It’s been a rough year for altcoins. Most of them have shown a significant decline this year, while Bitcoin continues to dominate the market. At the time of writing, Bitcoin accounts for over two-thirds of the entire market value. Hence, many are wondering if we are witnessing an “altcoin apocalypse” of sorts. A few industry experts offer their take on the future of altcoins while YouHodler offers up a few solutions for altcoin traders and Hodlers.
Altcoin hype is over, but the best may be yet to come
One of the hottest topics in today’s crypto market is the state of altcoins. Will we see a new altcoin season bloom as we did back in 2017, or are they done for good? This year has been the year of the Bitcoin, with the BTC dominance rate reaching beyond 70%. However, Binance CEO Changpeng Zhao (CZ) argues that while the altcoin hype is over, that is not necessarily a bad thing.
On Twitter, CZ stated that “the difference between the 2017 #altszn and the next one is that this one won’t just have whitepapers. Projects in the next #altszn will have products and users […] the industry is much healthier now.”
CZ was referring to the bull run of 2017 when thousands of ICO’s raised funds based on their frail ideas, whitepapers, and aggressive marketing tactics compared to actual working products. Now, the initial hype is over, but the utility of ICO’s and STO’s is not dead yet. In the future, bad coins will cease to exist, while projects with real uses cases will thrive.
On this topic, Ilya Volkov, CEO of FinTech platform YouHodler stated that “the altcoin market cap is slipping, but it is far from being destroyed. We are amid a new altcoin rebirth. Many, once popular, altcoins will find it very hard to make a comeback to their all-time high, if at all. Yet, there are still many promising altcoins with real use cases and revenue generation models that will outline the new trajectory of the altcoin market.
In general, all experts conclude that the future of altcoins is still yet to be determined but will rely solely on a given project’s ability to provide firm use cases.
The future of altcoins is still unclear
Even the comments above, it’s still unclear what the state of leading altcoins like Ethereum or Cardano will be. However, this uncertainty is normal. YouHodler has a range of different products that will protect your crypto portfolio in the event of an “altcoin apocalypse” or “altcoin season 2.0.” Using traditional crypto-backed loans, and altcoin-backed, Bitcoin loans, YouHodler ensures protection in either direction.
BTC loans as a tool to thrive in altcoins’ situations
Aside from traditional, crypto-backed loans in USD, EUR, or stablecoins, YouHodler is also one of the only platforms to offer BTC loans backed by altcoins. Here’s how both methods can help in the case of an altcoin death or bull run.
Crypto Loans: Using altcoins as collateral for an instant crypto loan, users can receive up to $30,000 in USD, EUR, or stablecoins. This helps users utilize the value of their altcoins without having to sell. If the value of their altcoins increases during the loan term, then the users keep all the profits. If altcoins take a negative turn in the other direction, then users can take comfort since they already have the cash and did not lose any additional money.
Bitcoin loans: A new feature on the YouHodler platform, Bitcoin loans, uses altcoins as collateral for a loan received in Bitcoin. This lets users hedge their altcoin assets against Bitcoin while users can benefit from having the profitable, “digital gold” in their wallets.
We never know when the next major altcoin bear or bull market will occur. So, head to YouHodler today and start preparing yourself with our diverse crypto loan and Bitcoin loan features.