Forget Bitcoin, Ether, altcoin Binance Coin price jumps WHOPPING 1,300% in 2021 | Tech News

Forget Bitcoin, Ether, altcoin Binance Coin price jumps WHOPPING 1,300% in 2021

Binance Coin price jumped 1,300% in 2021, Bitcoin increased 65% while Ether, the second-biggest token, rose 408%. Prediction is that the trend may continue.

By:BLOOMBERG
| Updated on: Dec 30 2021, 10:10 IST
Binance Coin
Bitcoin, Ether are world's biggest, but Altcoin BNB price jump has beaten them hands down in 2021. (REUTERS)

This year, the old guard of cryptocurrencies, like Bitcoin and Ether, have lost ground to tokens with greater returns. Researchers predict the trend may continue. Among the three largest digital tokens by market value, Binance Coin, or BNB, significantly outperformed its two larger rivals Bitcoin and Ether. The BNB altcoin -- issued by crypto exchange Binance Holdings Ltd. -- gained roughly 1,300% in 2021, according to Arcane Research. By comparison, market leader Bitcoin increased 65% while Ether, the second-biggest token, rose 408%.

BNB is used widely on Binance, the world's biggest crypto exchange by volume. It is also the native currency of Binance Smart Chain, a blockchain platform that supports smart contracts for use in decentralized finance (DeFi) and other applications. With BSC gaining adherents as a challenger to the Ethereum blockchain, that's helped fuel gains in the BNB token, according to Arcane Research.

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Other alternative coins, or “altcoins,” saw major gains in 2021, benefiting from an explosion in investor interest for digital assets and an expansion of the crypto ecosystem. Solana and Fantom, coins connected with other blockchain platforms that support smart contracts, outpaced Binance Coin's returns, for instance.

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“While Bitcoin showed strength in 2021, we've seen a constant stream of capital trickling down into altcoins,” the research firm wrote in a note. The firm's analysts predict the strongest momentum in tokens related to the metaverse and GameFi, along with “ETH-killers” targeting Ethereum.

Crypto Barrels Toward 2022 After Adding $1.5 Trillion in Value

(Bloomberg) -- Cryptocurrencies were peerless conduits of greed and fear in 2021, alternately minting and wiping out fortunes as they swung wildly while adding some $1.5 trillion in overall market value along the way.

Bitcoin, up more than 60% this year, absorbed much of the attention but had to share more of the limelight with the likes of Ether and Binance Coin as well as meme tokens such as Dogecoin and Shiba Inu.

In fact, Bitcoin's share of the crypto market shrank dramatically over 2021 as other tokens rocketed, a sign of how investor interest in digital assets broadened out despite — or perhaps because of — enormous volatility.

The decline in Bitcoin's dominance will likely continue next year “given the explosion of assets in the crypto space and the various use cases,” said Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore.

The overall market value of cryptocurrencies climbed by about $1.5 trillion in 2021 to some $2.3 trillion as of Dec. 17, according to tracker CoinGecko, which counts almost 12,000 tokens.

Bitcoin, the world's largest cryptocurrency, began the year with a 70% share of the market. That has fallen to less than 40%, in part as Ether's popularity increased. But money has flowed into other tokens too, and for some that trend could be a sign of potentially destabilizing speculative froth.

Controversy over Bitcoin's putative role in investment portfolios continues to rage. Proponents argue it offers a hedge against some of the highest inflation in a generation. But the token in 2021 tended to correlate more consistently with risk assets, like technology stocks, rather than inflation expectations.

The Bloomberg Galaxy Crypto Index's more than 160% climb this year far outstrips the jump in more conventional assets like commodities and global stocks, up 23% and 13% respectively. Of course, given the huge swings in crypto, the old adage of no pain, no gain also applies.

Bitcoin is now testing key technical support levels after a more than 30% drop from a record high hit just over a month ago. One is the 55-week moving average -- which in the past has sometimes provided a floor for selloffs -- while another is a level of about $44,100 implied by a Fibonacci study of the rally from the March 2020 trough to the November 2021 peak. The cryptocurrency has already broken below a trendline drawn from the beginnings of its surge during the pandemic.

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First Published Date: 30 Dec, 10:04 IST
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