Last week we witnessed the cryptocurrency market capitalization finally reaching $2 trillion, and it is mostly because of the altcoin price surge. It is reasonable to think we are experiencing the 2021 altcoins season.
One of the reasons this happened is believed to be the steady market of Bitcoin. The cryptocurrency index slowed down from 73% to 56% and permitted altcoins to forge ahead. Since Bitcoin was no longer predominating, large, mid, and even small-cap digital currencies’ worth grew.
The analyst Secrets of Crypto predicted this in a post on Twitter earlier this year when he said that there would be a shift in investment from Bitcoin into other digital currencies. This is not the first time the altcoins’ market experiences major growth in value. It also happened at the end of 2017. ICOs were an important contributor to the growth at that time.
ICO is short for Initial Coin Offering, which is basically tokens created from a company that is trying to raise funds to create a new coin, a new application, etc. ICOs are then launched to the market and purchased all over the world. It is now believed that NFTs are contributing to the 2021 altcoin season the same way ICOs did to that of 2017.
Some altcoins that are surging lately
Ether, Ethereum’s token, hit an all-time high of $2,199.87. Analysts think this happened because of the increase in the use of Ethereum’s blockchain in decentralized finance and the prediction that its ecosystem might directly influence the banking system and the stock market in the future.
Since one of the major issues of Ethereum is gas fees, its direct rivals are gaining a lot of popularity lately.
For example, the amount of transactions made on the Tron and Tether blockchains during a day surpasses those made on Ethereum.
WazirX, with a market cap of more than $1 billion, has bounced 1400% just in the past month.
BitTorrent grew by more than 2000% in just a few weeks, and there are many more examples like Theta, Filecoin, Ripple, etc.