Altcoins including Link, XRP, Dogecoin, Bitcoin Cash, Dot and Litecoin experienced new highs this Monday as investors decided to trade cheaper alternatives to market leader Bitcoin.
After the surge, Chainlink’s link soared 18% reaching a price of $36.35, the highest the coin has seen since May 19. XRP, Dot and Litecoin also experienced major gains prompting an Altcoin rally.
It is thought that investors are trading Altcoins because of their low price and smart contract capabilities. Altcoins can also support decentralised finance options. A smart contract is a code on a blockchain that allows traders to enter into financial agreements without the presence of a third-party presence, such as a bank or broker.
It is thanks to these smart contracts that blockchain-based networks, like Ethereum, have been able to do more than simply host cryptocurrencies. Smart contracts allow networks to host NFTs and include different levels of software. The Bitcoin network is much more expensive to use and cannot handle this type of application.
While it may still be the largest crypto market in terms of value, Bitcoin has been falling behind many altcoins in the last few weeks.
Yuriy Mazur, head of data analytics department at CEX.IO Broker said “What makes bitcoin less popular is its high cost and its enclosed nature when compared with that of Ethereum and other smart contract-enabled altcoins.”
Edward Moya, Senior market analyst at OANDA explains that “The crypto community believes altcoins can go up 5x or even 10x over the next several months, while Bitcoin will slowly grind higher.”
Within the surge of altcoins, Link climbed the most. The coin increased by almost 18% in the previous 24 hours to reach a high of $36.35. This is the largest increase since May 19. Meanwhile, Bitcoin saw an increase of just 1.65%. Link has rallied 45% in the last month compared to a 15% increase in Bitcoin.
Mazur went on to say, “At this pace, we can see the digital token rise to $50 in approximately 14-21 days. We can face correction along the way, but the growth surge is more likely at this time.”
Chainlink is the company behind the Link token. It offers smart contracts, similar to those offered by the Ethereum network. In a tweet kast week, Chainlink said that a record of 76 new integrations had taken place on the network in August.
Mazur said (about link), “the growth recorded in the past month has highlighted the relevance the token has continued to print, extending its lead as the first network to allow the integration of off-chain data into smart contracts.”
Other blockchain networks have also seen recent surges. XRP rose by almost 8% to $1.37 and Dot reached $34.25, a 2% raise.
The favourites among crypto enthusiasts now stand as Cardano’s ADA and Ethereums Ether. Both coins have shown promising trends recently and are both going through hard forks, according to Mazur.