- Many altcoins have real-world applications and are becoming disruptive technologies.
- They can or promise to solve real issues in fintech, DeFi, and even the entertainment industry.
- Part of investing in crypto is understanding the type of solutions an altcoin is tied to.
The cycles of the crypto market are as colorful as the seasons of the year.
Historically, they’ve followed an orderly pattern that starts with bitcoin’s price peaking, followed by a reduction in its dominance and then a spike in altcoins.
Most seasoned traders are privy to this type of movement and follow the lead, taking profits from bitcoin and throwing them at riskier, alternative bets. The second quarter of 2021 saw some altcoins rally hard after bitcoin peaked. Several hit all-time highs, making headlines that had new investors getting in on the action out of FOMO. Ether just about reached $4,200, a 471% increase year-to-date, while Binance coin, the third-largest by market cap, peaked at $675, up 55% year-to-date.
The last quarter of 2021 seems to be gearing up for another round. Altcoins like cardano have raced ahead, already hitting new peaks.
While some newbies may play their hands by swinging at the fences, seasoned investors have a grip on what’s worth betting on. And, they will often stick to blue-chip projects in the event they don’t get out fast enough or want to hold a small percentage after the dust has settled.
But what exactly are these real-world applications that investors are betting on in addition to the massive price upside that altcoins offer? Turns out that there are several, which is why crypto is beginning to take its place in the world of disruptive technologies in sectors such as decentralized finance (DeFi), fintech, and even the entertainment industry.
Insider compiled 10 of the top altcoins and their real-world applications.
