Since the launch of Bitcoin, massive gains have been recorded by those who entered early and lasted long enough. The same was the case with Ethereum, whose market capitalization has grown into the hundreds of billions. However, the growth this digital asset has already experienced over the years, has hampered how far it can grow over the coming years. This is why investors are looking elsewhere for bigger gains.
Bitcoin and Ethereum Gains Less
During the last bull market, it became clear that Bitcoin and Ethereum would not be able to give the kind of returns that early investors got. During the previous session’s low, bitcoin fell as low as $6000 but reached $69,000 during its peak. This was a 10-fold growth for the digital asset.
The case was similar to Ethereum, the second largest cryptocurrency by market capitalization, although it fared much better compared to Bitcoin. It has grown from its lowest cycle of around $100 to $4,800 at its peak. This was about 500 times the growth of digital assets.
BTC grows 10x | Source: BTCUSD on TradingView.com
However, its explosive growth has already turned investors away from it, not because it is not a good investment but because the possibility of a major explosion has been greatly reduced. An example is that from the current price of bitcoin, even if it reaches $100,000 per coin, it will still be less than 10x growth.
The same with Ethereum, although the digital asset holds more potential for greater growth compared to Bitcoin due to it being much smaller. If ETH grows to $10,000 per token, it will hardly be 10x.
Altcoins take the cake
Altcoins have outperformed market leaders like Bitcoin and Ethereum when it comes to gains in the latest bull market. Where these large digital assets were less than 500x, smaller altcoins like Dogecoin and Shiba Inu recorded ROI in the thousands.
Basically, meme coins have been infamous for such returns, but altcoins from other areas have seen the same kind of growth as well. FTM is a token that traded as low as $0.2 and peaked above $3.4 during the bull market. DOGE price made an impressive rally from $0.004 to $0.7 at the height of its rally.
However, this is only a small example of the many ways that altcoin has been a major investment during the bull market. With the next bull market expected to occur in 2024, it’s no surprise that investors are turning to tokens with the bottom line in hopes of picking up the next DOGE or SHIB.
Disclaimer: The following op-ed represents the views of the author, and may not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate of creative and financial freedom alike.
Featured image from Medium, chart from TradingView.com
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