Altcoin-Performance: Where Crypto Investors Earned Their Money in January
Bitcoin’s massive price rally at the beginning of the year was still rather slow compared to other cryptocurrencies. Instead, Altcoins were the real high-performers in January.
Bitcoin closed at $9,335 in January, continuing its rally since the beginning of the year. Compared to the December-low of $6,500, Bitcoin has gained more than 40% in value.
Despite its impressive return, Bitcoin was not January’s crypto market high-performer. Some Altcoins were able to outperform Bitcoin’s return significantly.
Gulden (NLG): 217% return
With a 217% return since the beginning of the year, Gulden had the best start into 2020 of all cryptocurrencies with a market capitalization of over $5 million. The currency increased from $0.006004 to $0.019026.
Gulden is a Litecoin fork and uses the so-called PoW2 protocol. The goal is to reduce the network’s energy consumption to 0.01% of the Bitcoin network, thereby solving one of Bitcoin’s most severe scalability issues.
Dash (DASH): 185% return
Dash rose from $41 to $117, which equals a return of 185%. On January 15th alone, the cryptocurrency gained 40% during just one day of trading, rising to $148 – although it lost some of its gains in the following days.
Analysts attribute the increase in value primarily to the economic and political crisis in Venezuela. After Bitcoin, Dash is the most widely used cryptocurrency in the country and is mainly used to hedge against hyperinflation.
Bitcoin SV (BSV): 178% return
Bitcoin SV is a spin-off of the Bitcoin Cash network. It launched in 2017 and aims to be an improved version of the original Bitcoin network. Currently, BSV is the fifth-largest cryptocurrency by market capitalization. Since the beginning of the year, it has appreciated by 178% from $96 to $268.
Ethereum Classic (ETC): 116% return
ETC gained 116% and surged from $4.49 to $11.74. Part of the gains was certainly due to the generally bullish market momentum in January. Besides, Binance listed ETC Futures and the market took an overall positive stance towards the Agartha Fork, which aims at improving the interoperability between Ethereum Classic and the Ethereum Blockchain.
Crypto is more than Bitcoin: Investors should diversify
January has once again proven that the crypto-market is more than just Bitcoin. Alpha hunters can significantly increase their trading profits through intelligent portfolio diversification.
But investor beware: Altcoins show significantly less liquidity than Bitcoin, which means that prices may not only rise quickly but also fall just as quickly.