It’s not just bitcoin and ether that have been rising for a few days. From Matic to Ethereum Classic to Quant, other cryptocurrencies are gaining ground.
While the cryptocurrency market is experiencing a pause, bitcoin’s “dominance”, that is, its weight in the global cryptocurrency market – estimated at more than 1000 billion in capitalization – has fallen from 48% to 42% within a month.
“This means that investors are now much more interested in everything that is not bitcoin, and therefore we can observe a nice progression of certain ‘altcoins’ (a term that refers to cryptocurrencies other than bitcoin). bitcoin, Ed)” , explains to BFM Crypto Xavier Fenaux, partner at Interactiv Trading.
The cryptocurrency market has thousands of cryptocurrencies. If all is not equal, investors and individuals look for nuggets every day.
If the price of bitcoin has increased by 16% in a week, the price of ether has increased by 39%, according to coinmarketcap. Driven by their rebounds, some altcoins have performed well and are beginning to penetrate the market.
- Matic: the green blockchain cryptocurrency
Launched in 2019, Matic is the original token of the Polygon blockchain, which was founded in 2017 to address some limitations of the Ethereum blockchain. It wants to act on various Ethereum blocking points, for example by offering lower costs for “gas” fees (ie fees for carrying out a transaction on Ethereum) or by wanting to be less energy-intensive with its operating system based on “proof for stake” (see our article on this topic).
In this regard, Polygon revealed at the end of June that it had achieved carbon neutrality, increasing its token by 25%.
Despite the crypto crash in mid-June, the cryptocurrency has gone from 30 cents to almost 90 cents today, making times 2. Admittedly, its highest level was last December with a peak of $2.86, but the cryptocurrency seems to to keep the shock from the bear market. In one week, its price increased by 41.17%, Polygon had also this Wednesday unveiled its zkEVM solution, “the future of Ethereum scaling”. It is “announcing the year 2022” in their own words.
Matic ranks 13th among the most capitalized cryptocurrencies with a market capitalization of more than $7 billion. To date, 80% of Matic tokens are in circulation, it is estimated that all will be in December, which may have an impact on the price.
- Ethereum Classic: cryptocurrency carried by the event The Merge
This cryptocurrency is the result of a hard fork (see our full article on hard forks) launched in 2016. At that time, the Ethereum blockchain was hit by a 3.6 million ether hack and developers got involved. as opposed to whether they should create a new blockchain to artificially counter the hack or stay on the original blockchain. Ethereum has thus split in two, where the developers have chosen to go in different directions: Ethereum Classic is the original blockchain and the Ethereum blockchain is the one with its own token, ether.
Ethereum Classic is the 25th most capitalized cryptocurrencies in the crypto ecosystem with more than $3 billion in market capitalization. It saw its price advance by… 67% in 7 days, its price is currently trading around $23. A phenomenon that has been noted by some crypto influencers such as Mr. TK-Mining.
The rise of this cryptocurrency, on the same lines as ether, whose price has increased by 39% in 7 days, could be explained by the upcoming Ethereum merger of “proof of work” against “proof of stake” (called the Merger) .
After this merger, Ethereum miners will no longer have any use on the network and will be replaced by validators. Thus, it may be that the Ethereum Classic network will experience a massive influx of miners once The Merge is in place.
- Avalanche: the cryptocurrency driving the boom in decentralized finance
Avalanche is the original cryptocurrency of the Avalanche blockchain, launched in 2020. The latter wants to be the blockchain of blockchains. Compatible with smart contracts, Avalanche operates particularly in what is known as decentralized finance (DeFi).
As a reminder, DeFi is an open financial system accessible to all without discrimination, which provides access to traditional financial services such as loans or deposits on platforms, while maintaining control over its cryptocurrencies, unlike so-called centralized financial platforms (CeFi). ). Avalanche may rise alongside DeFi, which is gaining popularity amid distrust of certain centralized platforms.
Additionally, according to data from the Defi Llama platform on the Avalanche blockchain, $5.85 billion has been deposited by investors in DeFi protocols. An amount that begins to matter when we know that it is the Aave blockchain that occupies the first place in this area, with 10 billion dollars blocked.
Within a week, Avalanche’s price rose 30% and was trading at $23 at the time of writing.
- Quant: the token that connects blockchains
The cryptocurrency was launched in June 2018 with the aim of connecting the different blockchains. If it experienced its all-time high in mid-October, peaking at $393, the cryptocurrency has managed to recover from the two most recent crypto crashes.
In fact, mid-June Quant was trading around $45 on June 18 and is now trading at $106, also doubling its price. Over the course of a week, the price of the cryptocurrency has increased by 30%, reaching $106 at the time of writing this paper. According to DigitalCoinPrice’s prediction algorithm on Quant, the token may exceed the $163 mark in 2023.
Quant is in the top 50 of the most capitalized cryptocurrencies, being ranked 45th with a capital value of more than a billion dollars.
- True: the cryptocurrency of the metaverse
Finally, the metaverse is bringing forth new cryptocurrencies. The decentralized universe The Sandbox, co-founded by French Sébastien Borget, thus has its own cryptocurrency, called Sand.
The sand is mainly used to buy other cryptocurrencies linked to this universe. It is also used to perform “staking” in this universe, that is, by inserting it into the platform, it is possible to earn passive income.
In mid-June, during the crypto crash, the cryptocurrency fell to 0.74 cents and has since risen to $1.35, making a jump of 82%. Over the course of a week, the price of the cryptocurrency, which ranks 28th among the most capitalized cryptocurrencies, rose by 18%. The return on investment (ROI) of Sand for someone who bought the cryptocurrency at launch is estimated at more than… 16,000%.
Despite the significant variations of certain cryptocurrencies, this does not always predict their future. The various crypto crashes have revealed flaws in certain projects that individuals and investors believed in a few months earlier. One thinks, for example, of the Luna cryptocurrency in the Terra blockchain, which collapsed completely last May.