In the crypto market, there's been slim pickings this year. Many top cryptocurrencies are down anywhere from 20% to 50%, and are showing little sign of turning around anytime soon.
Aside from Bitcoin (BTC +0.60%), it's difficult to find any solid investment prospects. While a few high-flying names have soared in value this year, many of them might not be worth the risk. Let's take a closer look.
Hyperliquid
First up is Hyperliquid (HYPE +0.28%). If the ticker symbol for this cryptocurrency doesn't raise a red flag, I don't know what will. Out of seemingly nowhere, Hyperliquid is up 65% for the year, and now ranks as the 11th-largest cryptocurrency in the world, with a staggering $13 billion valuation. While Hyperliquid has been around for several years, the HYPE token only launched in late November 2024.
CRYPTO: HYPE
Key Data Points
Hyperliquid is primarily a decentralized exchange (DEX) for trading digital assets, and it's built on top of its own proprietary blockchain. This makes Hyperliquid different from other decentralized exchanges, such as Uniswap (UNI 0.25%), that are built on top of the Ethereum (ETH +0.59%) blockchain. Ethereum is notoriously slow and clunky, and Hyperliquid is not.
When trading cryptocurrencies, speed and efficiency matters, so a DEX built on Hyperliquid is more attractive than a DEX built on Ethereum. Add in the fact that Hyperliquid offers trading of perpetual futures contracts, and you can understand its appeal.
Here's the problem: The trading of perpetual futures contracts ("perps") is highly restricted within the United States, simply due to the amount of risk they pose. They're fantastic for speculation because you don't have to hold the underlying asset to trade these contracts. And, as the name makes clear, there's no date when they expire. From my perspective, this makes the HYPE token too risky for my liking.
Tron
Next up is Tron (TRX +2.52%), which is up 14% for the year. It now has an impressive $27 billion market cap, making it the 8th-largest cryptocurrency in the world.
Tron is an offshore blockchain project founded by Chinese billionaire entrepreneur Justin Sun in 2017. Maybe you recognize the name -- Sun has been in and out of regulatory trouble for years, and some U.S.-based cryptocurrency exchanges won't even let you trade the Tron token as a result. It's just too hot to handle.
But here's the thing: The regulatory outlook for Tron has completely changed under the Trump administration. All pending cases against Sun have apparently been paused or dropped entirely. With that out of the way, Sun's blockchain company now has a Nasdaq stock market listing via a reverse merger with a company that manufactures toys for theme parks.
Image source: Getty Images.
Maybe I'm being too skeptical, but regulatory issues don't disappear just like magic. In 2024, Sun provided considerable financial backing for the launch of World Liberty Financial, the crypto venture affiliated with the Trump family. Then, this year, he became one of the biggest buyers of the Official Trump meme coin. He also became an enthusiastic backer of the new stablecoin launched by World Liberty Financial, further solidifying his links to the Trump family. His blockchain company also went public with the help of a Trump-linked bank.
If you take into account how quickly the relationship between President Trump and Elon Musk soured, then who's to say that this couldn't also happen with Sun? I'm out on this one. It's just too risky and speculative for me.
Dogecoin
Speaking of Elon Musk, what about Dogecoin (DOGE +0.38%), his favorite meme coin? Despite offering no real value to its users, the joke-inspired Dogecoin somehow still has a $26 billion valuation. At one point this year, it looked like Dogecoin might become an official part of Musk's DOGE (Department of Government Efficiency). But that's not going to happen now.
If you've been holding on to your Dogecoin, hoping against hope that it might soar in value once again, it's time to face reality. Dogecoin is down 48% for the year, and it's currently 77% below its all-time high from 2021, when Musk famously appeared on NBC's Saturday Night Live as "The Dogefather."
Technically, Dogecoin is no longer at a "sky-high valuation," given its recent losses. But if you take into account the fact that the intrinsic value of any meme coin is zero, then a $26 billion valuation seems sky-high to me.
Buy Bitcoin instead
Years from now, I might look back on my current takes on Hyperliquid, Tron, and Dogecoin and deeply regret my skepticism. Maybe these coins will transform some investors into crypto millionaires.
For now, though, I'm sticking with high-quality crypto names with proven historical track records. You can buy as much Dogecoin as you want, but I'm sticking with Bitcoin.
