2022 is expected to bring an altcoin season that will place these digital tokens at the forefront
Bitcoin has been a market leader for preceding cryptocurrencies since its inception in 2009. However, the first and foremost digital token has also paved its way for altcoins that are making impressive progress today. According to experts, at some point, altcoins like Ethereum will outperform BTC easily. While the cryptocurrency sphere is eagerly waiting for the shift, 2022 is expected to bring an altcoin season that will place these digital tokens at the forefront.
Bitcoin and Ethereum recently touched a record high of US$68,500 and US$4,800 respectively towards the end of 2021. After the major bull rub, cryptocurrency enthusiasts thought that BTC will breach its long stood psychological resistance of US$100,000 before 2022 began. But things went down the stream when Fed announced revised interest rates to divert people from investing in risky investment models like cryptocurrency. Since the news made headlines, Bitcoin and Ethereum are hitting record lows. BTC’s price briefly stood below its major resistance level of US$40,000 this Monday, panicking investors of an approaching death cross. Although it bounced back a little, the historic lows in Bitcoin and Ethereum’s dominance could mean that an altcoin season is on the radar.
This is not the first time Bitcoin has lost its value. For almost two years now, BTC’s market stance has been threatened by altcoins. Prior to the 2017 price rally, Bitcoin alone accounted for as much as 95% of the entire cryptocurrency market. But in less than a year, altcoins took over the market and pushed Bitcoin to 35%. But 2022 seems to have even more interesting stuff in its bag. In just a couple of weeks, it has panicked BTC and ETH investors and now indicating an approaching altcoin season.
The Stance of Bitcoin Today
2022 has marked a tug of war between the cryptocurrency bulls and bears. The fall of the top digital token, Bitcoin, has marked the beginning of the downward trend. While Bitcoin’s price fall directly affects the investors, on the other hand, miners are also the biggest victim of this scenario. Their revenue in Bitcoin as compensation for providing ming services is affected. Since the cost associated with mining works is also high, the income drop will push many miners to step out of the work if the downward trend continues.
Bitcoin has lost almost 40% since it reached a record high in October. Following this fall, subsiding cryptocurrencies like Ethereum and Solana have also lost value. But despite the price plummets, experts predict an approaching altcoin season that will sweep the cryptocurrency market in January. Etherum has indicated a signal for altcoin season last November when it reached an all-time high without the help of Bitcoin. If other altcoins continue to show their dominance, 2022 will be a year for them.
The Basics of Altcoin Season
Generally, cryptocurrencies other than Bitcoin are called altcoins. Bitcoin emerged as the first successful blockchain set up in 2009, following which other altcoins hit the market. Today, the altcoin market is comprised of many facilities and investment models that stand alongside BTC.
The increasing usage of altcoins and their dominance in the market is constantly driving investors to a period called altcoin season when these digital tokens reach record highs. In 2021, many altcoins recorded massive growth and registered all-time highs. Many even outperformed Bitcoin on growth percentage. During the altcoin season, Bitcoin usually loses its dominance and paves the way for altcoins to show its market presence. Therefore, altcoin season usually happens after a bitcoin bull run.
The Approaching Altcoin Season in 2022
When a possible altcoin season outbreak was visible in November, experts thought that it will eventually roll out massive growth for the coins. However, altcoins also went through a slump phase where the whole cryptocurrency market seemed gloomy. However, there are many recommendations and predictions of altcoins that will blow up in 2022. Besides Ethereum, other digital tokens are also set to make breakthroughs this January. Some of the altcoins with amazing potential are listed as follows.
- Ripple is on a tough court battle with SEC. If the result unfolds in favour of XRP, then it will drive Ripple’s price to record highs in a matter of days.
- Solana is a potential ‘Ethereum Killer’ that has recorded massive growth in 2021. The Solana platform has also been attracting developers and projects recently.
- Although Decentraland is not making a big buzz, it has survived the 2017 bull run and is currently thriving as one of the pioneers.
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