The last boom in the prices of altcoins was observed in 2017, which ended at the beginning of 2018. During the period of a month, the prices of most of the altcoins increased while the bitcoin dominance dropped from 67% to 32%.
Now, two years later, people are still waiting for another altcoin boom. However, the next altcoin boom is very less likely to occur. Reasons? We will discuss here.
By the end of 2017, the Bitcoin price hit an all-time high of $14,000, but then it dropped significantly going below $10,000, which made investors fear that the coin price might drop further and they will end up losing. However, one thing we know about Bitcoin is that its price has never been stable. The BTC price might not be high at a time but it will rise again, just as we saw this year (in 2019). The price of bitcoin increased significantly this year to capture nearly 62% of the market, an all-time high since December 2017.
Now, many traders who have invested in altcoins are hoping that history will repeat itself and they will see another altcoin surge, same as 2017. And they are not completely wrong in their hopes because we know just how quickly the value of BTC moves to altcoins when the surge happened two years back. However, there is a distant possibility that we might not see the same kind of altcoin surge now. Here’s why.
The crypto industry has changed a lot over the past two years. Many big players, including the likes of JPMorgan Chase (NYSE:JPM), Microsoft Corporation (NASDAQ:MSFT), and Facebook (NASDAQ:FB) are trying their hands in the crypto market. In short, the companies which were once against cryptocurrencies are now openly supporting them. This itself is nothing less than a revolution.
The popularity of ICOs has diminished greatly in the last few years, giving space to more reliable fundraising mechanisms such as STO and IEO. The main reason why ETH increased in price is that BTC was mostly being used by investors as a means for investing in ICOs. But since there are not many ICOs today, the price of altcoins is not likely to boost again.
Another clear indication of a price surge is on-chain metrics such as hash rate. While there was a visible hike in hash rate in 2017, there is no such spikes have been noted this year.
Also, the retail interest, according to Google (NASDAQ:GOOGL) search trends, is not changing, as it did at the time of the 2017 altcoin boom.
Similarly, popular crypto platforms such as Coinbase and Coinmarketcap have not reported any unprecedented growth in 2019.
All these things are a clear indication that we are not going to see another altcoin hike anytime soon. So, what’s the alternative?
As many investors are suggesting, instead of trading just any altcoin, you should rather keep your focus on the projects that are offering real value. For instance, Titan coin is a digital currency which offers much secure and faster payments anywhere in the world. The coin has real value in terms of the projects it supports.
Similarly, there are many other high-potential altcoins, such as Ontology (ONT/USD), Quant (QNT/USD), Stratis (STRAT), Remme (REM/USD), to name a few, which are doing well in their respective industries. Ontology, for instance, provides a framework for developing public blockchain applications in a range of industries.
There are many other newer as well as old cryptocurrencies which you can explore rather than investing all your money in some altcoins and waiting for the next revolution to happen.
So, to conclude, it is now better to examine a new project for real value and futuristic advantage before investing in it, rather than waiting for another boom in altcoin prices because the chances of that happening are very thin.