible growth forecast due to the uncertainty of the market, and unforeseen external factors. So the performance of the Altcoins below should be taken more as a rough prediction, rather than a sure outcome.
Secondly, the Altcoins that have been chosen come off the back of independent research conducted by the author of this article, and do not represent the views of ICONOMI. The sole purpose of this article is to present some insightful research so that the readers may come to their own conclusions. Nothing in this article should be construed as investment advice.
So without further ado, below are 3 Altcoins that have big potential for 2025.
1) Solana (SOL)
Perhaps not a surprise given its recent popularity, the first Altcoin that has big growth potential in 2025 is Solana (SOL).
What is Solana?
Solana is a high-performance blockchain network for dApps, which has its own unique consensus mechanism - taking a combination of Proof of History (PoH), together with Proof of Stake (PoS). This combination allows incredibly high transaction speeds at extremely low cost.
Use cases
Solana enables a raft of uses, including DeFi platforms, NFT marketplaces, and gaming, given that it can handle fast throughput with low transaction fees.
Tokenomics
Solana's native token $SOL can be used for staking, transaction fees and governance within the Solana ecosystem. The total supply of $SOL is capped at around 589 million tokens. The inflation rate, which started at around 8% annually, is forecast to decrease over time, ending up at a rate of 1.5%, thereby encouraging staking and network security.
https://solanacompass.com/tokenomics
Network speed/costs
Solana has the ability to process 65,000 transactions per second. Even at this speed, it leaves its major layer-1 competitor Ethereum in the dust, but with its new validator client "Firedancer" due to come online in the next few months, the transaction speed should increase dramatically. Transaction fees are generally less than $0.01, which is perfect for scalability.
Staking percentage
More than 65% of the circulating supply is staked, which helps to secure the network, and currently offers staking rewards of between 5.5% to 6.3% APY, and higher.
Community
Solana has a big and active community backed by the Solana Foundation. Initiatives such as hackathons encourage developers to take part in the network.
2) Sui (SUI)
Sui is another layer-1 competitor to Ethereum, and is also an incredibly fast and cheap alternative to Ethereum's older tech.
What is Sui?
The Sui blockchain focusses on speed, scalability and on being user-friendly. It was developed by Mysten Labs and uses the Move programming language for smart contracts, giving almost instant finality and high throughput.
Use cases
Sui is designed for low-latency applications, such as gaming, NFTs and DeFi.
Tokenomics
The $SUI native token is capped at 10 billion tokens. Those operating on the network can use $SUI to pay for gas fees, staking for rewards and network security, and for participation in governance. Distributions of the token are towards the community, developers, and the Sui Foundation, with a strategy that incentivises participation and growth of the network.
Network speed/costs
Sui promises 125,000 transactions per second, leveraging parallel execution for low latency. The focus is on enabling frequent microtransactions while keeping fees stable and low.
Staking percentage
Around 41.7% of the $SUI supply is staked, which provides security for the network and earns staking rewards of around 2.6%.
Community
The Sui community is supported by the Sui Foundation, which focuses on development and adoption of the network. Grants, hackathons, and education are aimed at developers and the community - helping to grow the ecosystem.
3) Build on Bitcoin (BOB)
Build on Bitcoin (BOB) is a hybrid L2 that combines the security of Bitcoin with the versatility of Ethereum in order to become the home of Bitcoin DeFi.
What is Build on Bitcoin?
BOB is a hybrid L2 solution that leverages Bitcoin’s proof-of-work (PoW) security and Ethereum’s robust DeFi ecosystem. By integrating Optimism’s rollup technology, BOB enables scalable, cost-effective transactions and supports Ethereum Virtual Machine (EVM) compatibility. This means developers can seamlessly create Bitcoin-based dApps using popular tools like Solidity.
BOB also addresses Bitcoin’s liquidity fragmentation through features like the BOB Gateway and BOB Stake, which simplify onboarding, staking, and DeFi participation for users.
Use cases
BOB opens a wide range of possibilities for Bitcoin DeFi, including staking and yield (BOB Stake allows Bitcoin holders to participate in liquid staking), cross-chain functionality (BOB bridges Bitcoin and Ethereum, enabling seamless swaps, BTC-backed stablecoins, and tokenised hash rates), and developer tooling (developers can utilise the BOB SDK to build innovative dApps for Bitcoin’s trillion-dollar market, such as NFT platforms, DEXes, and more).
These are just of the few things that can be achieved on BOB.
Tokenomics
As of right now, BOB doesn't have a native token. However, the team have announced on their social media pages that they will be having a token generation event (TGE) sometime in 2025, meaning it is likely that investors will be able to buy highly-sought out BOB tokens in the foreseeable future. There are indicators that this forthcoming token could play a significant role in governance, network incentives, and user rewards within the ecosystem.
Network speed/costs
BOB’s hybrid infrastructure enables fast and affordable transactions. With Optimism’s rollup technology and Ethereum’s scalability, users benefit from low transaction fees while enjoying Bitcoin’s secure foundation. The BOB Gateway further simplifies the process by enabling 1-click swaps and staking, significantly enhancing the user experience.
Staking percentage
As mentioned already, BOB has introduced a liquid staking system where BTC holders receive LSTs that can be used across DeFi protocols. The success of Ethereum’s liquid staking, with $32 billion in total value locked (TVL), highlights the immense potential for BOB’s staking platform as it integrates more providers and protocols.
So although BOB doesn't currently have a token, the current total-volume locked of Bitcoin on BOB is $236.7 million; 4th out of all Bitcoin sidechains. This in theory means that if BOB's upcoming token can be staked in order to leverage its platform, then the staked token percentage could be quite high.
Community
The BOB community is rapidly growing, bolstered by initiatives like the BOB Fusion program, which incentivises users with rewards such as Spice points and OP airdrops. By supporting developers and fostering engagement through community voting, grants, and referrals, BOB ensures its ecosystem remains vibrant and accessible to both builders and users.
Currently, BOB has over 100 active projects interacting with its infrastructure.
Things That Could Negatively Impact Altcoin Growth
As can be seen, the aforementioned Altcoins are all offering highly enticing and well-thought-out value propositions, and given how many analysts and indicators are predicting Bitcoin to experience even more growth in 2025 (due to Trump's election), the author predicts that all 3 can potentially experience impressive impressive growth in 2025 (please note that Build on Bitcoin is yet to have its TGE).
That being said, crypto investors should also be aware that even if all these indicators line up favourably for certain Altcoins, there are still other things that can potentially hinder growth; or point towards a pump and dump.
VC concentration and dumps
The first thing to watch out for is a large percentage of locked (vested) tokens being owned by a few VCs or early investors.
The reason why you should look out for this is because quite often, an Altcoin will give certain VCs and Angel investors a heavily discounted token allocation in return for early investment. This means that when a token experiences a surge in price, there's always the possibility that these early investors will sell a sizeable amount of their tokens, which in turn can result in the price of an Altcoin suffering.
So it is recommended to review vesting and unlock schedules in order to identify when early investor tokens become available for sale, or to cross-reference on-chain data to see whether an unlock event has passed. This is to see if large token transfers or sales have already occurred.
Orchestrated influencer promotion
Another thing to watch out for before investing is orchestrated influencer promotions. This is when an Altcoin is seemingly being promoted in a very aggressive manner by multiple well-known crypto influencers; and those with a past track record of promoting pump and dump projects in the past.Many of these influencers are often approached by Altcoins (or associates) to promote their project in return for a hefty payment in their native tokens, or a significant token discount. This means it is often in the interest of influencers to ensure that they speak highly of the Altcoin, as quite often their endorsement will result in their viewers or followers investing in the promoted token en masse. Then what usually happens is the very same influencer will often dump his/her tokens as soon as there is a surge in price, which normally results in losses for those who invested.
So it is advisable to be careful with Altcoins that are being promoted by multiple crypto influencers who have a history of pump and dumps.
Multiple focus shifts
Seeing an Altcoin constantly changing its value proposition is also something that could raise some concerns. Many Altcoins from the ICO days (2017/18) have changed their products and target areas so many times, that they are almost unrecognisable to many of their early investors. So while some might argue that this is simply evidence of an agile project that is willing to keep up with market demands, others might see this as a project simply trying to capitalise on the latest trends in order to make a quick profit. Either way, seeing an Altcoin change its value proposition multiple times over a short period of time should give food for thought.
Founders being part-time VCs
Due to many Altcoins having experienced tremendous success during previous bull markets, many crypto founders became millionaires as a result.
While some have ignored the significance of this newfound wealth and continued to work on their projects as usual, many have appeared to use their newfound wealth to invest in crypto startups as part-time VCs (or angel investors). While there is nothing illegal about this, it does raise questions regarding how serious these founders are about their own projects, and whether their divided attention will impact the progress of their roadmaps.
That said, there are also many successful founders who have managed to effectively juggle both investing and their own projects. So investors are advised not to tarnish every Altcoin founder with the same brush. Some will be able to effectively multitask, others won't.
Conclusion
And there you have it!As can be seen, this article has provided a holistic and in-depth insight into the best Altcoins to buy in 2025, and in a way that provides you with a solid understanding of what they are doing and why they are valuable. This is primarily so you can go off and do your own research.
To reiterate once more, this is not an endorsement of these Altcoins, but more a look at 3 projects that the author believes has growth potential in 2025 based upon certain indicators, with the latter arguably being more valuable than the examined Altcoins. This is because they provide a useful framework for evaluating the value of an Altcoin, and whether there are any red flags present.
However, even though these indicators, factors and red flags can be very useful, it's also important to know that they aren't infallible either. There's currently no way to be 100% sure that an investment in an Altcoin will yield a ROI, so always keep this in mind. As always, do your own research, due diligence, and never invest an amount you can't afford to lose.
If you enjoyed this article, you may be interested in our other titles:
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