The crypto market has been a hot topic, receiving both praise and criticism for its volatility. With the upcoming Bitcoin halving, there is speculation of a potential surge in the market. This has led to discussions about the role of altcoins in the market, which currently have a total market cap of 314.687 billion as of April 5.
Let’s take a closer look at why altcoins are becoming the preferred option for consumers.
Factors Behind Altcoins’ Price
Since the launch of Bitcoin, over 9,000 other cryptocurrencies have entered the market. What sets altcoins apart is their variety of applications, from data oracles to governance, which Bitcoin lacks. However, Bitcoin still remains the dominant player as a reserve currency on major exchanges due to its perceived long-term holding potential and its role as an intermediary for converting fiat currency to cryptocurrencies. As a result, altcoin prices often follow Bitcoin’s price fluctuations.
However, with the anticipated bull run following the fourth halving, there is potential for altcoins to shine. This is because new investors are diversifying into altcoins, which have a lower entry barrier and attract retail investors who may not have been able to enter the market through Bitcoin. Additionally, there are times when altcoins rise in value while Bitcoin’s price falls, indicating a potential interaction between the two. Many crypto analysts are optimistic about the rise of altcoins in the post-halving atmosphere, as demand for Bitcoin may decrease.
Altcoins to Consider
While altcoins may be considered riskier than Bitcoin, they also offer more room for innovation and technological advancements. It is recommended to diversify investments with well-known altcoins like Ethereum, PEPE, Bitgert, Solana, and more.
Solana is a popular choice among investors due to its wide range of smart contract applications, allowing developers to build decentralized applications, create NFTs, and establish DeFi platforms. Despite March’s market turbulence, Solana’s price has shown promising signs of a potential upward movement, characterized by a bullish pattern.
Bitgert is another promising investment option, especially after the recent ETH’s Dencun update. The Bitgert blockchain’s native cryptocurrency, BRISE, has attracted significant investment from around the world. With lower layer-2 transaction costs and a 100,000 TPS speed, Bitgert has become a top choice for many investors. However, its current price is $0.000000207711, with a 24-hour trading volume of 2.4 million, and has experienced a sudden price drop since its initial upswing from January to March.
The Impact of Bitcoin on Altcoins
Price fluctuations are normal in the crypto market, and Bitcoin’s dominance often influences the prices of altcoins. However, once Bitcoin’s surge comes to a halt, prominent cryptocurrencies from the Ethereum and Solana networks are expected to bounce back.
Ethereum, in particular, continues to be a leading platform for decentralized applications and smart contracts. Its price reached a temporary peak of around $3,700, but a recent round of profit-taking has caused a price correction. There is potential for another significant sell-off if the rising wedge pattern is confirmed, with investors potentially targeting support levels at $3,200 and $3,000 before dropping to $3,000. The recent Dencun upgrade has also contributed to the increase in Ethereum’s value, and with its close ties to Bitcoin, there is anticipation of a further rise in demand as the halving event approaches.
