Analysts predict a flip of the two leading cryptocurrencies and massive purchases of altcoins in early 2022.
In the last week of 2021, the leading cryptocurrencies have adjusted and consolidated. Meanwhile, bitcoin with a market share of more than 40% sets the trend, and altcoins follow the king of cryptocurrencies. But that may change in 2022. The market may have a new king – Ethereum.
Now the capitalization of ETH is half the capitalization of BTC. But for the cryptocurrency market, this gap is not insuperable. In 2021, the dynamics of ETH surpassed the one of BTC by 7.5 times. Since the beginning of the year, bitcoin has grown by 60%, while Ethereum – by 460%. The trend of 2021 was the entry of institutional investors in altcoins.
Previously, funds preferred to invest in bitcoin. However, 2021 has shown that investments in leading altcoins generate large returns. This process will continue in 2022, experts say. Ultimately, it will quickly lead to the fact that ETH will surpass BTC in terms of capitalization.
Raoul Pal, founder, and CEO of the specialized media Real Vision speaks about this. The expert notes that “ETH flippening BTC’s market cap will happen for sure”, but at the same time he suggests not to compare the two leading cryptocurrencies. He points out:
– One is the internet of value, and the other is a store of value. They’re not the same thing. The value of all of the mobile phone networks in the world is worth a lot more than gold, but nobody compares them. That’s stupid. But people compare these things.
Everything can change if bitcoin increases its functionality with smart contracts, and the fee drops. But so far there are no signs that this will happen. So Ethereum will continue to grow faster than bitcoin.
Some experts believe that bitcoin could still show exponential gains in this bullish cycle. Brock Pierce, celebrity actor and co-founder of Tether (USDT), believes that a $100K price for BTC in 2022 is very likely, and bitcoin has the potential to rise to $200K. Popular trader Nicholas Merten, aka DataDash, also hopes for a parabolic rally in BTC to $200K in 2022.
However, there are a lot of altcoin supporters. They expect an ETH rally to be followed by leading altcoins including Cardano (ADA), Polkadot (DOT), Avalanche (AVAX), Polygon (MATIC), and more. These coins have grown significantly in 2021 and will continue to rise in 2022, says popular analyst Benjamin Cowen. The expert made a proposal for an investment portfolio:
– The main projects that I follow are Cardano, Polkadot, Avalanche, MATIC, LUNA, Solana. It’s really hard to go wrong if you just look at the top 10 or 20. Get layer-1s, a couple of layer-2s, an oracle. I think that’s a great crypto portfolio right there.