2021 Will Be the Year of Altcoins, Some of Them Will Try to Register With the SEC

2021 Will Be the Year of Altcoins, Some of Them Will Try to Register With the SEC

Source: Getty Images

Bitcoin did not overcome the $30K level but still pleased the holders with its rising. However, many market participants agree that the growth of BTC is limited, and other opportunities for profitable investments should be found. 2021 could indeed be the altcoin season.

2020 has shown how large organizations can influence the crypto market. The American Securities and Exchange Commission (SEC) destroyed the most hyped crypto project TON (Gram) by Pavel Durov, and also dealt a crushing blow to the most functional blockchain – Ripple (XRP).

Preliminary hearings on the case will be held on February 22, Ripple still hopes to defend its business. On the other hand, the decision of giant PayPal to add support for four cryptocurrencies was very positive for the industry. In addition to Bitcoin, these cryptos are Ethereum, Litecoin (LTC), and Bitcoin Cash (BCH) (second, fifth, and seventh places in terms of capitalization). All three altcoins showed gains on this news. Ethereum is doing better than others due to the successful start of the transition to Ethereum 2.0. In addition, ETH is strongly supported by DeFi projects. Experts believe that it is the decentralized finance tokens that will give the greatest profit to investors, as it was in the middle of 2020. Since they all work on the Ethereum blockchain, ETH will also show good dynamics and can rise to $1000.

LTC takes a special place. This lightweight fork of bitcoin is likely to catch the attention of investors when bitcoin rises too high and it makes no sense to invest in it. LTC in this case will have significant growth potential.

Regulators, institutions, and large financial institutions will continue to influence the market, both negatively and positively. CoinGecko provides an example of a positive impact. According to the site, after the SEC lawsuit against Ripple, other tokens that can be considered as securities also dropped by 20% -50%, including XLM (Stellar), XEM (NEM), TRX (Tron), XTZ (Tezos), CRO (Crypto.com Coin), NEO (Neo). However, the only DeFi token CEL (Celsius Network), which was registered with the SEC, rose by more than 80% in a week. Perhaps this example will push other projects to register with the SEC as well. However, the Celsius Network management warns that registration was not the only basis for the growth of the token. In their opinion, the point is in the functionality of the platform, which enables lending and supports the leading altcoins and bitcoin. Since the beginning of the year, CEL has risen by over 3700%.