Finding the 5 best cryptocurrency to invest in is crucial as the market enters its next expansion phase. With Bitcoin ETFs gaining traction, institutional money flowing into the market, and the next bull run on the horizon, picking the right digital assets can lead to massive gains.
This list highlights the 5 best cryptocurrency to buy now, covering established giants like Ethereum (ETH) and Avalanche (AVAX), high-potential low-market-cap coins, and penny cryptocurrencies poised for breakout growth. Whether you’re looking for passive income, altcoins under 1 cent, or the next crypto that will make you rich in 2025, these tokens stand out as top investments.
Let’s break down why these are the 5 best cryptocurrency to invest in:
5. Ondo Finance
Ondo Finance appears to be one of the best cryptocurrency to invest in this year as it is emerging as a key player in the real-world asset (RWA) tokenization space, a sector expected to reshape traditional finance. Backed by increasing adoption and institutional interest, ONDO has seen strong growth in token holder participation, active addresses, and total value locked (TVL) over the past year.
Key Developments in 2025
Expanding Institutional Adoption: Ondo Finance will soon deploy its U.S. Dollar Yield (USDY) product on Stellar, enhancing accessibility to on-chain yield opportunities. Ondo ETP Listing: 21Shares launched the 21Shares Ondo ETP on Euronext Amsterdam and Paris, providing investors exposure to ONDO without direct custody. Tokenized Treasury Growth: Ondo is integrating its OUSG tokenized U.S. Treasury fund with PayPal’s PYUSD, strengthening stablecoin-backed liquidity. Liquidity Expansion: The Ondo Nexus initiative is building liquidity infrastructure for tokenized treasuries and onboarding asset managers like Franklin Templeton and BlackRock.On-Chain Metrics & Adoption
Token holders Surging: The number of ONDO holders has grown steadily over the past year, surpassing 120K by February 2025, reflecting rising confidence in RWA tokenization. Ondo Finance token holders and active addresses. Source: Token Terminal Active Addresses Growth: Monthly active ONDO addresses climbed beyond 28,000 as of February from around 9,000 in October 2024, signaling higher on-chain participation. Total Value Locked (TVL) in ETH Terms: Ondo’s TVL, measured in Ethereum, peaked near 250K ETH in early 2025, marking a continued inflow of institutional and retail capital.Technical Analysis & ONDO Price Outlook
ONDO/USD is forming a bull flag pattern, a structure often preceding a breakout. ONDO/USD three-day price chart Key Fibonacci retracement levels indicate potential resistance at $1.47, $2.02, and $2.91. If ONDO breaks out from the flag, the 2.618 Fib extension at $2.91 could be a major upside target.Risks to Consider
Regulatory Uncertainty: As RWA tokenization gains traction, potential regulatory changes could impact Ondo’s operations. Market Liquidity Risks: While Ondo is building a liquidity network, trading depth may remain an issue compared to major altcoins. Volatility: ONDO’s price action remains highly speculative, with sharp corrections possible if macro trends shift.Ondo Finance is positioned at the forefront of crypto’s growing RWA sector, attracting institutional interest and expanding its product lineup. However, investors should weigh regulatory and liquidity risks before considering exposure to ONDO.
4. Filecoin (FIL)
The next in line in the list of the best cryptocurrency to invest in is Filecoin. It is a decentralized storage network designed for securely monetizing, storing, and retrieving data. Built as an incentive layer for the InterPlanetary File System (IPFS), Filecoin enables a global data marketplace where users can trade excess storage capacity.
Key Developments in 2025
TVL Surge: Filecoin’s total value locked (TVL) has skyrocketed in 2024, exceeding 15M FIL, reflecting rising demand for decentralized storage solutions. Filecoin TVL chart. Source: Defi Llama Filecoin Developer Summit in Bangkok: Discussions on AI integration, governance improvements, and ecosystem growth signal continued expansion. Enterprise Partnerships: Filecoin’s collaboration with Blockfrost enhances Cardano’s decentralized storage capabilities. Smart Contract Upgrades: The successful NV24 Tuk Tuk upgrade improved network efficiency, security, and economic stability. Cultural Preservation: Institutions like the Smithsonian are integrating historical datasets into the Filecoin network, ensuring long-term digital preservation. Network Scalability: The Filecoin Plus program is prioritizing Layer 2 solutions, enhanced security, and improved user onboarding.Filecoin Price 2025
FIL/USD is trading near a historical accumulation zone, reflecting a potential rebound opportunity. FILUSD weekly price chart The 50-week EMA aligns with the 0.236 Fibonacci retracement level at around $.93, acting as the primary rebound target. A breakout above this level could send FIL toward key Fibonacci targets at $7.14, $16.49, and $24.85.Risks to Consider
Competition from Centralized Storage Solutions: Despite Filecoin’s decentralization, traditional cloud providers (AWS, Google Cloud) remain dominant. Price Volatility: FIL has historically faced large drawdowns, making it a high-risk investment. Adoption Hurdles: Enterprises may require faster transaction speeds and improved developer tooling for broader adoption.3. Cardano (ADA)
Another best cryptocurrency to invest in is Cardano. It is a smart contract-enabled Layer-1 blockchain utilizing the Proof-of-Stake Ouroboros consensus mechanism. Known for its peer-reviewed research approach, Cardano aims to create a scalable and decentralized financial system.
Key Developments in 2025
Governance Milestone: The Plomin Hard Fork transitioned Cardano into full decentralized governance, granting ADA holders voting power. Institutional Interest: Grayscale has filed for a Cardano Spot ETF, signaling potential institutional capital inflows. Enterprise Expansion: Cardano is collaborating with Microsoft to boost blockchain adoption in enterprise applications. Market Strength: ADA whale holdings exceeded $12 billion following Donald Trump’s election win in November 2024.On-Chain Metrics & Market Impact
TVL Declining: Cardano’s total value locked (TVL) is trending downward, suggesting reduced DeFi participation. Cardano TVL performance. Source: Defi Llama DeFi Growth Challenges: Cardano struggles with DeFi adoption despite its strong ecosystem compared to Ethereum and Solana.Cardano Price Analysis
ADA/USD broke out of a symmetrical triangle pattern, confirming a bullish reversal. ADA/USD weekly price chart. Source: TradingView Key resistance levels: $0.85 (0.236 Fib), $1.24 (0.382 Fib), $1.55 (0.5 Fib), and $1.87 (0.618 Fib). If capital rotates into ADA, long-term upside potential could reach $2.89.Risks to Consider
DeFi Competition: Cardano lags behind Ethereum and Solana in DeFi adoption. Scaling Delays: Despite research-backed development, Cardano’s rollout of key upgrades has been slow. Market Dependence: ADA’s price heavily correlates with broader crypto sentiment.Cardano’s move toward decentralized governance and institutional adoption is promising, but DeFi growth and scaling challenges remain key risks.
2. Hedera (HBAR)
Hedera has emerged as one of the best cryptocurrency to invest in in recent months. It is a public distributed ledger platform leveraging the hashgraph consensus mechanism to offer scalable and secure decentralized applications for enterprise use.
Key Developments in 2025
Transaction Fees Surge: Hedera’s transaction fees increased by 10,000%, highlighting growing network activity. Hedera on-chain metrics performance (90d). Source: Messari DEX Volume Explosion: HBAR’s DEX trading volume surged 473% to $1.44 billion, signaling rising DeFi adoption. Mainnet Upgrades: Hedera completed the v0.56 upgrade, with v0.57 scheduled for Jan 15, 2025. Enterprise & AI Expansion: Hedera joined the Decentralized AI Society and integrated Chainlink’s Proof of Reserve. Declining TVL in HBAR Terms: While TVL in USD grew 3.77% to $116M, TVL measured in HBAR has declined, indicating capital outflows despite higher network activity. Hedera TVL performance chart. Source: Defi LlamaHBAR Price Analysis
HBAR/USD is eyeing a decline toward its 50-week EMA near $0.152, offering a potential buying opportunity before a rebound. Key upside targets: $0.24 (0.5 Fib), $0.28 (0.618 Fib), and $0.35 (0.786 Fib). HBARUSD weekly price chart. Source: TradingView Breakout potential toward $0.44 (1 Fib) and $0.68 (1.618 Fib).Risks to Consider
Centralization Concerns: Hedera’s governance model is controlled by enterprises, raising decentralization concerns. Competition from Other Layer-1s: Hedera competes with Ethereum, Solana, and Avalanche for DeFi adoption. Market Volatility: Despite network growth, price fluctuations remain high.Hedera’s growing DeFi footprint, enterprise partnerships, and AI initiatives position it as a promising long-term blockchain investment.
1. Ethereum (ETH)
Ethereum remains the dominant smart contract blockchain, powering DeFi, NFTs, DAOs, and Web3 applications.
Key Developments in 2025
Ethereum ETF Approval: The SEC approved Bitcoin and Ethereum ETFs, with trading set to begin on Jan. 30, 2025, increasing institutional exposure. Network Activity Growth: Ethereum’s active addresses surged by 37% to 575,000 daily, with 1.3 million daily transactions. DeFi & Staking Boom: Ethereum’s total value locked (TVL) is rising, driven by higher staking rewards and DeFi engagement. Ethereum TVL performance. Source: Defi Llama Gaming Expansion: Sony is exploring Ethereum integration for PlayStation games, boosting NFT and gaming adoption.Ethereum Price Analysis
ETH/USD is testing ascending trendline support, historically a strong rebound zone. Upside targets: $3,800–$4,000 if ETH holds the trendline. ETH/USD weekly price chart. Source: TradingView A confirmed breakout above $4,000 could push ETH price toward its all-time high of $4,800.Risks to Consider
Scaling Challenges: Ethereum Layer 2 networks are growing, but gas fees remain an issue. Competition from Alternative Layer-1s: Solana and Avalanche are competing for DeFi and NFT market share. Regulatory Uncertainty: Ethereum’s classification as a security remains unclear, potentially affecting ETF approvals.Ethereum’s dominance in DeFi, institutional adoption, and staking continues to strengthen its position. However, scalability concerns and regulatory risks remain key considerations.
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