It’s not just bitcoin and ether that have been on the rise for a few days. From Matic to Ethereum Classic to Quant, other cryptocurrencies are gaining ground.
While the cryptocurrency market is experiencing a lull, the “dominance” of bitcoin, that is to say its weight in the global cryptocurrency market – shown at more than 1000 billion in capitalization – has fallen from 48% to 42% within a month.
“This means that investors today are much more interested in anything that is not bitcoin, and therefore we can observe a good progression of certain ‘altcoins’ (a term referring to cryptocurrencies other than bitcoin, Ed)”, explains to BFM Crypto Xavier Fenaux, partner at Interactiv Trading.
The cryptocurrency market has thousands of cryptocurrencies. If all are not equal, investors and individuals are looking for nuggets every day.
According to coinmarketcap, if the price of bitcoin has increased by 16% for a week, the price of ether has decreased by 39%. Buoyed by their rebounds, some altcoins performed well and started making their way into the market.
- Matic: the green blockchain cryptocurrency
Launched in 2019, Matic is the native token of the Polygon blockchain which was founded in 2017 to solve some limitations of the Ethereum blockchain. It wants to act on various Ethereum blocking points, for example by offering lower costs of “gas” fees (i.e. fees to carry out a transaction on Ethereum) or by wanting to be less energy-intensive with its operating system based on “proof of stake” (see our article on this subject).
In this regard, Polygon revealed at the end of June that it had achieved carbon neutrality, boosting its token by 25%.
Despite the crypto-crash in mid-June, the cryptocurrency has gone from 30 cents to almost 90 cents today, thus making times 2. Admittedly, its highest level was last December, with a peak at 2, $86, but the cryptocurrency seems to be holding the bear market shock. In one week, its price rose by 41.17%, Polygon having also unveiled this Wednesday its zkEVM solution, the “future of Ethereum scaling”. It’s “announcement of the year 2022” in its own words.
Matic ranks 13th among the most capitalized cryptocurrencies, with a weight of more than 7 billion dollars on the market. To date, 80% of Matic tokens are in circulation, it is estimated that all of them will be by December, which could have an impact on its price.
- Ethereum Classic: the cryptocurrency driven by The Merge event
This cryptocurrency is from a hard fork (see our full article about hard forks), produced in 2016. At that time, the Ethereum blockchain suffered a hack of 3.6 million ethers, and developers got involved. opposed to whether to create a new blockchain to artificially counter the hack or stay on the original blockchain. Ethereum has thus split into two, the developers applied to go in different directions: Ethereum Classic is the original blockchain and the Ethereum blockchain is the one that has its own token the ether.
Ethereum Classic is at the 25th position of the most capitalized cryptocurrencies in the crypto ecosystem, with more than 3 billion dollars in market capitalization. It saw its price increase by… 67% in the space of 7 days, its price currently trading around 23 dollars. A phenomenon that has been noticed by some crypto-influencers, such as Mr. TK-Mining.
The rise of this cryptocurrency, in the same line as ether whose price has increased by 39% in the space of 7 days, could be explained by the upcoming Ethereum merger of the “proof of work” towards the “proof of stake” (called The Merge).
After this merger, Ethereum miners will no longer have any use on the network and will be replaced by validators. Thus, it could be that the Ethereum Classic network will experience a massive influx of miners once The Merge is in place.
- Avalanche: the cryptocurrency riding the boom in decentralized finance
Avalanche is the native cryptocurrency of the Avalanche blockchain, produced in 2020. The latter wants to be the blockchain of blockchains. Compatible with smart contracts, Avalanche operates in particular within what is known as decentralized finance (DeFi).
As a reminder, DeFi is an open finance system accessible to all without discrimination, which allows access to traditional finance services such as loans or deposits on platforms, while maintaining control of its cryptocurrencies, at the opposite of so-called centralized finance platforms (CeFi). Avalanche may rise alongside DeFi, which is gaining popularity amid distrust of certain centralized platforms.
In addition, according to data from the Defi Llama platform, on the Avalanche blockchain there are 5.85 billion dollars deposited by investors in DeFi protocols. An amount that begins to matter, when we know that it is the Aave blockchain that takes first place in this area, with 10 billion dollars blocked.
Within a week, Avalanche’s price rose 30%, trading at the time of writing at $23.
- Quant: the token that connects blockchains
The cryptocurrency was created in June 2018 with the objective of connecting the different blockchains. If it experienced its all-time high in mid-October, with a peak of 393 dollars, the cryptocurrency has managed to recover following the two recent crypto-crashes.
In fact, in mid-June, Quant traded around $45 on June 18 and is now trading at $106, also doubling its price. In the space of a week, the price of the cryptocurrency has fallen by 30%, reaching $106 at the time of writing this paper. According to DigitalCoinPrice’s prediction algorithm on Quant, the token could surpass the $163 mark by 2023.
Quant figures in the top 50 of the most capitalized cryptocurrencies, being located in 45th position with a capitalization of more than a billion dollars.
- Sand: the cryptocurrency of the metaverse
Finally, the metaverse brings out new cryptocurrencies. The decentralized universe The Sandbox, co-founded by the French Sébastien Borget, thus has its own cryptocurrency, called Sand.
The Sand is used in particular to buy other cryptocurrencies linked to this universe. It is also used to carry out “staking” in this universe, i.e. by depositing it on the platform, it is possible to earn passive income.
In mid-June, during the crypto-crash, the cryptocurrency fell to 0.74 cents and rose to 1.35 dollars, thus making a jump of 82%. In the space of a week, the price of cryptocurrency, which is in 28th place among the most capitalized cryptocurrencies, jumped 18%. The return on investment (ROI) of Sand for a person who bought the cryptocurrency at its launch is revealed at more than… 16,000%.
Despite the significant variations of certain cryptocurrencies, this does not always predict their future. The various crypto crashes revealed flaws in some supposed projects individuals and investors believed a few months before. One thinks for example of the Luna cryptocurrency of the Terra blockchain, which completely collapsed last May.