Under what conditions will the cost of alternative coins begin to multiply and can this happen already at the end of this year?
The opinions of experts may not coincide with the position of the editorial board. topplabs.org does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
Over the past week, some altcoins have seen significant gains in value. For example, Ethereum went up 23%, Binance Coin went up 30%, and Solana went up 19%. This is happening against the backdrop of the growth of bitcoin, which has risen in price by more than $ 10 thousand (25%) over the past seven days. Experts explained whether it is worth expecting the next season of altcoins against the background of the growth of the first cryptocurrency.
At the moment, Bitcoin continues to be the main growth driver for the entire cryptocurrency market, says Nikita Zuborev, senior analyst at Bestchange.ru. According to him, this is indicated by the share of the first cryptocurrency, which continues to be above 40%. The altcoin season, in its usual form, will not begin until the momentum of Bitcoin's growth slows down, the analyst is sure.
“So far there are no prerequisites for a global trend change in the main cryptocurrency, so we expect uniform market growth in the future,” Zuborev added.
The rapid growth of altcoins should be expected only if in the near future there are no shocks in the market that could bring down the bitcoin rate, the analyst explained. According to him, with the most positive development of events, the next altcoin season should be expected in late 2021 – early 2022.
“Tokens will go up after Bitcoin reaches the six-digit price and the beginning of its long-term consolidation at this level,” Zuborev noted.
Mikhail Karkhalev, financial analyst of Currency.com crypto exchange, agreed with the forecast of the senior analyst at Bestchange.ru. In his opinion, the rapid growth of altcoins should be expected only after the renewal of the historical maximum by bitcoin.
Which tokens will grow in the first place
First of all, the tokens of projects that are leaders in their niche will begin to grow rapidly, says Karkhalev. In his opinion, these could be Uniswap , Cardano , Chainlink , Filecoin , Polkadot , Chiliz , Solana and Litecoin . The analyst also added that all these projects are actively developing and will grow evenly even if the altcoin season does not come.
Already at the end of this year, the market leaders – Ethereum , Cardano , Binance Coin , Solana and others, can “shoot”, Zuborev is sure. He claims that these altcoins have a high "social strength". After the market leaders have significantly increased in price, the other tokens, for example, from the DeFI sphere, "meme" coins and new altcoins, may show a multiple growth, the analyst predicted.