Throughout 2021 so far, altcoins have vastly outperformed Bitcoin, even with the very first cryptocurrency adding tens of thousands per coin to its price over the same period. The alternate season, as it’s called, brings huge gains to traders and investors, but they can lose it all in a flash, as the recent sell-off has shown. Here are which altcoins are expected to work for the remainder of 2021, and how to both make money and protect capital when considering any of these cryptocurrencies.
Why has Bitcoin sentiment changed in 2021?
2020 was all about Bitcoin and the digital gold narrative. But in 2021, altcoins around the world began to beat Bitcoin at their own game. Ethereum and DeFi tokens crushed BTC trading pairs as the USD value skyrocketed. The fatal blow to Bitcoin’s dominance came when Elon Musk tweeted that Tesla would no longer accept BTC as a payment option due to the potential impact of mining on the environment. Bitcoin uses an energy-intensive proof-of-work consensus algorithm to keep the network secure.
Tesla as a green car maker had to take a stand against Bitcoin and significantly damaged the image of the best cryptocurrency and crushing BTC dominance. The metric that measures Bitcoin’s market capitalization relative to the rest of the crypto has fallen from over 70% in 2020 to less than 40% in 2021.
Which Altcoins will outperform Bitcoin?
It’s time again for crypto trends to change and altcoins to shine. Which coins have the potential to outperform Bitcoin and the rest of the market a little longer?
Ethereum has outperformed Bitcoin since entering the market and will continue to do so, as altcoin has more of the market built on top of it. The demand for DeFi and the appetite for NFTs are not going anywhere anytime soon, and all of this is keeping the ETH value high.
Ethereum developers are also working hard to complete the ETH 2.0 upgrade and roll out all remaining phases of the update. An upcoming update will improve Ethereum’s scarcity, burning off ETH gas charges. With ETH staking also gaining momentum, the supply of tokens leaving exchanges tends to be higher than even BTC, making the asset even more bullish than Bitcoin itself.
While Ethereum is growing rapidly and will be fine in the end, the narrative of Ethereum’s killers is also starting to gain momentum. Solana, Polygon, and Binance Chain have all grown in popularity, but there’s a sleeping giant once dubbed an Ethereum killer who may soon wake up.
EOS, the most successful ICO of all time, has had very little development around it in the past few years since its inception, despite the talented developers and leaders associated with the project. Often times, the greatest hits come out of nowhere using the mantra âunder promise and over-deliverâ.
By not being part of the crypto hype train, when EOS releases news, it could be groundbreaking.
If Ripple wins the case with the United States Securities Commission, the FOMO that will hit the coin will surely send it to a new all-time high. The completely clear sign that the coin will no longer be considered a security could make XRP a real competitor for the top three coins by market cap. When XRP begins to rally, it is often the most explosive of all cryptocurrencies. When FOMO starts to new highs, it probably won’t stop until minds are blown away by the price hike in a flash.
Litecoin is known as digital money alongside Bitcoin as digital gold. And just as silver is preferred for renewable energy technologies over the more expensive gold, Litecoin is also the much cleaner cryptocurrency.
Litecoin uses the same code as Bitcoin, but there are a few key differences. On the one hand, altcoin is much faster to process, but it also uses a less power-hungry Scrypt algorithm. It is important to note that Litecoin has all of these positive attributes, while also exhibiting a limited supply of just 84 million LTC, which is only four times more than BTC. However, the price of Litecoin is only $ 200, while Bitcoin trades at tens of thousands of dollars per coin. Simple calculations alone indicate that this price differential does not make sense and that it is bound to correct itself in favor of Litecoin.
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Bitcoin and Ethereum are the main cryptocurrencies in the market, holding the largest market share. However, both of these coins have hit more than three times the price of their old all-time highs, while XRP, EOS, and Litecoin have yet to hit a new high.
These altcoins could outperform both BTC and ETH by a large margin in the future, providing an unprecedented opportunity for crypto traders who want or short sell altcoins against their BTC trading pairs. PrimeXBT is an award-winning margin trading platform that offers CFDs on crypto, forex, commodities, stock indices, and more. In addition to USD trading pairs, the cryptocurrencies listed here are available to trade for Bitcoin.