The prosperity of the cryptocurrency market has recently been impacted by the outlook for the global economy. The long delay in approval of spot Bitcoin ETFs, high inflation rates, regulatory developments, and other economic factors have contributed to a slump in all the cohort of crypto assets. This turned investors’ worst nightmares into reality, realizing a daunting scenario that would have seemed unlikely a couple of years ago when cryptocurrencies showed an impressive performance and caused many to think the market could only keep an upward trajectory.
Fluctuations in prices are nothing unusual in such a volatile market. They have so far rewarded crypto holders with effective short-term investment strategies that speculate on price changes, though in the current situation, hodling and long-term investing are the favorite approaches. Throughout history, bull runs have always followed in the wake of bearish markets, though the exact timing remains unpredictable. For this reason, savvy crypto investors continue to hold onto their assets and wait for a more positive global economic outlook, even if the sector has shown signs that it might bounce back sooner than later.
2024 began with high hopes for the cryptocurrency market. Bitcoin and Ethereum, the two market leaders, have once again positioned themselves in a battle position for supremacy and a larger investment share. Many investors and experts anticipated it would be a good year for the crypto market given the improved performances starting with January, when btc price usd broke its last psychological level and the Ethereum price continued to grow. In the current situation, many market enthusiasts cannot help but wonder if Ethereum could outshine Bitcoin in the following bull market.
Let’s delve into the factors that could bring about this shift in positions and find out why investors are turning to altcoins to better understand what’s ahead for the two leading cryptocurrencies.
Ethereum and Bitcoin have always been competitors
The competition between Bitcoin and Ethereum in popularity is well known, and comparisons between the two are only naturally drawn. Ethereum has a market capitalization of over $450.00B USD, which shows how appreciated it is by the market. It has always been persistently behind Bitcoin, the original cryptocurrency whose value in the marketplace is two and a half times higher. Ethereum initially sought to improve decentralization, and it wasn’t long until tech-savvy individuals started to explore the whole range of capabilities enabled, such as creating and using different decentralized blockchain-based platforms and applications. Bitcoin, on the other hand, serves mainly as a digital asset and is often used for its capacity to store value in times of high inflationary pressure, for it has proven its resilience throughout time. For many investors, a scenario where the leading altcoin overtakes the primary cryptocurrency would have, so far, seemed hardly achievable, if not unrealistic.
Ethereum has registered a significant performance growth
Since the sector has turned bullish, Ethereum, the flagship altcoin, registered a steady value rise, outperforming the rest of the altcoins by a wide margin. Given the regulatory movements and investors ‘ worries about the real estate sector, it then started to fall and kept a downward trajectory for the following month. On the other hand, the leading cryptocurrency, Bitcoin, showed a more impressive performance, compared to the second-best cryptocurrency in the market.
Ethereum’s impressive surge over the last few months inflicts hope on those who have accommodated it into their portfolios. Bitcoin is at the moment losing ground to Ethereum and other altcoins as investors are shifting to them in what is expected to be an altcoin season. Part of the reason why investors are turning their attention toward altcoins is that they have extensive utility compared to Bitcoin. Additionally, their lower purchasing prices make them more accessible to the wide public. Beginner investors find it more suitable to add to their portfolios multiple altcoins instead of putting their funds solely into Bitcoin. These projects are highly volatile, and if they use the right strategies, they can make a high return on investment.
Rising interest in altcoins
Cryptocurrency exchanges register increasingly more interest from investors in altcoins. Generally, altcoins, short for alternative coins, are anything besides Bitcoin, and cryptocurrencies like Ethereum or Litecoin were the entry points for these assets to conceptualize. A paramount difference lies in how the two categories of digital money are quoted. For instance, Bitcoin is quoted in euros, dollars, or other fiat money, whereas the latter’s value usually translates to BTC.
Ethereum is the most prominent altcoin, and experts are inclined to believe it is entering a stage of recovery. Its oversold status at the moment might see it enter a bullish phase as we approach September. Since it is a prominent altcoin, this asset likely has the power to turn the tables on Bitcoin.
Ethereum isn’t the only altcoin that’s inflicting more hope on investors whatsoever. Ripple and Shiba Inu also emerge as favorites. The former’s popularity stagnates across age categories, with investors in their twenties demonstrating the highest level of interest in this asset. Shiba Inu is also witnessing growing popularity. Its social volume has recently increased showing improved performance during a time when the rest of the altcoins aren’t at their best. Usually, prices of digital coins rise in the wake of a new development. In light of this, Shibarium’s launch might provide a reasonable explanation for the surge in the asset’s price.
Last words
Ethereum and Bitcoin, the most prominent players on the crypto stage, did well in the last few months. Now that the prices have started gradually increasing, investors are also embracing altcoins instead of the major cryptocurrency because they have started to recognize their potential to deliver a return on investment. The world is curious whether Ethereum can outperform Bitcoin in terms of growth performance in the near future because the project has been successful in meeting some of its goals. For the moment, Ethereum seems to be challenging the unshakeable dominance of Bitcoin, and enthusiasts can only stay hopeful.
