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.