While Bitcoin’s price has been incredibly settled, and for traders quite boring, there has at least been some action in the altcoin space with a number of top 10 coins gaining well, including some smaller projects. Cardano, for instance, is up 85 percent in the last 10 days.
This has sparked a conversation in the ecosystem that an altcoin season could be around the corner. Altcoin seasons have often come when Bitcoin has not been active, and the fact that there is also less derivatives action as well really means traders could head to the altcoin space.
But, the danger with an altcoin rally is that it is often predicated around pure speculation as traders look for a potential big gain, even if it is a pump and dump. The last altcoin rally came in early 2018 after Bitcoin dropped from it’s all time high, but it was still focused around the ICO hype.
This time around, if an altcoin season does appear, there might be a very different outcome as Changpeng Zaho, the CEO of Binance, explains:
“Not all alts will pump during the next #altszn. If a project has been around for 3 years but not much to show for, then… A few that have consistently pushed development will thrive,” he tweeted.
If the Binance CEO is right, it would indicate a far more mature and growing cryptocurrency ecosystem. The time in between the last altcoin season and now has been tougher for the smaller projects to get through and survive, but for those that have, there is evidence of building and progress.
These types of coins and projects are the ones that deserve to grow and expand if there is a bigger focus on them. The actual focus from investors should be more focused on the project too as there is a higher degree of understanding and knowledge around.
Blockchain and cryptocurrency potential has also been on the up recently and the desire for more solid and dependable projects that do offer actual use cases and potential and not just an opportunity to make quick money.
Leaving speculation behind
The fact that Bitcoin is not as wild as it was in the last few weeks has painted a picture of what the expectations are from the cryptocurrency space when it comes to investing. Some still crave volatility and the potential to profit, but many are looking for better projects and the chance to be part of the next technological revolution.