People no longer use cryptocurrency interchangeably with Bitcoin and Ethereum, nor are they comparing apples and oranges. The cryptocurrency repository has grown so much to encompass over 23K tokens that a distinction between them had to be made and grasped—and so it happened. You now have Bitcoin, altcoins, stablecoins, memecoins, governance coins, and so on, the peculiarities of each one becoming easily understood by the greater audience.
The altcoin realm grows by leaps and bounds, welcoming trailblazing solutions and helping expand investment portfolios. At the movement’s core, a supreme altcoin is encountered with fanfare, and that is Ethereum. The blockchain’s native currency, ETH, is the topmost altcoin and best-known one amidst a sea of options, each with singular attributes and uses. In light of the ever-rising focus on altcoins, experts predict that Ethereum’s resilience can usher in a new era for them and help spread out the repository with new additions. What exactly is Ethereum, and how much is the ETH price prediction impacted by the altcoin sector? These and many other substantial questions are answered throughout the following chapters.
Ethereum for Starters
Ethereum, the blockchain released in 2015 by a former developer at Bitcoin, is a distributed platform serving myriad uses. Ethereum is said to have taken Bitcoin’s prowess and taken it to the next level as it overcame the limitations found in the primary blockchain. Developers can create and deploy decentralized applications (dApps) and smart contracts, the tools that revolutionize all industries. Ethereum gave way to the programmable blockchain concept, making it possible to build a far-reaching range of apps that go beyond mere digital currencies. ETH is the native cryptocurrency of the blockchain and the second-largest one in terms of market capitalization after Bitcoin.
The smart contract is the most revolutionary tool for helping two or more participants close deals without needing involvement from banks, brokerages, governmental agencies, and other third parties that would impose costly fees. The ledger’s main ground-breaking development is its potential to activate smart agreements, also known as self-executing contracts, which lean on a pre-established set of requirements that must be met for the contract to close.
Ethereum’s Virtual Machine is a decentralized, Turing-complete digital gear operating on the ledger as the runtime environment for self-executing contracts. This trailblazing system ensures security and cooperation across all decentralized apps.
Ethereum is known as the leader in decentralized finance. It serves as the trend’s pillar and hosts endless financial services, including intermediary-free trading, borrowing, and lending. Thanks to the committed developer community backing Ethereum and hosting boundless projects, it boasts a rich ecosystem and widespread adoption.
Ethereum as an Altcoin: The Essentials
It’s essential to differentiate altcoins from other cryptocurrencies. Shortly, an altcoin is any digital coin that’s not the flagship crypto, Bitcoin. Ethereum is the leading altcoin on the market, but there are 1000s of them. This number is a far cry from ten years ago, when you’d have only a handful to choose from.
Altcoins, in turn, are spread across a few types, depending on the particularities of their use cases. The following lowdown sheds light on critical elements that make Ethereum an altcoin:
- Ethereum is an “enhanced” version of the crypto that inspired its creation as it successfully overcame Bitcoin’s shortcomings
- ETH’s likelihood of passing the test of time is higher compared to other cryptocurrencies thanks to the wide selection of use cases provided
- Ethereum expanded on Bitcoin’s concept through smart contracts, decentralized finance, non-fungible tokens, and decentralized applications, among other things. It sees the blockchain as a global supercomputer fueled by native crypto.
There Are Also Downsides to Altcoins
As with any type of payment, altcoins bring about their fair share of cons.
First, they enjoy a smaller investment market share than the flagship crypto, Bitcoin, as this one seized over 40% of the market. Secondly, the market for altcoin is known to be less liquid owing to the reduced numbers of investors and transactions.
Ultimate Altcoins Right Now
Differentiating an altcoin from another is not that straightforward, making investing in one tricky. To save you some trouble, we’re breaking down some of the top altcoins of the moment, other than ETH:
- BNB, the utility token of the largest online crypto exchange, Binance, enjoys a market cap of almost $90BN. It’s used to pay transaction fees, participate in limited token sell-offs, secure discounted trades, and more on the platform. It’s also valuable for services and products outside the platform, like meals or flight tickets.
- With a market cap of almost $49BN, Solana uses a special hybrid proof-of-history and proof-of-stake consensus mechanism to operate transactions. It’s known as one of the speediest ledgers to date, and its native currency ranks among the most lucrative ones.
- XRP, the native crypto of Ripple ledger, boasts a market cap of around $27BN. It’s broken a few records, with voices muttering that it could reattain the ATH of over $3 established in 2021 if it keeps rising—potentially, sometime in 2027.
- Dogecoin, the crypto that started as a mockery eleven years ago, has evolved to become one of the most prominent ones on the market. With a market cap of $20BN, the asset is known for its wild and abrupt fluctuations mainly driven by social media influence.
A Boom is Expected in the Altcoin Sector
Reputed crypto analyst Michaël van de Poppe has recently expressed his thoughts that Ethereum’s resilience could usher in a new era for altcoins. Bitcoin may not be in its best form, but Ethereum proves it can withstand pressure. This dynamic may lay the foundation for a new wave of altcoins breaking into the market.
The second-best coin demonstrates unmatched flexibility as the cryptocurrency market experiences a bearish period and whales show sustained activity. The imminent crypto figure emphasizes that the ETH/BTC pair may hold growth in the altcoin sector after more than two years of stagnancy.
However, as on-chain data shows, a trend reversal isn’t excluded. More inflows into Ethereum stand out against increased Bitcoin liquidations.
Last Words
Institutional interest in Ethereum is also on the rise as the asset awaits its first tradeable ETFs by next month, harbingered by VanEck’s investment firm. Ethereum’s dominance and flexibility could help give way to a new wave of “alternative coins”, or altcoins. Are you ready for the show?
