All throughout 2021 so far, altcoins have outperformed Bitcoin by a large margin, even with the first ever cryptocurrency adding tens of thousands per coin to its price tag during the same period. Alt season, as it’s called, brings traders and investors enormous gains, but they can lose it all in a flash as the recent selloff has shown. Here’s which altcoins are expected to perform for the rest 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 come 2021, altcoins everywhere began beating Bitcoin at its own game. Ethereum and DeFi tokens have crushed BTC trading pairs as USD value soared. The death blow to Bitcoin dominance happened when Elon Musk tweeted that Tesla would no longer accept BTC as a payment option due to the potential environmental impact mining has. Bitcoin uses an energy-intensive proof-of-work consensus algorithm to keep the network secure.
Tesla as a green automaker had to take a stand against Bitcoin, and dramatically damaged the image of the top cryptocurrency and crushing BTC dominance. The metric that measures Bitcoin’s market cap against the rest of crypto dropped from above 70% in 2020 to below 40% in 2021.
Which Altcoins Will Outperform Bitcoin?
It is once again time for crypto trends to change and altcoins to shine. Which coins have the potential to outperform Bitcoin and the rest of the market a while longer?
Ethereum has been outperforming Bitcoin since it first entered the market and will continue to do so as the altcoin has more of the market built on top of it. Demand for DeFi and the appetite for NFTs aren’t going anywhere anytime soon, and it all keeps ETH value high.
Ethereum devs are also working to complete the ETH 2.0 upgrade and roll out any remaining phases of the update. An upcoming update will improve the scarcity of Ethereum, by burning ETH gas fees. With ETH staking also picking up steam, the supply of tokens leaving exchanges is trending stronger than even BTC, making the asset even more bullish than Bitcoin itself.
Although Ethereum is growing rapidly and will be just fine in the end, the narrative of Ethereum killers is also beginning to pick up pace. Solana, Polygon, and Binance Chain have all gained popularity but there’s a sleeping giant once dubbed as an Ethereum killer that could soon awaken.
EOS, the most successful ICO of all-time, has had very few developments surrounding it over the last several years since its debut, despite the talented developers and executives associated with the project. Often times the biggest successes come out of nowhere using the mantra “under promise and over-deliver”.
By not becoming part of the crypto hype train, when EOS does break news it could be revolutionary.
If Ripple wins the court case with the United States Securities and Exchange Commission, the FOMO that will hit the coin will surely send it to a new all-time high. The all-clear sign that the coin won’t again be considered a security, could make XRP a real contender for the top three coins by market cap once again. When XRP does start to rally, it is often the most explosive out of all cryptocurrencies. When the FOMO begins toward new highs, it likely won’t stop until minds are blown by how high prices have risen in a flash.
Litecoin is known as digital silver next to Bitcoin as digital gold. And much like 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 however there are a few key differences. For one, the altcoin is much faster to transact with, but it also uses a less energy-intensive Scrypt algorithm. Importantly, Litecoin has all these positive attributes, while also featuring a finite supply of only 84 million LTC, only four times more than BTC. Litecoin’s price is only $200, however, while Bitcoin trades at tens of thousands of dollars per coin. Simple math alone says that this price discrepancy doesn’t make sense, and is bound to correct in Litecoin’s favor.
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Bitcoin and Ethereum are the top cryptocurrencies of the market, commanding the most market share. However, both of these coins have reached more than three times the price of their former all-time highs, all while XRP, EOS, and Litecoin have yet to set a new high.
These altcoins could outperform both BTC and ETH by a large margin in the future, bringing unprecedented opportunity to crypto traders longing or shorting 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 against Bitcoin.