The rise of Bitcoin and Ether has not been limited to a few days. From Matic to Ethereum Classic to Quantity, other cryptocurrencies are gaining ground.
While the cryptocurrency market is experiencing a lull, Bitcoin’s “dominance,” meaning its weight in the global cryptocurrency market — estimated at more than 1,000 billion in capitalization — has fallen from 48% to 42% in a month.
“This means that investors are now much more interested in anything that is not Bitcoin, so we can see nice progress on some ‘altcoins’ (a term referring to cryptocurrencies other than Bitcoin). Crypto Xavier Fenaux, Partner at Interactiv Trading.
The cryptocurrency market contains thousands of cryptocurrencies. If not everyone is equal, investors and individuals search for nuggets every day.
According to coinmarketcap, if the bitcoin price increased by 16% for a week, the price of ether would have increased by 39%. Driven by their bounce, some altcoins are doing well and starting to make their way into the market.
- Matic: Green Cryptocurrency
Launched in 2019, Matic is the original token of the Polygon blockchain that was founded in 2017 to solve some of the limitations of the Ethereum blockchain. It wants to work on different Ethereum block points, for example by introducing lower costs for “gas” fees (i.e. fees for making a transaction on Ethereum) or by wanting to be less power-hungry with its operating system based on a “proof of 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 nearly 90 cents today, taking it to 2. Admittedly, its highest was last December, peaking at $2.86 However, the cryptocurrency seems to withstand the shock of the bear market. In one week, its price is up 41.17%, and this Wednesday Polygon revealed its zkEVM solution, the “future scaling Ethereum.” It’s “the year 2022 announcement” in its own words.
Matic ranks 13th among the most capitalized cryptocurrencies, weighing over $7 billion in the market. So far, 80% of Matic’s tokens are in circulation, and it is estimated that they will all be in circulation by December, which could have an impact on its price.
- Ethereum Classic: The cryptocurrency held by The Merge
This cryptocurrency is the result of Hard Fork (see our full article on Hard Fork), launched in 2016. At that time, the Ethereum blockchain suffered 3.6 million Ethers hacked, and developers got involved. blockchain to artificially counteract hacking or stay on the original blockchain. Thus Ethereum split into two, with developers choosing to go in different directions: Ethereum Classic is the original blockchain and the Ethereum blockchain is its token, ether.
Ethereum Classic ranks 25th among the most highly capitalized cryptocurrencies in the cryptocurrency ecosystem, with a market capitalization of over $3 billion. It saw its price go up…67% within 7 days, and its price is currently trading around $23. A phenomenon noted by some crypto influencers, such as Mr. TK-Mining.
The rise of this cryptocurrency, similar to ethereum which rose in price by 39% in 7 days, can be explained by the upcoming “Proof of Work” merger of Ethereum towards “Proof of Stake” (called consolidation).
After this merger, Ethereum miners will have no use on the network and will be replaced by validators. Thus, it is likely that the Ethereum Classic network will see a massive influx of miners once The Merge is in place.
- Avalanche: the cryptocurrency driving the decentralized finance boom
Avalanche is the original cryptocurrency of the Avalanche blockchain, which was launched in 2020. The latter wants the blockchain to be a blockchain. Compatible with smart contracts, Avalanche works specifically within what is known as Decentralized Finance (DeFi).
As a reminder, DeFi is an open financing system available to everyone without discrimination, which allows access to traditional financial services such as loans or deposits on platforms, while maintaining control over cryptocurrencies, unlike so-called centralized financing platforms (CeFi). ). The avalanche may rise alongside DeFi, which is gaining popularity amid distrust of some centralized platforms.
In addition, according to data from the Defi Llama platform, on the Avalanche blockchain, there are $5.85 billion deposited by investors in DeFi protocols. The amount that starts to matter, when we know that the Aave blockchain is the one that holds the number one spot in this space, with a $10 billion block.
Within a week, the price of Avalanche is up 30%, and at the time of writing it is trading at $23.
- Quantity: the token that connects the blockchains
The cryptocurrency was launched in June 2018 with the aim of connecting different blockchains. If it had an all-time high in mid-October with a peak of $393, the cryptocurrency has managed to recover after the last two crypto crashes.
In fact, in mid-June, Quant was trading around $45 on June 18 and is now trading at $106, which also doubled its price. Within a week, the price of the cryptocurrency increased by 30%, reaching $106 at the time of writing. According to Quant’s DigitalCoinPrice prediction algorithm, the token could cross the $163 mark by 2023.
Quantity ranks among the top 50 most capitalized cryptocurrencies, taking the 45th place with a capitalization of over $1 billion.
- Sand: The cryptocurrency for metaverse
Finally, the metaverse is bringing out new digital currencies. Decentralized universe The Sandbox, co-founded by Frenchman Sebastien Bourget, has its own cryptocurrency called Sand.
The Sand is specifically used to buy other cryptocurrencies associated with this universe. It is also used to implement “staking” in this universe, that is, by depositing it on 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%. Within a week, the price of the cryptocurrency, which was ranked 28th among the most capitalized cryptocurrencies, jumped by 18%. Sand’s return on investment (ROI) for the person who bought the cryptocurrency at launch is estimated to be more than…1600%.
Despite the significant differences in some cryptocurrencies, this does not always predict their future. Several cryptocurrency crashes revealed flaws in some projects that individuals and investors believed in just a few months ago. One thinks for example of the Terra blockchain cryptocurrency Luna, which completely collapsed last May.