The success of bitcoin is whetting investors' appetite for alternative cryptocurrencies, including Ether, which is returning to peaks. The capitalization of all other cryptocurrencies increased by 400% in 2020.

In full surge, bitcoin takes other cryptocurrencies in its wake. The price of bitcoin has started the year 2021 with a bang, pushing day after day its all-time high, currently around 40,000 dollars. A "crypto-euphoria" that brings the total market for digital currencies beyond 1,000 billion dollars, another record.

With more than $700 billion in capitalization, bitcoin effectively crushes all other cryptos and currently accounts for around 70% of the market. Its rise and performance are once again drawing investors' attention to "altcoins", digital assets that compete with bitcoin. In its shadow, the total market for these other cryptocurrencies is up 400% in 2020 to close to $300 billion, according to Coinmarketcap. Detail review.

Ethereum

It's no surprise, cryptocurrencies have always tended to go up and down together. In the wake of bitcoin, ether thus crossed the $1,200 mark in 2021, compared to $140 at the start of 2020. The Chicago Mercantile Exchange, or CME, recently announced its intention to add Ethereum (ETH) futures contracts to its offer - three years after the launch of Bitcoin (BTC) futures.

But the digital asset developed by Ethereum stands out for the potential of this decentralized platform.

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​Closely followed by all players and curious people in the world of cryptocurrencies, Ethereum defines itself as a "decentralized money creation network combined with a software development platform".

A technology that is not limited to financial transactions and whose promises of cost reduction and automation could shake up many sectors. ​Second cryptocurrency (13% of assets), ether is also sought after for this economic potential, while bitcoin is increasingly seen as a safe haven.

blockchain

Since its introduction in August 2020, the new Polkadot cryptocurrency has eclipsed the majority of existing virtual currencies. Launched in particular by one of the thinking heads of Ethereum and valued at nearly 8 billion dollars, it already ranks 7th among cryptocurrencies. Investors hope it will accelerate the long-awaited blockchain revolution.

Only the Ripple (XRP) project does not really manage to ride the bitcoin wave. Very far from its historic highs, the asset has fallen since the announcement by the American financial policeman (SEC) of legal proceedings against its leaders for an offer of unregistered securities. Ripple has been supported by major banks like UBS or Santander for the efficiency of its payment protocol. But many exchanges have since halted trading in XRP, accelerating its price crash.

Stablecoin

Pegged to the dollar, Tether is still the only “stablecoin” to feature in the Top 10 cryptocurrencies. A stablecoin is a digital currency backed by a fixed asset such as gold or the dollar, and serves as a hedge against volatility. Third in terms of capitalization, very far behind bitcoin and ether, the asset is nevertheless in the lead in transaction volume, which makes it the most widely used cryptocurrency in the world.

Presented as a digital dollar, it is more simply convertible. Although controversial, it remains a tool to gauge investors' appetite for cryptocurrencies.

The 4th cryptocurrency is now closely followed by Litecoin , the price of which has multiplied by 5 in a few months, allowing it to join the closed club of cryptocurrencies, with a capitalization of more than 10 billion.

Bitcoin dominance

But the excitement around bitcoin is not enough to really make all alternative cryptocurrencies take off. Their capitalization is still far behind the highs reached in January 2018, when it was close to $520 billion during previous bitcoin records. The asset only weighed about 30% of the market against two thirds currently.