Crypto Coins Circle
- Chainlink’s link rose 18% to hit a high of $ 36.35, its highest level since May 19.
- XRP, Dot and Litecoin also posted gains.
- Investors amassed altcoins because they are cheap and have smart contract features.
Link, Bitcoin Cash, XRP, Dogecoin, Dot and Litecoin rose to new multi-month highs on Monday as investors opted for cheaper alternatives to Bitcoin, whose networks can support decentralized financial applications and smart contracts, analysts said.
A smart contract is code that enables people to make financial arrangements without the need for a centralized actor such as a commercial bank or broker.
Thanks to their ability to execute smart contracts, blockchain networks like Ethereum have been able to host more than just cryptocurrencies. They can contain different layers of software, host non-fungible tokens, and more. The Bitcoin network is slower, more expensive to use, and generally cannot handle this type of application.
Bitcoin is still by far the largest cryptocurrency by market value. But it has lagged behind some of the smaller tokens in the past few weeks.
“What makes Bitcoin less popular is its high cost and closed nature compared to Ethereum and other smart contract-enabled altcoins,” said Yuriy Mazur, head of data analytics at the CEX.IO broker.
“The crypto community believes that altcoins may rise 5 or even 10 times over the next few months, while bitcoin will slowly grind higher,” said Edward Moya, senior market analyst at OANDA.
Link climbed the strongest in the past 24 hours, up to 18%, hitting a session high of $ 36.35 – the strongest since the 19th Coinmarketcap. The coin is up 45% in the last month, compared to a 15% increase for Bitcoin.
“At this rate, we can see the digital token rise to $ 50 in about 14 to 21 days. We may face a correction along the way but the growth spurt is more likely at this point, ”said Mazur.
Chainlink underpins the link token and offers smart contracts similar to the Ethereum network. The company said in a tweet last week that there had been a record of 76 new integrations on the network in August, bringing the total to 755 on a blockchain like Ethereum.
“It appears that the demand for links is growing, as are their uses,” said Mazur.
“In addition, the growth seen last month has underscored the importance of the token and expanded its lead as the first network to enable the integration of off-chain data into smart contracts,” he added.
Ether last rose 0.6% to $ 3943 while other coins like XRP rose nearly 8% to $ 1.37 and Polkadot’s point rose 2.0% to $ 34.25.
Cardanos Ada hit record highs last week before the “Alonzo” network upgrade this month, but lagged the rest of the crypto complex, falling 0.4% to around $ 2.856.
“Crypto enthusiast favorites now include Ethereum and Cardano, which have shown impressive results lately and are going through the era of hard forks. Ethereum has already received an update and a Cardano update is coming, ”said Mazur.