Bitcoin and ethereum and the two most popular and widely used cryptocurrencies. Their combined value of about $1 trillion accounts for nearly two-thirds of the overall $1.6 trillion in digital currencies worldwide.
But that does not mean that these are the only preferred currencies. There are also plenty of other crypto- more than 1000 of them, as reported by research site, CoinMarketCap.
Many of these “altcoins” are preferred over bitcoin and ethereum for using in legitimate niche cases for specific industries. These altcoins are not just there for no reason, they are very popular in many niche markets.
One pair of cryptos that performed excellently are the two related tokens that are heavily geared towards online content creators – Theta and Theta Fuel. Theta has soared almost 400 percent in 2021 while Theta Fuel is up a massive 1700 percent.
Both these currencies run on a blockchain known as the Theta Network and allow PC users with un-utilized bandwidth to share video streams with others on the network. In return, they are able to mine tokens. Theta also enjoys the impressive backing from the digital media world, including YouTube co-founder Steve Chen and Twitch co-founder, Justin Kan, who are Theta advisors.
Many other altcoins are grabbing more attention in the crypto investing arena and many of those investors are saying that this is just the starting.
Greg King, the founder and CEO of Osprey Funds, a firm that is investing in cryptocurrencies said that it is still early days for blockchain networks and not all of them are trying to imitate bitcoin.
King said that his attention is currently on two smaller coins: polkadot and algorand. He described polkadot as like the internet of blockchains that helps connect different networks and transfers coins between them.
On coming to algorand, he said that it is more eco-friendly and greener than bitcoin, which has been criticized by many, including Elon Musk for the massive amount of energy that is used by people who “mine” the crypto on massive servers.
King is of the opinion that investors should divert their attention from the noise and hype of currencies like dogecoin and focus more on cryptos and tokens like polkadot and algorand that have legitimate uses.
Michael Sikorsky, chairman of Copia Wealth Studios said that his firm does own ethereum and bitcoin but also holds several other altcoins that are less mainstream. He also revealed that Copia Wealth Studios has positions in cardano and polygon, two other cryptos that are similar to algorand as they are not mined by energy-hungry supercomputers.
Sirosky also mentioned that investors should keep in mind that these, and other cryptos, will remain volatile.
“This is becoming a real asset class,” said Charlie Silver, CEO of Permission.io, which has a token named ASK that is aimed at e-commerce advertisers.
But he warned that successful “altcoins must have real utility. Those that are just gambles won’t be good for the industry,” Silver said. “But we do see this as the next big wave of investing.”