Today, February 3, the Ethereum rate set a new maximum above $ 1.55 thousand. Earlier, other leading altcoins in terms of capitalization showed significant growth. For example, the price of the XRP token has been going up from $ 0.26 to $ 0.75 over the last week and then collapsed to $ 0.38. At the same time, the quotes of the TRX coin grew from $ 0.030 to $ 0.044, after which they dropped to $ 0.033, writes RBC Crypto.
“Altcoin season is already underway”
A week and a half ago, the “altcoin season” began, said Andrey Podolyan, CEO of the crypto exchange cryptorg.exchange. According to him, the current market situation is reminiscent of 2017, when “whatever you buy is growing.” But you need to invest with extreme caution and not succumb to euphoria – the peak of growth is probably close, the expert warned.
He singled out one project that he considers promising with goals for 2021. This is Binance-related startup Swipe, which issues the SXP token. Its price this year may double, Podolyan admitted.
Following Ethereum, Litecoin (LTC) and Bitcoin Cash (BCH) coins may grow, said Denis Voskvitsov, head of the fintech company Exantech. These cryptocurrencies have yet to hit their 2017 highs, and this could soon happen if investors start buying assets out of a sense of loss of profits (FOMO).
Ethereum itself may continue to rise in price until February 8, when ETH futures will be launched on the Chicago Mercantile Exchange (CME), said Voskvitsov. But the market reaction could be the opposite, he warned, recalling that in 2017, the launch of Bitcoin futures coincided with the beginning of a long-term decline phase.
With a sharp movement in Ethereum quotes, altcoins may begin to fall in price, says Alexei Markov, a representative of the UTEX crypto exchange. Many coins have already shown multiple growth in recent months, and perhaps investors will start selling them in order to buy ETH, the expert explained. He suggested that traders take a closer look at coins that are not overbought in relation to Ethereum.
Ethereum competitors
Against the background of the growth of ETH, one can take a closer look at its closest competitors, believes Fyodor Anashenkov, an analyst at UTEX. These include blockchain platforms Polkadot (DOT), Cosmos (ATOM), Solana (SOL) and Filecoin (FIL). These projects will pose a serious threat to the airwaves until the scalability problem is solved in its network, the expert explained.
From his point of view, popular tokens of the decentralized finance (DeFi) sector are also of interest. These include Uniswap (UNI), Chainlink (Link), Maker (MKR) and Compound (COMP) coins, Anashenkov noted. Anonymous cryptocurrencies such as Monero (XMR), Zcash (ZEC) and Dash (DASH) can also be considered, he said.
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