{"id":159856,"date":"2021-01-21T21:05:08","date_gmt":"2021-01-21T18:05:08","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-ways-the-next-altcoin-bull-cycle-will-vastly-differ-from-2017s\/"},"modified":"2021-01-21T21:05:08","modified_gmt":"2021-01-21T18:05:08","slug":"3-ways-the-next-altcoin-bull-cycle-will-vastly-differ-from-2017s","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-ways-the-next-altcoin-bull-cycle-will-vastly-differ-from-2017s\/","title":{"rendered":"# 3 ways the next altcoin bull cycle will vastly differ from 2017\u2019s"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3e55b5c0273\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3e55b5c0273\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-ways-the-next-altcoin-bull-cycle-will-vastly-differ-from-2017s\/#Bitcoin_and_Ethereum_dominate_but_L2_tokens_will_catch_up\" >Bitcoin and Ethereum dominate but L2 tokens will catch up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-ways-the-next-altcoin-bull-cycle-will-vastly-differ-from-2017s\/#Todays_successful_projects_offer_staking_and_DeFi_integration\" >Today\u2019s successful projects offer staking and DeFi integration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-ways-the-next-altcoin-bull-cycle-will-vastly-differ-from-2017s\/#DeFi_governance_tokens_give_investors_a_voice\" >DeFi governance tokens give investors a voice<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 ways the next altcoin bull cycle will vastly differ from 2017\u2019s <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>A recent report from CoinMetrics suggests that when a new altseason starts it will play out in a way that is vastly different from the market of 2017-2018.\u00a0<\/p>\n<p>According to the authors of the report, the arrival of institutional investors and their interest in Bitcoin (BTC) and Ether (ETH) has fundamentally shifted the cryptocurrency market landscape. Tokens with real world utility, Layer 2 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> or attractive staking ecosystems will outperform the large cap tokens from pre-2017. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_and_Ethereum_dominate_but_L2_tokens_will_catch_up\"><\/span>Bitcoin and Ethereum dominate but L2 tokens will catch up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Institutional inflows firmly established Bitcoin and Ethereum as the chosen Layer 1 (L1) blockchains and this is reflected in the price action of the market since Dec. 1, 2020. As shown on the chart below, the only L1 coins to outperform BTC and Ether during that period were Cardano (ADA), Dogecoin (DOGE) and Decred (DCR). <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/cecf05ff-5272-4089-becc-d0775b1e867f.png\"><figcaption style=\"text-align: center;\"><em>Altcoin returns 12\/1\/20 &#8211; 11\/17\/21. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmetrics.substack.com\/p\/coin-metrics-state-of-the-network-9b0?utm_medium=email&amp;utm_campaign=cta\"><em>Coin Metrics<\/em><\/a><\/figcaption><\/figure>\n<p>Competitor L1 blockchains from previous runs, such as Litecoin (LTC) and Bitcoin Cash (BCH), have underperformed compared to BTC and both continue to see their share of the marketcap decrease as the conversation shifts payments capacity to store of value performance. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/9f3b52d5-b52c-489b-9524-e18d7ad16464.png\"><figcaption style=\"text-align: center;\"><em>Price vs. Marketcap dominance (LTC, BCH). Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thetie.io\/\"><em>TheTIE<\/em><\/a><\/figcaption><\/figure>\n<p>So called \u2018Ethereum Killers\u2019 like Tron (TRX) and EOS have failed to live up to their lofty claims and are plagued with concerns regarding block producer collusion and centralized networks.<\/p>\n<p>Polkadot is the main stand-out L1 blockchain that has emerged over the past few months and what sets it apart is the team\u2019s decision to facilitate the overall growth and interoperability of the blockchain ecosystem rather than dominate it. This explains why the altcoin has rallied 85% in 2021.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Todays_successful_projects_offer_staking_and_DeFi_integration\"><\/span>Today\u2019s successful projects offer staking and DeFi integration <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here is where this altseason begins to diverge from the last. Staking, governance tokens, and the integration of DeFi are the primary drivers in this market as users want more involvement in the growth and direction of each project. <\/p>\n<p>Decred (DCR) is a perfect example of this emerging trend. Created in the image of Bitcoin with a maximum supply of 21 million tokens, the network combines PoW with PoS to allow all members of the community the opportunity to get involved and earn rewards. <\/p>\n<p>A built-in governance mechanism gives token holders a direct say in the future of the project, and the release of the Decred Decentralized Exchange (DCRDEX) on Oct. 21, 2020 triggered the DCR price to rally from 11.68 to a new high of $67.80 on Jan. 8. <\/p>\n<p>Cardano is making the case for its value as an L1 blockchain through the implementation of staking and discussions from creator Charles Hoskinson about bringing DeFi to developing countries once smart contract functionality is fully integrated. These developments helped propel a 100% increase in the price of ADA since the beginning of 2020. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"DeFi_governance_tokens_give_investors_a_voice\"><\/span>DeFi governance tokens give investors a voice <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The DeFi boom has been incredibly attractive to investors who are looking for a more hands on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach to interacting with emerging blockchain projects.<\/p>\n<p>The sector is a clear driving force in the market and since Dec.1 Uniswap (UNI), AAVE, Synthetix (SNX), MakerDAO (MKR), SushiSwap (SUSHI), and Curve (CRV) have all outperformed Ether and BTC. Note that they all include staking and governance functionality. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/5fc8a308-06d8-40a4-91f4-cb6081e36532.png\"><figcaption style=\"text-align: center;\"><em>DeFi Returns from 12\/1\/20 &#8211; 1\/17\/21. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmetrics.substack.com\/p\/coin-metrics-state-of-the-network-9b0?utm_medium=email&amp;utm_campaign=cta\"><em>Coin Metrics<\/em><\/a><\/figcaption><\/figure>\n<p>Perhaps the 2018 bear market that followed the euphoric 2016 to 2017 rally has created a more discerning investor who wants more say in the development of the project rather than buying into the detail lacking whitepapers and lofty promises of anonymous developers. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/73f7af55-7eda-4f55-829c-5c51e56d4ef0.png\"><figcaption style=\"text-align: center;\"><em>Total value locked in DeFi. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defipulse.com\/\"><em>DeFi Pulse<\/em><\/a><\/figcaption><\/figure>\n<p>As can be seen in the chart above, the total value locked in DeFi continues to grow and recently hit an all-time high of $25 billion, a figure larger than the market cap of many of the top projects combined. <\/p>\n<p>Cryptocurrencies that offer real world use cases that meet the sector\u2019s demands and the ability to govern project decisions have emerged as the most desirable features for today\u2019s retail investor.<\/p>\n<p>Institutions may have chosen Bitcoin and Ether as their preferred investments but the battle for Layer 2 dominance between tokens that function as Ethereum alternatives is clearly where retail investors are placing their attention and this is what will drive the next altseason. <\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-ways-the-next-altcoin-bull-cycle-will-vastly-differ-from-2017-s\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 ways the next altcoin bull cycle will vastly differ from 2017\u2019s &#8221; A recent report from CoinMetrics suggests that when a new altseason starts it will play out in a way that is vastly different from the market of 2017-2018.\u00a0 According to the authors of the report, the arrival of institutional investors and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":159857,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvZmU3NmFmNDUtZTlkMS00ZGI0LTlkNmItM2Y5NWFlM2YyYjRkLmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74937,75167,74863,74860,74868,75916,74891,75326,74939,75168,89215,88700,73785],"class_list":["post-159856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-price","tag-chainlink","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-defi","tag-dex","tag-ethereum","tag-ethereum-2-0","tag-market-analysis","tag-polkadot","tag-sushiswap","tag-uniswap","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/159856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=159856"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/159856\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/159857"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=159856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=159856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=159856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}