Altcoins Drawing Interest from Millennials
Throughout 2021, cryptocurrency heavyweights like Bitcoin and Ethereum experienced sharp declines in value, however, the market showed remarkable resiliency and ended the year in bull market territory. As we begin another new year, cryptocurrencies are again experiencing sharp declines (hardly anything new for the month of January) and, while the most heavily capitalised cryptocurrencies, like Bitcoin, decline in value, other digital assets, referred to as “altcoins,” are gaining an increasing amount of attention from new investors.
What Are Altcoins?
Altcoins, an abbreviated way of saying “alternative coins,” are nothing other than digital assets not called Bitcoin. As of November 2021, there were over 14,000 altcoins trading across a wide array of crypto-exchanges operating on the market. The rate at which Millennials and members of the Gen Z demographic are piling into altcoins, more than any other generation, is sure to make 2022 an especially big year for these digital assets. These two groups account form a portion of society that has never known a world without the internet and their accelerated level of digital adoption and keen interest in digital assets is expected to drive the popularity and adoption of altcoins to new records.
The lot of these two groups account for the majority of the market’s “cheerleaders” or the digital asset crusaders loudly promoting their belief that cryptocurrencies are the vanguard of a financial revolution. And why not? It’s easy to understand how cryptocurrencies fit the lifestyle of these two groups. If we examine them a bit more closely, we see how technically adept they tend to become at a very young age, and this is what drives their preferences for financial transactions that are achieved through digital means over other more traditional methods.
Vendors haven’t failed to notice. Organizations, large and small, are recognizing the widespread adoption of cryptocurrencies among the younger generations as an opportunity to grow their own businesses. The list of organisations announcing their acceptance of cryptocurrency as a form of payment is steadily growing. The rapid adoption of altcoins by younger investors also sheds a bit more light on why mega-retailers, like Amazon, are investing so heavily in cryptocurrency and blockchain technologies.
Expect a Steady Rise in Altcoin Popularity
In the new year to come, it’s safe to anticipate that altcoins already experiencing a steady rise in popularity will pick up even more steam. Perhaps most notable of all, investors should develop a keen interest in the “metaverse” and the role it is playing not just in the lives of the younger generation, but in all our lives. These virtual reality worlds are developing economies all their own and many, like Decentraland and The Sandbox, have their own cryptocurrencies that players use to exchange online goods and even purchase virtual real estate.
Here are a few of the more popular altcoins to watch in 2022:
Solana (SOL): Up more than 13,000% in 2021. Logically, most think their opportunity to buy in has long since passed, but Solana has a reputation as a low-cost platform that can be very competitive with Bitcoin meaning there is room yet to grow.
Decentraland (MANA): We mentioned the metaverse earlier, and MANA is what they mean when they say “buying the metaverse." In the Decentraland metaverse, one can purchase virtual real estate, buy shop fronts, and so much more. MANA is the currency of this virtual world.
Chainlink (LINK): As the use of smart contracts continues to increase, so too will the value of Chainlink.
Altcoins give us many reasons to be excited about the future as these smaller coins offer more upside potential, but this market hasn’t yet matured – altcoin prices can be significantly affected by rampant volatility and it’s important for investors to keep this in mind.
Author: Greyson Kelly
Greyson Kelly is a business writer living in Milwaukee, Wisconsin. He writes extensively on technological trends, cryptocurrency, and ‘cutting edge’ industry topics. He has an MBA in Business and has over a decade of experience in communications and public relations.