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By Oluwapelumi Adejumo
In the first and second quarter of 2020, the price of Bitcoin suffered a sharp decline. Then, in September, there was huge outrage in the cryptocurrency industry as Bitcoin’s value dropped by a whopping 10%, losing nearly $ 1000 in one fell swoop.
But its return has been even faster and decidedly more radical as investments in the Bitcoin franchise have been increased leading to an increase in its value since October. This move saw Bitcoin’s value rise to a dazzling $ 18,000, more than double its value at the end of 2019.
As expected, the recent Bitcoin boom has come with renewed interest in the cryptocurrency space. Old investors looking to make the most of this trend and new investors looking to enter the market before prices rise. This interest is not only in Bitcoin’s favor as altcoins have also seen their market value rise.
Ethereum
Ethereum, one of the leading cryptocurrencies after Bitcoin, has seen its price almost double. Although Ethereum had a good year, it took a dip in September when it fell $ 65.75. However, it started its rise again, when Bitcoin went bullish. Being a demand-only market, it means that cryptocurrency prices are affected by the amount of supply made.
The price of digital tokens rises as investors invade the market and falls as the unit falls.
Ethereum has been instrumental in the development of the Decentralized Finance (DeFi) subsector of the cryptocurrency industry. The DeFi world garnered a lot of interest earlier this year as users who own these assets were able to use their holdings to great effect.
During this time, DeFi tokens such as Harvest Finance, Wrapped Bitcoin and others have also witnessed a boom in their prices. However, the sector has slowed down a bit because, with Bitcoin’s current rise, interest has shifted from this sector to Bitcoin itself.
Like Ethereum, fellow Altcoin, Ripple (XRP) also climbed to $ 0.30 with gains of 23.45%, in contrast to the volatile trend it followed during the first three quarters of the year. Although skeptics say this is just another move in its never-ending bullish-bearish dance.
There are investors who compare Ripple XRP’s current trend to the early Bitcoin era and believe this would help overcome the turmoil that could affect cryptocurrency in the future. However, there has been speculation that Ripple XRP will further increase in value if the pandemic continues to affect the global economy.
Other crypto assets such as Litecoin, Cardano, Zcash and others have also experienced a price surge. They benefited from the interest Bitcoin has been able to bring to the cryptocurrency industry.
Many analysts have noted that this growth is likely to continue if many other investors are looking to invest beyond Bitcoin.
What are the chances of Altcoin in the crypto market
While Bitcoin’s position as the world’s most respectable digital currency remains intact, other cryptocurrencies have also continued to grow, an indication that they will not be bullied by its posture.
On Monday, the second most valued digital currency globally, Ethereum recorded a 6% increase in its value to $ 597. Its current value is the highest since mid-2018. This year alone, its value in the market. global economy has increased about fourfold despite a pandemic that has disrupted economic activities globally.
Like Ethereum, another digital currency that has continued to shine is Ripple. Although smaller, the coin has seen a 100% increase in value this month alone.
Bitcoin was trading around $ 18,632 on Monday, close to a three-year high.
Some analysts have said that digital currencies like Ethereum and Ripple have had an increase in value despite the pandemic because as major countries have announced the blockade to quarantine huge sections of the population, people have the opportunity to spend more time online. . As such, they are probably taking more interest in other cryptocurrencies besides bitcoin.
Likewise, the unique factors of these other altcoins have also been important in customer decisions. For example, Ripple, which was designed to eliminate slow transaction time between global companies, enables payment processing at an impressive pace.
To be precise, with Ripple, a network has the ability to process at least 10,000 different transactions in just one second. This is about a thousand times faster and even a thousand times cheaper than a Bitcoin transaction.
This means that Ripple is also relatively energy efficient.
Although Ethereum is currently relatively slower than Ripple by around 670 times and has the ability to only process around 15 transactions per second, this is certainly about to change.
The digital market is currently awaiting the arrival of Ethereum 2.0. This new system is expected to see Ethereum technology move to an updated platform that would no doubt radically change users’ assumptions about digital currencies.
Known as Eth2, the new platform has the ability to process more transactions than its predecessor. This will make the currency much more energy efficient.
Currently, each Ethereum transaction requires a whopping 22.65 kwH power, which is much better than Bitcoin. This, however, severely limits Ethereum’s speed and capacity.
With the launch of Phase 0 of Eth2 planned for 2020, many investors have jumped at the opportunity to purchase Ethereum before its release. This is because the update could spark a wave of interest in the cryptocurrency, with a positive effect on its price.
In summary, these factors and more will continue to play a role in the growth of these altcoins. Over time, they might even be expected to reach the same level of growth and popularity that Bitcoin has been able to achieve.
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