Chennai: Altcoins, or alternative cryptocurrencies, are gaining traction because buyers find them cheaper than Bitcoins, which have hit new highs every day. Most of the capital has flowed into the top 5 altcoins – Ethereum (ticker symbol ETH), Ripple (XRP), Binance Coin (BNB), Stellar (XLM) and Tron (TRX). These have seen 4-5x growth. Bitcoin (BTC) has increased two-fold in terms of purchase volume in the last 30 days. According to Nischal Shetty, founder and CEO of WazirX, in addition to Bitcoin, many other tokens have grown enormously in the last week (see graphic). BNB grew by over 100%, Swipe (SXP) by 48%, Dash (DASH) by 41%, WazirX Token (WRX) by 14% and TRON (TRX) by 12%.
There is a whole wave of investors who are not only interested in the crypto narrative but also caused an explosion in altcoin purchases, cryptocurrency exchanges say. Sharan Nair, Chief Business Officer at CoinSwitch Kuber, said, “Most Indian investors are looking for the next bitcoin. They believe bitcoin is already expensive and are betting on altcoins in hopes of similar growth. “
Altcoins refer to all cryptocurrencies except Bitcoin and similar alternatives. Bitcoin’s success as the first peer-to-peer digital currency paved the way for this trend. Many altcoins try to take advantage of the perceived limitations of bitcoin. Cryptocurrency exchanges say the Indian market mirrors the global one. Buyers want to discover alternative coins as these are much cheaper and have aggressive growth potential.
Although bitcoin topped $ 50,000 this month, altcoins have topped it. Cryptocurrency exchanges say Indian investors looking to get involved in crypto have diversified their investment with currently 60% in Bitcoin and 40% in Altcoin. Previously, in December 2020, most investors’ portfolios were around 30% altcoins and 70% bitcoins.
“Bitcoin could be the reserve currency for the crypto world. Altcoins, however, offer very different perspectives. For example, Ethereum, the most popular altcoin in terms of market capitalization, is building a decentralized distributed computer network. It offers an alternative to using a Google Cloud. This means that it is fully auditable and every line of code can be read. Here the consumer pays for the interaction, and the currency is called Ethe, ”said Darshan Bathija, CEO of the crypto platform Vauld.
Regarding the demographics of Indian investors, Shetty said, “The participation of women has increased this year. In 2020, around 87% were male and 13% were female. Now the female traders have risen to 15%. “Bitcoin and its first alternatives like Litecoin and BitcoinCash eliminated middlemen for processing transactions. However, the middle men were still needed for contractual obligations. “This problem has been answered with more advanced alternatives like Ethereum, which can run smart contracts including decentralized funding,” said Sathvik Vishwanath, co-founder of Unocoin.