Altcoin Season Incoming?
For months, altcoin holders have had to stand by silently as Bitcoin went on a tear, progressively hitting higher highs. However, with the total altcoin market cap resting around all-time lows, it may well be time to say that the bottom is in.
Calling the bottom is always a difficult and tricky thing to do. But, given how long the altcoin market has ranged around its current lows, and with Bitcoin exhibiting strength in the $10,000 region, there are reasons for optimism.
Whatever You Do, Watch Ethereum
There are thousands of cryptocurrencies available on the market today. All of them, except Bitcoin, are considered “altcoins.” That’s because Bitcoin’s market dominance is so great that every other coin is considered alternative.
Altcoins generally follow the trend presented by BTC. However, as seen in late 2017, they also decouple from Bitcoin on occasion. During that particular decoupling, Bitcoin hit just shy of $20,000 before dropping to $14,000. While it dropped like a rock, Ethereum led a charge to the top followed by the rest of the market.
In one fell swoop, Ethereum advanced upwards of 300% as it hurtled from $300 to $1400. Altcoins with smaller market capitalizations rallied alongside, with some, like South Korea’s ICON, seeing gains over 2,000%.
When it comes to the cryptocurrency market as a whole, Bitcoin is the market. To read the altcoin market, Ethereum is the true market, especially when considering that a vast majority of altcoins run on the Ethereum blockchain.
Ethereum 2.0 Is on the Way
Ethereum developers recently confirmed that Ethereum 2.0 is on schedule to start rolling out January 3, 2020. The long-awaited update will bring unprecedented scaling to the network, reductions in fees, higher throughput, and a switch to the proof-of-stake algorithm.
The significance that these updates collectively represent is such that Ethereum will finally make good on its claim to the ‘world computer’ title it has long carried.
While Ethereum 2.0 is an ETH-specific update, it also lays down a marker for the rest of the altcoin market. As mentioned, the majority of projects are built using its blockchain. With that blockchain due to see major improvements, it stands to reason that the altcoin ecosystem, in general, will also see a big performance boost.
Ethereum’s upgrade couldn’t be arriving at a better time. Decentralized finance applications are being built on the network in droves. Before they can reach their real potential in terms of usage, they’ll need the scaling prowess that ETH 2.0 promises to deliver.
First Signs of #AltSzn?
At the time of writing, Ethereum was making a move that resembled what one might call a breakout. While it is too soon to tell definitively, it most certainly has the looks of a lasting boost.
The rest of the altcoin market has responded in kind, as expected. Ethereum is likely to face major resistance at the psychological $200 hurdle. Should it punch through with force, then make sure you’re strapped in, ’cause the altcoin market is set for a wild ride.