Bitcoin price has surged to such vertiginous highs that even Tesla’s Elon Musk couldn’t help but share some warning. Still, in the microcosm of Bitcoin, countless users around the world are scrambling to snag a front row seat on its rollercoaster ride through the stock market.
But, beyond that microcosm, what are the effects of Bitcoin’s rally on other cryptocurrencies? Will Bitcoin leave the rest of the digital currencies in the dust, send them to oblivion? Or will the consequences be positive?
Buying the rest
Based on what has been happening recently, it appears Bitcoin is not alone in its ascent. The Bitcoin price surge has positively impacted other crypto assets. Ether, the Ethereum blockchain’s native token, saw significant price increases over the past weeks. It has already crossed the $2,000 level last February 20, 2021. Other cryptocurrencies like Aave, Cardano, Uniswap, Nem, Polkadot, Huobi Token, and Chainlink have likewise hit their respective record highs.
The rise of Ether, which is regarded as the #2 cryptocurrency (next only to Bitcoin), is stirring excitement among crypto enthusiasts. Its success comes at an opportune moment, when Ethereum has just upgraded its network and switched to “proof of stake” from “proof of work” with its staking model for validating transactions.
The reinvigorated crypto market is showing signs of greater opportunities with companies like Blox Staking offering innovative services in response to the recent developments. Blox Staking touts the world’s first fully non-custodial Eth2 staking tool. Other companies are also taking advantage of the renewed interest in crypto and altcoins.
Pundits project that Bitcoin’s price increases are likely to be sustained for some time. The momentum appears to have not maxed out yet. This growing price and popularity may not be the same for other digital currencies, but it is safe to say that Bitcoin’s success has indeed helped other cryptos surge or possibly gain some traction.
The search for the next bitcoin
With Bitcoin price reaching stratospheric heights, it makes sense why crypto investors are turning to other cryptocurrencies. It’s difficult to say when the surges will stop. Tesla’s well publicised purchase of $1.5 billion worth of bitcoins is not going to forever drive the price upwards. It will eventually retreat as the interest dampens.
That’s why crypto players are already looking for the next crypto they can bet on. They are searching for something with a relatively low price but has high potential to gain popularity sooner or later. Ether is apparently already being considered as the next big thing, but others are also in the running.
Investopedia lists Litecoin, Cardano, Polkadot, and Bitcoin Cash as the crypto assets most likely to attract interest and attention. There is also reason to believe that Chainlink, Binance Coin, Tether, and Monero can follow the same path BTC and ETH have taken.
Nobody can guess exactly what will happen next to Bitcoin and the other cryptocurrencies. However, the major upward movements of crypto prices indicate that the mainstream adoption of crypto is no longer improbable. As businesses and governments start embracing the idea of alternative and decentralized currencies, crypto’s retreat into irrelevance looks more remotely possible than ever.