Bitcoin’s recent breakout above
$7,000 is dominating the crypto news cycle, but behind these numbers are
other actions worth examining. Notably, although altcoin prices have
been volatile, altcoin development and adoption has been surging. Major
platforms such as Dash, NEM, Bitshares and Neo are quietly taking steps
designed to bring them into the mainstream. Given their growth, it is
clear that, despite its tremendous rise in valuation, Bitcoin will be
far from the only significant digital asset moving forward.
Like many altcoins, Dash has
experienced declines across the board over the last eight weeks. It is
currently trading at $270, down from $400 in late August. It is also
significantly down against Bitcoin. Nevertheless, in many ways Dash is
in a very strong position. Dash can now be purchased with fiat on a
number of exchanges, such as CEX.io and Quoinex.
Dash is also creating partnerships with a wide range of crypto
services, all with the stated aim of making it a commonly used currency.
For example, in October, Wirex added Dash to its payment system, making it possible to use the crypto anywhere Visa is accepted.
A closer look at Dash’s growth
reveals that it is usually a parallel option to Bitcoin in the crypto
space. Notably, most Bitcoin ATMs also offer Dash, and most crypto
payment systems are quickly implementing altcoin capabilities, with Dash
as a key Bitcoin alternative. Given that Dash is designed specifically
as a currency, and that it has many features Bitcoin lacks (such as
scalability and anonymity), it should be considered a major competitor
to Bitcoin, despite its much smaller market cap and fiat value.
Many multi-functional crypto
platforms are also growing rapidly, despite recent price declines. These
platforms are similar to Ethereum in that they offer smart contracts
and the ability to create custom tokens. NEM is trading at $.16, down
fifty percent since early September. However, NEM adoption and
development continues to grow. the NEM.io Foundation has announced a $40
million expansion plan, and it is building a blockchain center in
Malaysia to promote global innovation. The foundation is also working
with Blockchain Global to build a cryptocurrency exchange based on the
Bitshares and Neo are also rapidly
establishing a much stronger presence in the crypto space, despite
significant declines in value and market share over the past few weeks.
The Bitshares decentralized exchange continues to grow, as many see it
as a superior alternative to its centralized counterparts. China-based
Neo continues to rapidly expand, forging a wide range of partnerships
across financial and business sectors. Other platforms such as Iota,
Qtum, and Nxt are also moving ahead.
Current valuations and market caps
may be important to short-term traders, but given the tremendous
volatility of crypto prices, it is foolhardy to equate a
cryptocurrency’s true value with its fiat trading price. Understanding
the core features of a specific crypto, its adoption rate, and its
unique strengths and weaknesses provides a far more accurate answer.
History has demonstrated that when revolutionary technology is
introduced, the public usually favors the most useful platform. When
viewed in this context, it becomes clear that many altcoins are
Bitcoin’s incredible price increase
is a clear testament to the public’s growing acceptance of
cryptocurrency. Of equal importance is the solid foundation being laid
by altcoins in preparation for their own mass adoption. These
developments are playing a key role in moving the blockchain revolution