CryptoCurrency

Altcoins and the Crypto Winter: Which One Is the Winner?

After Crypto Winter, Altcoins Enter the War.
The market has experienced numerous shocks as a result of the crypto winter, including significant layoffs in huge corporations and sell-offs in digital assets whose price movements had previously been steady. With a market value of more than $398 billion, Bitcoin (BTC) has been able to withstand the negative seas of $20,000, even though it is currently going through a brief recovery period around that threshold.

Due to the high red statistics seen over the previous several months, cryptocurrency traders from all around the world are now paying closer attention to the altcoin space and competing to be the best performance. Cryptocurrencies like Ethereum (ETH) have been falling precipitously; ETH is currently trading at $1,195 after breaking through the floor that was established at the psychological $2,000. In a similar vein, Dogecoin (DOGE), which lost all of its gains from the peak of $0.63, is now testing the same range it was in the start of 2021, around $0.06. It appears like DOGE is now finding support at this level and is attempting to gain traction despite the rangebound.

Another cryptocurrency that has witnessed a sharp decline during the crypto winter is Chainlink (LINK), which has tested the $7.05 handle, a level not seen since the end of 2021. Furthermore, Cardano (ADA) has been performing poorly, going back to levels seen in 2020 following a robust sell-off following a previous leg lower set during the week ending March 28. In other news, XRP is still below the $0.40 barrier and negative after a selling wave in March, solidifying the bears’ domination throughout the crypto winter and remaining close to the levels they tested at the start of 2021.

Which altcoin, except Bitcoin (BTC), has the best chance of prevailing after the crypto winter? More significantly, in the current market climate, which altcoin is the most appealing to invest in? Maria Stankevich, the Chief Business Development Officer at EXMO UK, said in an interview with Finance Magnates that she would not invest in any cryptocurrency or Bitcoin at this time. High-risk tactics are appropriate for developing markets when risk is well managed, but they are rarely justified during recessions and unstable times. She stated, “The circumstances surrounding Celsius and other significant cryptocurrency platforms emphasise the necessity of prudent risk management and meticulous project selection.

Additionally, Stankevich talked on the macroeconomic factors that might have had an effect on the cryptocurrency space: “Some people believe that macroeconomic factors, rather than Celsius’s problems, had an impact on the cryptocurrency market.” Many investors are attempting to sell high-risk assets due to the Fed’s tightening of policy and even the mere possibility of a significant rate hike. Many tokens have less liquidity in these circumstances, which increases the sensitivity of their prices to “whale” sales.

Home DAO’s CEO and Founder, Andrew Bittner, told Finance Magnates that Ethereum is expected to become the clear winner among Layer 1s as it continues to gain strength. “I don’t think anyone is doubting ETH as the primary chain to safely construct and utilise after this winter, and everyone else has taken a big step back. He said, “Polygon is very important to me because of its use case for speed and cheap transaction costs, as well as its potential to promote the adoption of new projects on their chain even during a market slump.

Web3 and Interesting Altcoin Projects
In addition, Bittner offered his thoughts on further cryptocurrency initiatives that would be worthwhile monitoring during the crypto winter. “Projects like IOTA, which will emerge from their shell because of their unwavering concentration on performance and utility and lack of marketing funding, stand to gain greatly once their use case of free transactions and blazingly fast speed reaches the news and IOT markets for adoption. Another pure use case type of material is helium. Their global architecture, featuring a distinct peer-to-peer wireless network, is becoming increasingly secure and has a vast use case, making it ideal for onboarding Internet of Things devices. Another significant opportunity for utility is the Graph.
The Blockchain Version of Google
For starters, this initiative is incredibly useful since it serves as the blockchain’s search engine—what Stankevich would refer to as “the Google of blockchain”—and users of the device are only now starting to ‘use’ it.
Stankevich stated, on the one hand, that purchasing cryptocurrencies from projects such as Avalanche, Near, and Polkadot, or any other on this list, is not a wise choice. Even so, Bittner said that the cryptocurrency space has had several booms and busts, including ICOs, Altcoins, DeFi, Memecoins, and NFTs, but he still thinks the moment is right for Web3’s real use case and utility.

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