The cryptocurrency market has shown significant growth over the past year. The bitcoin rate has increased by more than 400%, to $ 41 thousand. Ethereum has risen in price even more – by almost 800%, now the altcoin costs $ 1.25 thousand. Similar dynamics were shown by most of the leading coins in terms of capitalization, but not all. Among them there are those that have risen in price slightly over the past 12 months, writes RBC Crypto.
For example, the Tron token (TRX) has only grown by 120% since the beginning of 2020. Fork Bitcoin Cash (BCH) for the same period added 85%. Ethereum Classic (ETC) has risen in price by 43% over the past 12 months, and the EOS token has risen in price by 15%.
In 2017, during the previous record rally, many altcoins began to skyrocket after bitcoin first reached $ 20,000 in December. After that, the XRP token rose 450% over several weeks, reaching $ 3.8 by the beginning of January. At the same time, the price of the Tron token rose 700% to $ 0.3.
The head of Exantech Denis Voskvitsov believes that this time altcoins can also show significant growth. In the case of many assets, the best moment to buy has been missed. However, most of the altcoins are still not so expensive to invest, the expert said.
“The maximum growth of alternative cryptocurrencies begins after the bitcoin rally comes to an end, and the price of the asset ceases to demonstrate active dynamics. With a high probability, after the confident passing of the BTC mark of $ 40 thousand, we will see an impressive growth in altcoins, “Voskvitsov said.
He highlighted a few coins that investors should take a closer look at. Voskvitsov suggested considering buying coins that have mobile applications with the ability to issue bank cards tied to a crypto wallet. As an example, the expert cited the Crypto.com project, it has all of the above capabilities, and the price of its token has been significantly adjusted recently.
It is also worth paying attention to the WAVES project, added Voskvitsov. Now the token is at a comfortable price level for buying and may have the potential for further growth. The yEarn Finance (YFI) DeFi platform token has good speculative potential. But it is worth looking at it after the next correction, the expert specified.
From his point of view, the leaders of investments are now bitcoin and ether. There is little doubt about the further growth of these assets, Voskvitsov is sure. He explained that these “blue chips” of the cryptocurrency market are the choice of conservative investors and advocates of defensive assets. Institutional demand is supported by BTC, and it is unlikely that big capital will start selling coin reserves in the near future, the expert suggested.
Currency.com financial analyst Mikhail Karkhalev agreed that it would be better to focus on BTC and ETH. These coins have “just crazy” prospects, even though the value is already high. The expert shared that these are the two assets that investors should include in their portfolio for life.
Karkhalev suggested considering Uniswap, Polkadot, Compound and Chainlink tokens as more risky cryptocurrencies. You can invest in them with a perspective for the next couple of years.
The analyst questioned the future of TRX, EOS, BCH, and ETC tokens. Once the top altcoins were unable or unwilling to demonstrate what they loudly declared. The Tron platform never became anything even close to “Internet 2.0”, EOS did not become a “killer” of the ether. BCH has not evolved into a simpler and more widespread payment method instead of Bitcoin. ETC was unable to develop along the so-called classic version of the ether. Therefore, Karkhalev believes that investors should not rely on these coins.
“I don’t know if these tokens will be able to grow, but in the long term I would not bet on them. It seems to me that the crypto community also understands this, which is not eager to once again invest in those who have not met absolutely any expectations, “Karkhalev said.
The founder of the STASIS stable cryptocurrency platform, Grigory Klumov, also believes that the tokens that gained popularity in 2017 will not be so interesting to the market now. Then there was a mania among retail investors, they bought any assets labeled “cryptocurrency”. Now, on the contrary, there is institutional demand on the market, the expert said. According to him, this category of investors carefully analyzes the asset before investing in it. For example, they will not buy anonymous coins like Dash, Zcash and Monero due to the risks of delisting.
An institutional buyer won’t buy EOS or TRON either, Klumov continued. These projects did not find their niche and did not form an adequate product. Forks Ethereum Classic and Bitcoin Cash fall into the same category.
Instead, investors can consider projects that over the years have been able to become useful to the market and are experimenting in new niches or have adapted to existing ones in the field of fintech, Klumov added. Among them, he named the Stellar token. This is a project that continues to interact with financial institutions and is experimenting with central bank digital currencies. You can also consider blockchain startups NEO and PolkaDot, the expert suggested.
Another interesting sector is DeFi, Klumov is sure. The expert named 0X (ZRX) as a project. This protocol introduces limit orders that many decentralized exchanges lack the ability to use. Therefore, the project has good prospects this year, Klumov summed up.
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