The crypto market has been really interesting in the past few months. While BTC’s growth has been slow, ETH and other altcoins have been going up very high. As of writing, ETH itself is trading above $400.
Take a look at Chainlink, it’s now ranked higher than both BCH and BSV in the coin market cap rankings. It’s insane when you think about it.
When it comes to ROI, many altcoins have been promising much better compared to Bitcoin. So, is it time to invest in promising altcoins? Well, let’s see!
Before we continue, find out everything you know about ETH 2.0.
Bitcoin Market Dominance
Bitcoin market dominance is going down. And just like the previous years, whenever it goes down, altcoins provide very attractive ROI to their HODLers. Take a look at ETH in the first half of 2017; it just kept going up. And in December 2017 to January 2018, many alts went up as high as 10–20x within a very short period.
While the current downfall of BTC market dominance is not significant, it still means a lot for altcoin investors and traders. People who have been HODLing Chainlink for a few months have been making hundreds of percentage ROI. Moreover, DeFi token investors have been making huge gains, sometimes even more than 1000%.
Find out more about Defi apps and everything you need to know.
It’s crazy, although admittedly, it might not be sustainable. The question is, what does it take for the current altcoin craze to pop? Will they break, and all the whales will suddenly pump Bitcoin? Or will they just withdraw to fiat altogether? Well, nobody has a crystal ball. But while the momentum lasts, we can attempt to predict if it’s worth it to invest in these alts or not.
Major Alts — ETH, LINK, ADA, TRX, ATOM
Let’s start with the big boys. Ethereum (ETH) has been doing exceptionally well compared to many coins in the top 10 rankings. Unsurprisingly, it has been affected by the DeFi craze. Many DeFi protocols are operating on the Ethereum blockchain. It’s obviously normal for people to have more confidence in ETH for this reason alone. Just like how the ICO craze in 2017 successfully pumped ETH price, the same thing is happening with DeFi.
And then, we also have Chainlink (LINK), which is one of the biggest winners of summer, 2020. It was trading under $4 just a few months ago, but now it’s already over $15. LINK has kicked out both BCH and BSV from their comfortable thrones in the top 10 rankings. Can it continue its momentum? Very possibly. Of course, there will be dumps here and there, but LINK is the highest rated DeFi-related token right now. So, as long as the DeFi craze keeps going on, there’s possibility for more uptrends.
In the third place, there’s Cardano (ADA). This altcoin has a huge possibility to go up when it finally has some DApps running on the mainnet. It’s predicted that the first DeFi protocol to run on Cardano will be launched by the end of this year. If this prediction comes true, Cardano will very likely go up as well. It might compete toe-to-toe against LINK.
Next on the list, we have Tron (TRX). Tron used to be one of the most sought after altcoins on the planet, but it has lost investors’ confidence as of late. Tron didn’t waste much time to tap into the current hype (DeFi), as they have recently launched Just (JST) token. With the success of JST, Tron gradually became more popular than earlier this year. Can they keep up the momentum? Maybe, let’s see…
And last but not least, we have Cosmos (ATOM). Its ecosystem has been used to build the likes of Binance Chain, Kava, IRISnet, and Band. Due to the immense success of Band and Kava, ATOM also got some recognition from the crypto community. I actually think ATOM will end up much higher than its current position in the crypto market cap rankings.
How About The Smaller DeFi Tokens?
Now let’s talk about the coins with a smaller market cap. How about the DeFi tokens? The first one to go viral was COMP. It quickly pumped from below $40 to above $300 but it’s been downhill since then. Surprisingly (or not), it has been able to maintain its price above $130. Nobody knows what’s going to happen to COMP in the future. However, it’s still a promising project with bad token distribution (many more unlocked tokens for their own investors compared to the tokens that they distribute to liquidity providers).
There are also other DeFi-related tokens like YFI, CRV, BZRX, and UMA. I do think all of these tokens will gradually go up as long as the current hype about DeFi keeps going on. However, they will fall altogether if the hype dies or slows down. As usual, whales might attempt to find a new trend (whatever it is) due to how risky the nature of crypto trends is.