Bitcoin is flirting with all-time highs, but that other cryptocurrency you might have heard of, Ethereum, has actually been outperforming big, bad bitcoin over the last 12 months.
Alts are also rockin’
Bitcoin is the biggest, but hardly the only, cryptocurrency out there. Alternative coins (altcoins) like Ripple and Litecoin have been trending upwards in part because they’re drafting on bitcoin’s months-long bull market. Broadly speaking, “Bitcoin leads and the altcoins follow,” Peter Wall, CEO of London-based Argo Blockchain, told CNBC.
Ethereum, in particular, is having a banger of a 2020 because of the hype around DeFi.
- DeFi = Decentralized Finance, a movement to build decentralized versions of traditional financial instruments like lending platforms, options trading, and currency exchanges. DeFi systems are typically built using Ethereum’s blockchain technology.
Zoom out: Altcoins in general have a stigma because of the lack of regulation and a laundry list of horror stories involving scammy coin offerings. But, as DeFi gains more traction and institutional investors warm up to bitcoin, altcoins could benefit.