2017 holds a prominent place in cryptocurrency history. Massive returns, increased crypto adoption, sky-rocketing coin prices, new cryptocurrency exchanges, and whatnot. The year became an ideal year, slingshotting crypto recognition in the global arena.
While Bitcoin enthusiasts often cite 2017 as ‘the’ year of Bitcoin, where the 1000% rise in Bitcoin’s price shook the crypto industry, industry veterans often speak another tale. While Bitcoin increased from $1000 to $20,000 by the end of the year, it was eye-popping, the industry veterans call 2017 as the year of altcoins. And rightly so.
Source: Coinmarketcap, Quartz
Take Ripple, which performed a record-breaking run resulting in a 36,000% gain! Similarly, NEM, Ethereum, Litecoin, and others generated equally massive returns. Interestingly, the altcoin bull run overshadowed the 1000% increase of Bitcoin with 2017 getting declared as the alt season.
Why 2021 might be the Alt season
So there are multiple aspects at play that point towards an altcoin bull run.
- Latest market trends
Altcoins are making significant gains in their prices. The top altcoin by market capitalization and a favorite for many – Ethereum has recorded a significant gain over multiple weeks. Similarly, other altcoins and crypto-assets like Cardona and Chainlink, too, are generating double-digit percentage gains for multiple weeks.
- The decline in Bitcoin dominance
After making a heroic recovery post its plunge early in 2020, Bitcoin prices seem to touch a stable bracket in October 2020. This stability, coupled with increasing gains by altcoins, has severely impacted the support for Bitcoin’s dominance. Market analysts predict that if the support sees a further decline, that will more or less guarantee an altseason.
- Media coverage
The fluctuations associated with the cryptocurrencies are primarily susceptible to media coverage. Since early July, reports, and analysis about an upcoming altseason has been making rounds. This has directly created a major impact on the future of the altcoin bull run. Since an increased percentage of crypto enthusiasts are now doubling down on altcoin investment, this has set up the stage for an altcoin season in 2020.
- Increase in market funding
The commencement of the 2017 altseason can be traced back to bullish investment in the crypto industry, motivated by Bitcoin’s success. With the prices of Bitcoin and gold soaring in the times of a turbulent world economy, this has prompted multiple investors to make a substantial investment in the crypto industry.
These factors coming together, offer a glimpse of an upcoming altseason. However, the industry does not hold this view unanimously. There are some investors and industry veterans that disagree with any possibility of an altseason. Others point towards a controlled altseason, unlike the dynamic altseason of 2017.
It may not be this Simple
While talks of altcoin bull run are making rounds, there are a few trends, on the other hand, that are pointing towards an upcoming Bitcoin bull run. These trends are supported by multiple industry veterans and observers who are extremely positive about this happening. As per this faction of industry veterans that include Simon Dedic, cofounder of Blockfyre, and Changepeng Zhao, CEO of Binance, a controlled alt season can be expected.
- The success of selective altcoins
While the 2017 alt season saw most altcoins succeeding, where investors shelled out a huge amount of money just to take a bite out of the soaring prices, the year 2020 might not replicate that scenario. The group predicts that crypto assets with relevant features and protocols will only constitute the altcoin bull run if any, and those that do not offer any lucrative facility will fade out. Here altcoins like Ethereum will lead the altcoin bull run.
- Market sentiment
Increasing signs of bullishness seem to be more common. Take the spike in the price of Dogecoin, after it garnered huge support from the Tik-Tok community. This made it one of the best performing altcoins in the second half of 2020.
- Increase market holdings of DeFi
Some analysts point towards an imminent crypto bull run where the major winners will be DeFi related projects and cryptocurrencies. Due to its path-breaking ability, the growth and adoption of DeFi projects have attracted multiple investors over the months. If an altcoin run happens, will DeFi projects outshine every other project with redundant and outdated technology?
Now, this calls out for making necessary arrangements to supercharge your investments irrespective of any chain of events in the future.
Turn the market movement to your advantage
While the chain of events in 2020 might be a reminiscence of 2017 for many, this calls out for being prepared for any market movement that happens. Since a Bitcoin bull run is expected, industry analysts are making several precise predictions on its price, which is not the route we here would like to take. But we do agree with the sentiment – Bitcoin can be a lucrative asset.
If the future chain of events supports an altcoin bull run, then-popular altcoins are likely to lead the way. This also makes Ethereum and Litecoin a relatively good option. Apart from this, multiple low-priced coins are making significant gains over the previous weeks. Of course, despite all this information and indicators, do your own research!