Bitcoin’s Crash Turns Investors to Altcoins and Flips XRP’s Industry Position
As Bitcoin struggles to bounce back after experiencing significant percentage losses, altcoins seemingly have rallied in the former crypto leader’s destruction. Crypto analysts feared altcoins would disappear with blockchain’s introduction to mainstream traders. The previous lackluster performance of crypto altcoins left traders with limited profit expectations. However, altcoin skeptics were blown away by alternative cryptocurrencies’ performance during Bitcoin’s consolidation. Chainlink’s token surprised crypto experts with substantial gains that exceeded previous record highs.
The Massive Switch to Altcoins Following Bitcoin's Market Crash
Entering the final weeks of January 2021, LINK set all-time highs with an impressive twenty four hour gain of 7.3%. LINK increases within 2021’s first few weeks pale the cryptocurrency’s 530% rise amidst 2020’s COVID-19 outbreak. Chainlink notably connects smart contracts with data feeds off the chain. Bitcoin’s drop appears to contribute to the growing influx of money rotation into cheaper alternatives like altcoins. Before Bitcoin dived into the crypto market, Chainlink’s performance continued without wavering one way or another.
Bitcoin’s market crash stimulated altcoins’ trending rally, showing no signs of slowing down. While Bitcoin’s bull run pushed the crypto exchange market’s value to exceed one trillion dollars, the cryptocurrency’s bearish struggle gave altcoins a much-needed performance boost. Chainlink’s token pushed to new heights on crypto exchange platforms, but LINK wasn’t the only alternative digital currency with surging profits. Polkadot’s crypto token also flipped XRP to rank as the fourth most valuable cryptocurrency in market capitalization.
DeFi Tokens Take Flight on Ethereum's Platform
Market analysts predict DOT to set a precedent for other altcoins to follow in the future. While crypto leaders like XRP trade for $0.028 per coin, DOT swaps for $17 per unit. Spiked altcoin prices have previously followed Bitcoin’s bullish market runs, but not to the same magnitude as January’s rush. Ethereum’s Ether token also influences altcoins prices, but on a smaller projected scale.
As January 2021 begins to wind down, Ether’s performance and prices aren’t optimal. However, DeFi tokens are accomplishing notable gains that gradually increased over the last three months. Synthetix has bounded up crypto charts by eighty-three percent since 2021 began. In the last three weeks alone, Aave also set the crypto market on fire with a sixty-nine percent increase. DeFi tokens lack Bitcoin’s notoriety and liquidity, which leads traders to believe altcoins can exclusively outperform their counterparts in a bearish market run.
DeFi tokens’ sudden popularity boost comes with warnings from seasoned crypto traders. Litecoin decreased by eight percent entering the third week in January, but LINK’s recent command has flipped Polkadot’s position, pushing it to the top. Bitcoin’s decline triggered a domino effect in the crypto market that’s flooded over into Ethereum’s DeFi platforms.
Altcoins Rally Unlikely to End if Bitcoin Doesn't Quickly Recover
Crypto analysts predict altcoins will falter once again after Bitcoin gains market stability. The crypto exchange market has experienced a jarring trend adjustment that increases its volatility. With XRP replaced in the industry’s majority leaders’ ranks, the final weeks of January may present unique market tides for DeFi tokens like DOT.
Several crypto exchange platforms already delisted XRP when the Securities and Exchange Commission pursued a lawsuit claiming Ripple’s developer trades tokens as securities. Kraken crypto exchange has announced plans to delist XRP trades starting on January 29, 2021. XRP tokens initially ruled the crypto market, but multiple exchanges delisting XRP allows DeFi tokens to gain more ground.