Altcoins have become an increasingly large part of the crypto market since the beginning of 2021.
“Crypto and blockchain are about moving money and property onto the internet,” said Matt Hougan, Bitwise’s chief investment strategist. “It’s one of the largest addressable markets the Internet has ever attacked.”
In early 2021, Bitcoin made up more than 70% of the crypto market, according to TradingViews. By the end of July 2021, Bitcoin’s market share had dropped to 48% of the global cryptocurrency market of $ 1.6 trillion, with altcoins like Ether and USDC eating away at its dominance. In fact, according to Coinmarketcap.com, the crypto market now contains more than 11,000 different types of altcoins.
“Everyone is trying to do something that has never been done before,” Mati Greenspan, founder and CEO of Quantum Economics, told CNBC in an interview.
Altcoins fall into different categories. There are technology platforms like Ethereum, the blockchain on which Ether is built and which forms the basis for the growing movement of “decentralized finance”. There are stablecoins or digital currencies that are linked to real currencies or other assets. And then there are meme currencies like Dogecoin.
Check out the video below to learn more about the world of altcoins, the different types of altcoins, and the steps regulators could take to contain them.