It wasn’t that long ago that if you would talk about cryptocurrencies, probably 95% of the conversation would be about Bitcoin.
The granddaddy of digital currencies thrust crypto into the public fore and became the cryptocurrency of choice for everyday users and even the big financial institutions.
However, after a rollercoaster of a ride over the last couple of years which saw Bitcoin soar, crash, consolidate, soar, crash and soar again, people are looking for alternatives. Now, with the cryptocurrency market valued at more than $250 trillion dollars, it is, in fact, altcoins that are driving the crypto world forward.
Whilst Bitcoin has experienced an incredible113% increase since July, Altcoins have been slowly but surely edging their way into the limelight. Since September, Bitcoin has generated a +32% return, leaving most of the altcoins in its wake. whilst during the same time, Ethereum rose +21%. However, the tide is turning.
Top meme token Shiba Inu has now become the seventh largest cryptocurrency on the basis of market cap. In August 2020, an anonymous entity called Ryoshi created SHIB as a token on Ethereum’s ERC-20 blockchain. Since then, Shibu Inu (SHIB) has soared an astounding 1,600,000%.
The interest in digital currencies like DOGE and SHIB is not only growing, but it is overtaking the interest in crypto coins like Bitcoin and Ethereum.
A recent study by Bacancy Technology found that Dogecoin has been easily the most searched for cryptocurrency in the United States in 2021. The memecoin which started as a joke in 2017 has so far in 2021 had 2.3 million more searches than the second-placed Bitcoin.
And it is not just in the searches that altcoins dominate over Bitcoin. Popular trading platform Robinhood revealed in its filing with the SEC (Securities Exchange Commission) in the US that 40% of its cryptocurrency transaction-based revenue was attributable to transactions in the meme cryptocurrency dogecoin in the third quarter. By comparison, dogecoin accounted for 62% of Robinhood’s transaction-based revenue in the second quarter.
The Appeal of the Altcoins
So, why are people turning their backs on Bitcoin and turning towards Altcoins? Well, for a start, advancements in blockchain technology and interoperability have enabled new altcoins to be presented on a secure and transparent network faster and scalable than the ‘traditional’ Bitcoin technology.
Dogecoin (DOGE) has become THE altcoin for the old-school crypto crowd who prefer a secure network that can reliably store and transact value. Meanwhile, Shiba Inu has gathered support as the next-generation altcoin that integrates and connects the exciting worlds of DeFi and NFTs via its ShibaSwap decentralized exchange and Shiboshi NFT range.
Another issue that points towards growth in the altcoins market is holding, Bitcoin hodlers to be precise. The number of “hodled” and possibly lost Bitcoin tokens continues to rise alongside the price of Bitcoin (BTC). The total amount of “hodled or lost coins” hit a nine-month high of over 7.21 million BTC. People are trading Bitcoin less and it is becoming untradable to large swathes of everyday people, whilst institutions like Grayscale and even nations like El Salvador seemingly snap up Bitcoin in every dip.
So, we are left with a situation where advances in technology, a growing FOMO (fear of missing out) and aloofness of Bitcoin are combining to make the appeal of Altcoins stronger and stronger with each month’s passing. With the rise of Cardano and Solana, we can expect even more interest and growth in the altcoin world, which in turn, will drive the crypto world forward.
Never, i repeat, never, rule out Bitcoin
Bitcoin has had its day.. Doge and Shiba inu are the new kids on the block but ones to watch
Can never forget Bitcoin!