Altcoins Thrives While Major Coins Keeps Silent, Where will the Crypto Market Go?
Altcoins seem to usher in its own spring while major coins keep a stable price. Several times, even dozens of times of increase in price, making people in a trance have the illusion of dreaming back to 2017’s bull run.
Is the rise of altcoins’ price a harbinger of a bull run or the sickle of the banker?
ADA gets 288% up, while Doge gets 57% up this year, and the price of Link has more than tripled this year. Even in the field of DFI, where altcoins abound, the prices of Kyber Network and Compound have soared by more than 20% against the US dollar. In particular, Compound’s governance token comp has skyrocketed from a dozen dollars to more than $400 in just a few days.
Among the top 10 cryptocurrencies in market value, bitcoin has only increased by 27% since this year, while it has fallen by 0.66% in the past seven days; XRP has risen by 2.98% since the beginning of the year, while it has increased by only 6.5% in the past seven days; BCH has increased by 10.41% so far this year, and has fallen by 4.03% in the past seven days.
Why altcoin is in its heyday?
Since the beginning of this year, the China-US trade war, the rampant global epidemic, the U.S. stock circuit broke, negative oil futures and a series of negative results have led to a long horizontal period of about $9000 in bitcoin price after halving.
Due to the sluggish rise of the major coins dominated by bitcoin, many investors turn to altcoins whose price tis easier to pry.
Secondly, the desire of users to invest is rising. Previously, some people believed that the reason why A-shares and gold can soar in the near future is not that there are more off-site capital entering, but the increasing demand of users for investment.
After a series of bad news such as the epidemic and trade war, the retail investors are more eager to save and make profits from investment than before, which also promotes the prosperity of A-shares. So is the crypto space. The price rise of altcoins is also the speculation of the stock funds.
The concepts of DeFi and Filecoin gets popular
Although DeFi is still in its early days, it covers many sub-industries. DeFi has contributed a considerable number of altcoins to the crypto industry, among which there are some currencies with astonishing price growth such as Sta and COMP.
In addition, the popularity of DeFi has even led to the soared price of a number of coins from related track. Take link as an example, which has soared 342% this year. The sharp rise is due to the fact that DeFi needs an Oracle to obtain the coin price data outside the chain, which makes the Oracle become an important outlet for this wave of the market.
Editor of 8btc, blockchain lover. Vincent shares the news of blockchain and cryptocurrency in China with you.
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