Currently, there is controversy among investors in the crypto scene as to whether 2021 is the year for altcoins. In the face of Bitcoins getting stronger, will alternative cryptocurrencies manage to build their reputation and value to trump the crypto top dog? Check out Wetten.com to find US casinos that accept casinos, altcoins and other payment options for deposits.
What are altcoins?
They are alternative currencies that exist alongside Bitcoins. When these altcoins outperform bitcoins to a significant degree, we talk about the so-called alt season. For example, if 75% of all the top 50 cryptocurrencies perform much better than Bitcoin over the course of the last month, this can be referred to as the Alt Season or Altcoin Season. In this context, Bitcoin’s dominance is decreasing given its market capitalization. The current dominance of Bitcoins comes to about 70% of the market cap for all existing cryptocurrencies. The other altcoins take about 30% of the market capitalization. Today, investors can easily buy and sell altcoins like Polkadot.
The last crypto cycle in 2017/2018.
The last crypto cycle has come between 2017 and 2018. This is where altcoin and bitcoin all-time highs occurred. In this cycle, the dominance of Bitcoins to the temporary value dropped to about 35%. Rightly, this case can be assumed to be the altcoin season. The whole thing lasts for about six months, after which Bitcoins manage to achieve significant dominance, which quickly rose above 50%.
Bitcoin and the market capitalization increased tremendously in 2021. Partially, the Bitcoin could outperform, nevertheless, it lacks area-wide the base and long-term for the significant outperformance compared to Bitcoin. This has underlined the breadth and strong dominance of bitcoin. Parallels to 2017/2018 are there, as back then Bitcoin reached a market cap that almost reached $300 billion.
At this point in time, the market capitalization of Bitcoins comes to $650 billion, which is 2.16 times compared to the previous cycle and an amazing multiplication. At that time, the total market capitalization including altcoins was $500 billion, based on this comparison, it should be clear how steep the rise of cryptocurrencies in general has been in recent years.
The current market capitalization of bitcoin and altcoin.
The market capitalization of all altcoins reaches $300 billion and has increased 0.6 times compared to the previous cycle. Currently, we are not yet in an altcoin season, the current time or phase can be called bitcoin season, bitcoins still hold the vast majority of the market capitalization.
The dewy-eyed investors in cryptocurrencies first recalculate their returns in so-called fiat currencies, such as euros and US dollars. Regardless of which coen the fiat holdings are invested in, these investments should be maximized at all costs. In this case, it is perhaps a matter of finding the most profitable cryptocurrencies at this point in time in order to reap maximum profits. From this point of view, it is already interesting to see how 2021 will develop.
