Altcoins Surge as Cryptocurrency Market Capitalisation Exceeds $2 Trillion
- The value of cryptocurrency market capitalisation has exceeded $2 Trillion for the first time in history.
- Bitcoin and Ethereum are at the lead with the #1 and #2 positions.
- Altcoins also experience a surge as a result of the new crypto boom.
- Altcoins are becoming an attractive investment opportunity for many people.
“Altcoins” refer to all cryptocurrencies that are not Bitcoin. Let’s first have a look at altcoins as a whole before we get too deep into the world of cryptocurrency and see how exactly they rose in value. You’ll notice that Bitcoin is in a major lead and has withheld its position at the over $1 trillion marks for weeks now.
As of 2021, altcoins account for over 40% of the total cryptocurrency market, and there are over 9,000 altcoins available. Some of the main types of altcoins are mining-based cryptocurrencies, security tokens, utility tokens, and stablecoins.
If you’re curious as to what the currently highest-rated altcoins are, if you’re going by market capitalisation, you’ll notice that Ethereum, as well as Binance Coin, are leading the pack as of the 22nd of April, 2021.
The Market Cap Exceeds $2 Trillion
When discussing the cryptocurrency market capitalisation, it is essential to note that as of recently, it managed to hit an all-time high of $2 trillion, according to data and market trackers Yellow and CoinGecko. Gains throughout the previous month attracted demand from both institutional alongside retail investors.
Bitcoin specifically led this surge, and it hit its milestone through holding around a $1 trillion market cap for over a week and was up 1.4% at $59,045 since hitting its lifetime peak of $61,000 in March of the year. As of April 22nd, 2021, Bitcoin has a value of $55,284.
As long as Bitcoin can stay above $53,000, it should have no issues keeping up and maintaining its $1 trillion market cap.
Ethereum is the world’s second-largest cryptocurrency when it comes to its market capitalisation, and it was up 1.3%, bringing its value to $2,103. This meant that it reached a market cap of over $262 billion and even managed to hit its record high price of approximately $2,538.
The Blockchain market data provider company Glassnode noted in a research report that the fact that Bitcoin actually held the $1 trillion market cap for one week is one of the most decisive votes of confidence for Bitcoin, as well as the whole cryptocurrency asset class. On-chain activity has continued to reinforce Bitcoin’s position, and it has a volume equivalent of over 10% when it comes to the circulating supply, which is transacting above the threshold of $1 trillion.
Since Bitcoin’s rise to fame in late 2020, a lot of investors, as well as individuals, started getting a lot more interested in the world of cryptocurrencies.
Types of Altcoins
Let’s discuss some of the different types of altcoins on the crypto markets and their functions.
Mining-Based Altcoins
These are cryptocurrencies that are “mined” in order to exist. Cryptocurrency mining works through a Proof-of-Work or PoW method, where systems generate new coins by solving complex cryptographic calculations to create new blocks of cryptocurrency.
Stablecoins
Stablecoins are cryptocurrencies that are pegged to a specific asset or goods, typically being FIAT (government-issued) currencies, precious metals, or other cryptocurrencies.
Security Tokens
Security token cryptocurrencies resemble traditional stocks and promise equity. The prospect of price appreciation is a significant draw, and investors put money on them as a result.
Utility Tokens
Utility token cryptocurrencies are often used to provide services within a certain network or blockchain. They can also be used to purchase services and redeem rewards, and they do not pay out dividends or part with an ownership stake as other coins.
How are Altcoins different from Bitcoin?
Altcoins are seen by many as appealing and better versions of Bitcoin due to the fact that they are designed and developed to try and solve a lot of the shortcomings seen in Bitcoin.
While Bitcoin is the first cryptocurrency to ever hit the mainstream, has the highest value, and it remains at over $1 trillion marks for a few weeks now, its technical implementation is far from perfect, and as such, a lot of people have developed altcoins in order to combat those shortcomings.
Getting into Bitcoin trading can be a challenge, as the currency has hit its all-time highs, making it one of the most, if not the most, expensive way of getting into the world of cryptocurrency trading. The high price and extreme volatility of Bitcoin make it a risky asset to invest in and trade.
Imagine you’re a new broker trying to get into crypto-investing. Playing with Bitcoin at the current prices is like playing with fire, so going through the altcoin route is a safer choice when you’re learning to trade crypto. As such, many people have been analysing the altcoins, figuring out which coins serve a purpose or a part of the best blockchain out there that can truly bring value back to the community, world, and of course, go higher up in its value. This is one of the main reasons why altcoins surged in value.
Bitcoin is practically mainstream. Who’s next?
What was considered jokes and memes just a few years ago these days is turning to reality as financial markets adjust to the new asset of cryptocurrencies.
The more people are seeing how giant companies like Tesla, Visa, and PayPal are starting to accept cryptocurrencies, the more they are getting themselves into the world of decentralized finance (DeFi).
Another thing to consider is the fact that some proof-of-work altcoins are a lot easier to mine than Bitcoin.
It’s no wonder a lot of people would choose to go the altcoin route when considering cryptocurrency trading before playing with the “big coins”.
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