A so called alt-season pump and dump is brewing as many of the lower-priced altcoins have started growing and pumping. The prices once again resemble 2017 when during the bull run many cryptocurrencies reached extreme valuations.
We see that once again unfinished projects like Cardano and Polkadot are allocated at the top ten and tokens like Uniswap or Theta are valued higher than many established crypto projects. This is another irregularity, a fundamental problem for the cryptocurrency market.
Cardano market cap at 38 Billion USD and Polkadot at 33 Billion USD
The publications for this coin are also systematically lying to the public. Take a look at the latest headline on Cardano, which was published just a few hours ago in u.today:
"Cardano Creator Charles Hoskinson Suggests ADA Could Be Worth $10"
This is the headline. But what is the real quote by Charles Hoskinson?
Charles Hoskinson claims he doesn't care if ADA is trading at $0.01 or $10
- from the same source
And this is the lead image covering this news story:
Image from u.today
This whole market is just tricks, shills, flawed narratives, and misleading titles and arguments. Before ADA it was the Chainlink "Marines", another fake army of bots in Twitter posting non-serious tweets and hyping Chainlink. We shouldn't forget the XRP army and occasionally the other kind of bot-armies that appear and try to hype vaporware out of their obscurity (i.e. Verge, Tron, etc..).
The alt season is noticeable today since Bitcoin keeps losing dominance for months and it is today around 58%, down a lot from the 70% dominance it was enjoying until a few months earlier.
Image from coinmarketcap.
The decline in BTC's dominance is not as rapid yet, as it was in 2017 and 2018. It is obvious, though, that a huge transfer of investors into outcomes is possible. Even a few tokens I have held for years have been unexpectedly rising for the past two weeks. I am happy that I make a profit from these, and maybe the profit can be a lot higher, but I am also scared of holding them for too long because I lived the 2017-2018 altcoin bull and suffered greatly from it.
Between June 2017 and January 2018 the altcoins gained so much momentum and it was Bitcoin Cash and Ethereum that challenged BTC and went very close to reaching the first spot in market cap terms. The flippening is a term created for the event that another cryptocurrency will pass BTC in total market cap. This is seen as something very expected in the future, as Bitcoin keeps losing dominance and the interest in other cryptocurrencies is growing.
Once again we see some projects that have vague foundations to justify having tens of billions of market cap. And all of them can grow higher too, however, this doesn't mean anything else except that we are in a bubble.
Image from Coingecko
When we see Cardano rising again out of nowhere and making a chart that just resembles its previous pump and dump of 2018 it is a great indicator. Besides that, there is a whole army of internet spammers allocated in the websites visited by new investors and in social media that matter to crypto like Twitter. It is scary investing in this asset that has performed 10,000% in only a year, without even having anything like a working product. Be careful and not be misled by the internet army of bots. This chart also tells me that the bull run is at dangerous levels and you don't want to get caught buying the top. This asset, Cardano, will certainly go down 99% over perhaps a year or two, exactly as it did previously.
I expect to see obscure altcoins reaching high valuations and pumping by 100x as part of the humongous pump and dump orchestrated in this market by the same whales and speculators as before.
Out of all the cryptocurrencies we see today, the only one not being in a bubble is Bitcoin Cash, as the price it currently holds is way lower than expectations and there also seems to be too much censorship and propaganda that suppresses the price to lower levels than the actual value.
Bitcoin Cash has lost its place in the top-10, however, there is no real concern in the community. Bitcoin Cash does not rely on marketing so much, but enjoys lately robust adoption. The community is the marketing of this project, with fewer words and more action, creating useful applications for Bitcoin Cash and onboarding merchants in the process of decentralizing payments and providing financial freedom for everyone.
Image from Bitcoin.com
I expect that Bitcoin Cash will also start growing soon and reach a very high valuation which will also be in bubble territory. While Bitcoin Cash is certainly undervalued today, it will be overvalued later. I don't expect to reach a price that will challenge BTC's dominance, however, with the current market trend, it should be priced around ten times higher, and probably it will go there.
It will be a bubble of course and later all crypto assets will have to deal with a bear market as this is how the market works for the time being. It is still all pegged to Bitcoin, all cryptocurrencies follow BTC price and the so-called market cycles. This may end when one cryptocurrency escapes the trend and starts performing on its own. Bitcoin Cash has the potential to escape BTC price fluctuations, as it is an asset that is growing in adoption and has an ever-increasing community, consisting of real people and not an army of Twitter bots.
At least Bitcoin Cash has a reason to keep growing as this won't be just hype, but systematic adoption, as this is what we are all working for.
Lead Image from Unsplash (modified).
Join me on the following networks:
