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Altcoins have been performing astonishingly in the past year. The cryptocurrency market as a whole was also on a bull run for a considerable portion of 2021. But things have changed upside down towards the end of the year. Yes, the cryptocurrency sphere feels gloomy as Bitcoin price is on a steady fall for 5 weeks straight. Following this, other altcoins including Ethereum, Cardano, etc are also imitating the bear phase. In this article, we explore altcoins' potential to make a comeback in 2022.
It is no secret that altcoins have been experiencing an incredible year so far. A 10% increase in the cryptocurrency sphere is normal. In contrast, it will be considered as a ludicrous number in the stock market. While famous cryptocurrencies like Ethereum and Solana have opted for 1,000% and 10,000% growth respectively in 2021, a few unfamiliar altcoins have gone even beyond this mark. The recent bull run was a very short, yet, crisp one. After all, this bull run has exceeded all its expectations and grabbed many eyeballs when Bitocin passed the US$69,000 mark for the first time. However, the dominance of Bitcoin is slowly diminishing as the potential of altcoins is brought to light. Altcoins are virtual coins that differ from BTC in their technology. Some promising altcoins that stand next in line after Bitcoin are Ethereum, Cardano, Ripple, Chainlink, Dogecoin, and Binance Coin. Whenever Bitcoin takes the backseat, altcoin season picks up. Sometimes, these alt coins also follow the same trend as BTC. What we are currently undergoing is a similar period where Bitcoin and other altcoins seem to be heading towards a bear phase. We explain what it takes for the altcoins to make a comeback in 2022.
Bitcoin gets the lion's share in the cryptocurrency market. BTC holds almost 40.99% of the market value while Ethereum follows it with 20.65%. On the other hand, Binance Coin holds just 4% while Tether and Solana each have a little over 2.5%. Cardano takes up 2.10 while Rippe, Polkadot, Dogecoin, and USD Coin holds 1% each. Besides this, the rest of the altcoin market makes up 21% of the US$3 trillion economies.
Altcoins are the center of volatility in the cryptocurrency market. Although some say that BTC is heavily unsettling, the actual worst swings happen in the altcoin market. Many new investors go directly for BTC because they feat altcoin's volatility and are not ready to take the risk. Besides, there are no regulations as it is not obligated by law to register with the SEC.
According to a report, this altcoin season will be far different from the market trend in 2017 and 2018. It further suggests that although the interest for Bitcoin and Ethereum is surging, Layer 2 technology or attractive staking ecosystems will outperform mainstream tokens in 2022. Even after getting institutional support, Bitcoin and Ethereum are following a downward trend. On the other hand, without much noise, other altcoins like Cardano, Decred, and Dogecoin are on the linear path.
However, all is not good in the altcoin market. Litecoin and Bitcoin Cash have comparatively underperformed in 2021 and are anticipated to follow the same trend in 2022. Besides, the initial 'Ethereum Killers' like Tron and EOS have failed to live up to their promises and lost their position in the current year.
No one can accurately predict anything related to the cryptocurrency market. Since it is very volatile and changes based on the internal mechanism, the anticipations might go wrong at any stage. Fortunately, we have roughly drafted some altcoin that could perform well with its underlying technology, use case potential, and previous trading patterns. Some of them are listed as follows.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
