Although the year has been a defining moment for Bitcoin, it has found itself on the sidelines where the amazing rally has recently stalled. At the same time, many alternative currencies, some of which were previously obscure, came to the fore, including memecoins. However, Arcane Research has identified potential changes in the coming year, which could alter the tides.
Arcane Research rightly noted in its latest report that 2021 was a year of ups and downs, but mostly upside. For example, Bitcoin has outperformed both the stock market and gold, despite having had an incredibly volatile year.
However, altcoins like Binance Coin inevitably stole the show, with BNB emerging as the top performer among the top three cryptocurrencies by market cap, gaining over 1,300%. BNB wasn’t the only one that broke the market leader.
With a 455% increase, Ethereum significantly outperformed Bitcoin in terms of price performance. As noted by the crypto analytics and research firm, 2021 has been a long season of altcoins and a tier one year.
However, one of the boldest predictions Arcane has made for the coming year is that Ripple (XRP) and Cardano (ADA) may break out of the top 10 leaderboard. XRP, once the third largest cryptocurrency by market capitalization, has slipped from the leading position, in part due to the ongoing Ripple-SEC struggle.
On the other hand, Cardano has shown huge potential, due to big promotions. However, its impulse paused and proved mostly unimpressive in the fourth quarter.
The appearance of the first layer
Layer 1 networks such as Solana, Avalanche, Terra Luna, Fantom, and Harmony have gained momentum, stripping Ethereum of its unquestioned position as the DeFi leader.
The outperformance by these networks is likely to continue into the coming year, according to Arcane, and these smart contract platforms will continue to strip users as well as funds from the Ethereum ecosystem. Hence, the price hike of their native tokens in 2022 would not be surprising either.
Memecoins fight dogs and ‘dumb’ pumps
The Internet is a strange place, but the field of cryptocurrency is even stranger. The year saw the most bizarre icons out of the box and straight into incredible rallies. While Bitcoin has shown tremendous strength all the time, market sentiment has shifted from extreme greed to fear.
As a result, investors have resorted to using altcoins. Thanks to Elon Musk, “The Technoking of Tesla,” Dogecoin, OG’s memecoin has finally found credibility. Riding on his overcoat, several canine-themed tokens appeared. One of the highlights that briefly flipped Musk – Shiba Inu (SHIB). And despite the lack of stronger narratives, Capital continued to leak these joke coins.
However, this may change. Arkan noted that most of these tokens will “eventually fade into obscurity, being historical relics from the absurd times of 2021.”
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