This Year's Best-Performing Digital Currencies

Determining the year's best-performing digital currencies using information from CoinGecko and Nasdaq.

Bitcoin hit a new high this year, thanks in part to the U.S. government's approval of spot ETFs and Donald Trump's election, which increased trust in Bitcoin and helped it maintain its status as the world's largest cryptocurrency. But despite making headlines, Bitcoin was outperformed by several other assets, indicating a busy year for cryptocurrency investors.

We used data from CoinGecko and Nasdaq to determine the year's best-performing digital currencies. To be eligible, assets had to start 2023 with a market capitalization of at least $500 million and be continuously trading through December 17th, attracting both traders and investors.

Pepe: Meme Coin Champion

This year's best-performing meme coin was none other than Pepe (PEPE). Introduced last year and based on the internet cartoon Pepe the Frog, which later acquired contentious overtones, Pepe's performance was extraordinary despite its history.

Beginning the year with a market capitalization of just $590.8 million, Pepe saw its value skyrocket to $9.4 billion by December. This remarkable 1,492% gain made it one of the most talked-about tokens throughout the crypto world. Not only was Pepe's ascendance ridiculously fast, but it was also remarkably long-lasting for a joke coin, rising to the 28th position in terms of market cap.

Sui: Rising Altcoin Star

Another asset that quickly rose through the ranks this year was Sui (SUI), an altcoin that created a buzz upon its blockchain debut in May 2023, being built by former Meta programmers. Its fast and efficient network appealed to both developers and users, resulting in a thriving DeFi community.

By December, SUI's market value had increased drastically, starting the year at over $925 million and rising to almost $12 billion—an astounding 1,193% gain. As a result of its explosive rise, it became the eighteenth largest crypto by market capitalization, reflecting Sui's solid foundation and rising stature in the cutthroat cryptocurrency market.

MicroStrategy: Bitcoin Stock Leader

Among the best-performing stocks linked to Bitcoin was MicroStrategy (MSTR). Once a small software company, Michael Saylor's company has grown to become a significant Bitcoin holder, and this year saw the business double down on its Bitcoin investments, solidifying its standing in the category of “Bitcoin treasury company.”

It was a really successful technique. The stock price of MicroStrategy was below $70 per share at the start of the year. By December, its value had increased 464% to $386. The performance of major Nasdaq companies, such as the computing behemoth Nvidia, was better. However, MicroStrategy attracted investors who wanted to gain exposure to Bitcoin without really owning the cryptocurrency.

Dogecoin: The Original Meme Coin

Leading the meme coin market was, of course, Dogecoin (DOGE), which has developed from being a small-time player into a significant force within the digital currency market. Starting the year at a market valuation of $45.9 billion, DOGE's value increased by an impressive 342%.

Much of Dogecoin's ongoing popularity was due to references being made by Elon Musk, the CEO of Tesla, in his statements. His frequent allusions to DOGE and speculation about its possible integration into his platform, X (previously Twitter), fueled investor excitement as Dogecoin demonstrated its resilience in the cryptocurrency space, rising to the seventh-largest position in terms of market valuation.

XRP: A Resilient Comeback

Among the best-performing assets, XRP had an amazing year. After rising about $34 billion into $131.2 billion, its market value grew by 286%. XRP briefly surpassed Tether to become the third-largest digital currencies, but it ultimately ranked fourth.

In a partial court victory against the SEC, Ripple, the company that created XRP, benefited. A significant win for Ripple and the cryptocurrency industry came when a judge ruled that automated sales of XRP to private investors did not adhere to the regulations governing securities. Consequently, investor confidence rose and XRP began to gain traction once more.

BlackRock’s iShares Bitcoin Trust

Finally, an accolade is due to BlackRock's iShares Bitcoin Trust (IBIT), which set new benchmarks in the financial industry. The ETF made Bitcoin accessible to conventional investors and attracted more than $50 billion in assets by December, setting records for both trading volume and inflows. In just 228 days, this milestone was reached—faster than any other ETF in history.

The success of BlackRock demonstrates how institutional interest in cryptocurrency is increasing. Even if other asset managers introduced Bitcoin ETFs as well, IBIT’s popularity and performance made it stand out. By making Bitcoin more accessible to regular investors, the ETF has strengthened its position within the financial system.

This year demonstrated how digital assets may yield