- Altcoins are competing with Bitcoin for market dominance.
- The Bitcoin ban in several countries have placed a chink in its armor.
- Considering recent developments in the market, Altcoins may surge up and even overtake Bitcoin.
For all the crypto enthusiasts all over the world, Bitcoin and other altcoins have become more open for target marketing. As many countries have legalized cryptocurrencies, more people have started trading crypto assets. Particularly, NFTs also took the ride in the blockchain industry, turning its users into millionaires.
In fact, Bitcoin is the head of the cryptocurrencies in the world and all other coins made their way later after Bitcoin. Although BTC has a huge number of users and high market capitalization, the altcoins are also revealing more chances of growth.
While Bitcoin is highly volatile and has high transaction time and fees; altcoins on the other hand provide faster and cheaper transactions. To add, many altcoins give faster confirmation time than Bitcoin. The runner-up coin Ethereum (ETH) is the second-largest crypto in the world by market capitalization. The following leading cryptos are Tether, BNB, USD Coin, XRP, Terra, etc.
In contrast to legalizing crypto, many countries have also marked cryptocurrencies – especially Bitcoin – as illegal. Recently, countries like China, Iraq, Egypt, Morocco, Tunisia have banned cryptocurrency. Notably, a study titled ‘Revising Bitcoin’s Carbon Footprint’ showed that Bitcoin mining emits 65.4 megatonnes of CO2 annually.
All these issues have hindered the Bitcoin market globally. Meanwhile, altcoins – especially meme coins – surged as many companies and business magnates have partnered with the coins. For example, Elon Musk’s favorite – DogeCoin – surged as he jokingly said he would like to have a meal from McDonalds if it accepts DOGE.
Furthermore, Shiba Inu, known colloquially as ‘Dogecoin Killer’, gained more value in the market as Amazon partnered with SHIB.
Interestingly, many investors are depending on altcoins that have low prices because such coins provide the most upside potential. In detail, altcoins provide a comfortable entry and opportunity for asymmetric risk.
The Chief Financial Officer at Prime Trust Rodrigo Vicuna says:
Much like fractional equity shares, altcoins can offer a more palatable price point for first-time or average consumers except without feeling like you get only a piece of the action.
Ron Levy, CEO of The Crypto Company, remarked that altcoin “flippening” is inevitable. “It is not just Ethereum; now it is many thousands of altcoins that are coming,” Levy added. Moreover, Levy continued that DeFi, metaverse, and gaming platforms will open more chances for altcoins to grow their market cap.
To note, ‘’altcoin season’’ is a soon-to-be matter where altcoins gain momentum that would challenge the dominance of Bitcoin.
As of now, BTC trades around $42,839 with a market capitalization of $81.3 billion. Following this, ETH is the second leading crypto with a market cap of $36.2 billion.