The world’s leading cryptocurrency by market cap seems to be losing out to altcoins, most of which are flying while bitcoin consolidates below $40K.
The best performing altcoin in the crypto space this past week has been Polkadot (DOT), which has shot up the market cap charts since it launched last year.
Polkadot is a multi-chain protocol that integrates full interoperability with other blockchains by allowing them to link to the project as a sidechain. DOT also introduces revolutionary scaling solutions with its ability to process thousands of transactions per second. These feats, along with exploding use cases in the crypto space, have led some to dub it the latest ‘Ethereum killer’.
DOT’s ongoing rally that saw it climb from below $11 to top out at an all-time high of $17.316 has helped the cryptocurrency flip Ripple’s XRP in terms of market cap.
DOTUSD Chart By TradingView
As per data from CoinMarketCap, Polkadot is now the fourth largest cryptocurrency with a market cap of just under $16 billion.
The DOTUSD pair has surged by 85% in 2021 and by 75% over the past week. The altcoin is on fire and could soon hit $20, although traders should not rule out a pullback after the strong rally.
LINK Price Rises To New All-time High
Chainlink has soared by over 55% in the past three days after a stench of underperformance against Bitcoin. The altcoin kick-started a fresh rally that pushed it to a new all-time high of $21.70 earlier today.
The bulls continued to ride the momentum further and have now taken LINKUSD higher to its current price of $22.01.
LINKUSD Chart By TradingView
Is the Proper Altcoin Season Here?
Leading altcoins such as Polkadot (DOT), Aave (AAVE), and Chainlink (LINK) are starting to break higher in a serious fashion as BTC prices turn down. Investors are now wondering whether the “altcoin season” playing out over the past few days is here to stay.
Many expected the spark to kick off this altcoin resurgence to be BTC hitting the $20K milestone. However, the feat came and went at the close of 2020, and only now are altcoins showing serious signs of popping off as Bitcoin’s uptrend slows down.
If bitcoin’s recent rejection at $40K is a top, then altcoins might have another several weeks left to accumulate gains before a potential “blow-off top” forces the market to turn around.