Bitcoin (BTC) is currently the largest cryptocurrency by market capitalization this year. At the same time, the number of altcoins or alternative digital currencies such as Ethereum, Lite Coin, Dogecoin, and Polkadot has also begun to grow in the market rapidly.
What Are Altcoins?
Altcoins generally refer to various cryptocurrencies other than bitcoins. While BTC and ETH account for almost 70% of the cryptocurrency market, there are thousands of other cryptocurrencies out there flooding social media with memes and jokes.
Ethereum – Price Shoots Up To 2k
Ethereum (ETH), Solana (SOL), and Dogecoin were down more than 3% over the past day, up from nearly 7% 24 hours earlier.
The price of Ethereum (ETH) skyrocketed after Elon Musk announced that he had personally invested in the cryptocurrency. The tech billionaire spoke at the ₿ Word conference on Wednesday (July 21, 2021) and alongside Twitter comments, pushed the value of Bitcoin’s rival to above $ 2,000.
Some analysts have warned that the recent fall in prices may be part of a long-term trend. Others consider it will eventually be forgotten as Bitcoin rises to new all-time highs in 2021.
Figure 3: https://twitter.com/yesiamronnie/status/1407185246907289603?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1407185246907289603%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Findianexpress.com%2Farticle%2Ftrending%2Ftrending-globally%2Fcryptocurren
Dogecoin – Million-Dollar joke.
For example, Dogecoin, an open-source, peer-to-peer cryptocurrency, is an altcoin inspired by memes.
It started as a joke in 2013 but has recently become more and more popular. To the surprise of its co-founders, it is now one of the most demanded cryptocurrencies by market capitalization, reaching an all-time high of nearly 74 cents in May.
Figure 4: https://images.news18.com/ibnlive/uploads/2021/02/1612757177_untitled-design.jpg
This is the result of many factors, including social media buzz from prominent figures, such as Elon Musk. The SpaceX and Tesla CEO has always been an avid supporter of Dogecoin on Twitter. However, he has also posted other altcoins on Twitter, such as Baby Dogecoin and Shiba Inu.
Figure 5: https://twitter.com/elonmusk/status/1410529698497630212?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1410529698497630212%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.cnbc.com%2F2021%2F07%2F13%2Fwhat-are-altcoins-elon-musk-tweets-about-baby
While it is unclear whether Musk’s support is serious, it appears that his tweets mentioning these altcoins have influenced their price and value.
Cardano – Every Ada Holder Right Now!
The real-time price of Cardano today is 2.10 US dollars, and the 24-hour trading volume is 5,525,323,552 US dollars.
Cardano has fallen by 0.39% in the past 24 hours. Currently, Coin MarketCap ranks 4th, with a real-time market value of US$67,162,767,041. Its circulation is 32,025,787,327 ADA coins, the largest circulation which provides 45,000,000,000 ADA coins.
The Dangers Social Media Buzz…
In addition to Musk, many social media influencers have exaggerated various altcoins, sometimes through paid advertising.
It is no secret that encrypted Twitter is the most active and enthusiastic community on Twitter today. Smart marketers and financial influencers have realized that interacting with encrypted Twitter will increase their participation. However, remember, just because an influential person or executive is talking about cryptocurrency on Twitter does not mean it is valuable or worth investing in.
Experts warn that social media hype usually leads to financial losses. Therefore, investors should always conduct their research before deciding where to invest their funds.