Ethereum, Litecoin and Large-Cap Alts Rally as Bitcoin Price Goes Over $50,000

Today, many believe 2021 will be the year of altcoins. The reasons for this are the significance of Bitcoin, the connection between coins and the first cryptocurrency, and current trends.

Back in 2019, Binance analysts came to the conclusion that trends in the cryptocurrency market were formed in the process of correlation between altcoins and Bitcoin. Along with this, they noted that the late bull and early bear phases in BTC also had an impact, causing herd thinking in the market. Given the interest of retail and institutional investors, as well as large companies and corporations (like Tesla) regarding Bitcoin in recent months, it appears that this phenomenon is still relevant today.

Crypto bubble 2021?

Should we expect a “bubble”, as it happened in 2017? Experts believe that today BTC is going through confident, organic adoption growth. It is not the process typical of a bubble. The situation now looks much more stable than in the previous bull market. The steadily increasing number of new BTC addresses proves it. Three years ago there was a sudden peak, then the “snowball” lost its power.

Liquidity: BTC to Altcoins

BTC is currently in a bullish trend. The upward trend will be long-term, according to experts. The prerequisites for this are the growth of traditional financial markets, as well as the printing of fiat by central banks.

Altcoins have become more popular in bull markets over time. To get more profit, one needs to invest in promising altcoins that still have room for growth.

As of press time, the BTC rate is about $55,000. This means that the rate should rise to $110,000 for your investment to double. That is, its market capitalization should grow by $1 trillion. To achieve such a result, in the case of Ethereum, $150 billion is needed, and for Litecoin only $10 billion. If you find these numbers appealing and wish to exchange your BTC to LTC, or ETH LTC, use the convenient and transparent Godex converter. 

Let’s find out the prospects for ETH and LTC in 2021.

Ethereum: an altcoin for a trillion?

The annual growth of the coin was 665%. Its uniqueness lies in its goal to give developers space for creating and publishing distributed applications without the participation of third parties.

Despite the fact that ETH increased by only 3% over the past 7 days, experts call it promising for 2021. The reason is the expected Ethereum 2.0 update, implemented step by step.

When the BTC rate reached $58,000, the price of ETH broke the psychological level of $2,000, which was followed by a correction that reflected on the Ethereum as well.

DeFi on the Ethereum blockchain

Decentralized finance (DeFi) has become a growing trend over the past few years. The value of DeFi smart contracts has now reached over $13 billion. The market is growing exponentially, and Ethereum is the number one beneficiary in this emerging economy.

The more ETH-based projects are created, the more developers and users appreciate the protocol.

DeFi on Ethereum was launched a few years ago with only one MakerDAO application — a stablecoin system (crypto backed by a third-party asset). However, there are now many decentralized applications (dApps) that provide access to the full range of functions and financial services. Users can issue stablecoins, lend and borrow, and trade cryptocurrencies without having to deal with centralized third parties.

As it develops, there will be more applications for the benefit of users. This will have a direct impact on the utility and demand for ETH. The share of DeFi smart contracts is constantly growing. This fact is likely to provide the necessary price hike for the coin and improve the attitude towards Ethereum protocol in the future.

Is it worth getting LTC in spring 2021?

Some analysts believe Litecoin is extremely undervalued. If you follow the news, then you’ve probably noticed they are all about Bitcoin, Ethereum, Ripple (and its trial with the SEC), etc. On the other hand, Litecoin appears in news reports much less frequently and, probably, for this reason, it receives less attention.

However, Litecoin is considered “digital silver” not in vain. The block generation speed and the transaction speed of LTC are 4 times higher than that of BTC. The average commission is $0.04 versus $17.37 for BTC. It is much more profitable to carry out large and urgent transactions in LTC.  

In early November 2020, a $62 million transfer was made on the Litecoin network. The commission for this transfer was 50 cents. In this regard, Litecoin is a much better means of payment than other cryptocurrencies. LTC support by PayPal also plays a positive role, but the main reason for future growth is the undervaluation of the asset.

When Bitcoin reached $58,000, the price of one LTC reached $242. As of this writing, one LTC costs $215. This is about 1,5 times less than its historical peak recorded during the previous bull market in late 2017 and early 2018 ($375). As you can see, the asset still has large room for growth.