Altcoin Season Is Going on While BTC and ETH Are Flat

Altcoin Season Is Going On While BTC and ETH Are Flat

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While the two leading cryptocurrencies are showing sluggish dynamics, traders are trying to find market makers among altcoins.

As many analysts have forecasted, cryptocurrencies are showing the greatest growth in the decentralized finance (DeFi) segment. The new lending platform Alchemix (ALCX) in a short time after the launch raised funds in the amount of $500 million. Users can borrow here loans, which are then repaid through deposits or by other means. Alchemix accepts deposits via the DAI stablecoin on the Ethereum blockchain, which the platform converts into its own alUSD stablecoin for lending. Holders of deposits on the Alchemix platform can lend up to 50% of their deposit or pay off their debts in DAI or alUSD using their share of the collateral. As noted by CoinGecko. The ALCX token rose 435% over the week from less than $280 to a high of nearly $1,500.

Another DeFi token, Inverse.Finance (INV), rose even more, soaring 449% from $377.6 to $2075. INV allows users to invest without loss using any token through a dollar-cost averaging (DCA) system. The profit is transferred to the used crypto asset as long as the user holds INV tokens. The growth of INV is associated with the launch in February of its own Anchor Protocol, which forms the market based on its own synthetic stablecoin DOLA.

According to experts, a successful launch of DeFi tokens does not necessarily mean the same successful continuation. The DeFi market remains the most volatile and highly risky. However, traders’ attention to lesser-known tokens could be another trend in 2021. Two analysts who are known in the industry as BitBoy Crypto and Crypto Rich discussed the prospects for two more coins.

Ether-1 (ETHO) is a new attempt to provide an uncensored internet hosting platform. Users can receive passive income by becoming the nodes of this hosting. Websites that will be hosted in decentralized hosting cannot be deleted. Analyst BitBoy Crypto is confident that such projects have a bright future due to the recent egregious incidents of censorship on the Internet. People will always support freedom of opinion. This means that decentralized hosting will grow. Now the capitalization of Ether-1 is only $2.7 million.

Another market demand is personal security. And in this area, the Sentinel (SENT) project is developing, which provides services of a decentralized virtual private network (dVPN). Analyst Crypto Rich notes that the project is built with closed source in order to better protect against regulators and intelligence agencies. Mainnet will launch soon on Cosmos (ATOM). The capitalization of the project is still small, only about $37 million.