5 Next Cryptocurrency To Explode October 2021 Week 2
The cryptocurrency market continues its mini-comedown after recent exuberance. Its overall value stands at $2.38 trillion, 1.6% lower than yesterday. Bitcoin (BTC) is the main cause of this slide, with the coin falling by 4% in the past 24 hours. However, a range of altcoins have jumped in the past day. This suggests that the current rally has merely shifted its focus. As such, we list below our 5 next cryptocurrency to explode. This covers coins that have good long-term as well as short-term potential.
5 Next Cryptocurrency To Explode
1. Bitcoin (BTC)
BTC may be down, but it would be foolish to count it out. At $55,223, it has dropped by 4% in the past day. However, it’s up by 7% in the past week and by 35% in the last 14 days. Thanks to its recent rally, it’s now only 15% away from its current ATH of $64,804, set in April.
BTC presents a couple of technical indicators which, when appearing at the same time, are arguably bullish. On the one hand, its 30-day moving (red) has elevated well above its 200-day average, indicating a new trend. On the other hand, its relative strength index has dipped below 40. This suggests that, at the present moment in time, it’s being oversold a little. In other words, we’re in the eye of a bullish storm, and now’s a good time to enter at a discount.
Indeed, there are numerous reasons to believe that $55,000 may only be the beginning of BTC’s end-of-year rally. Most notably, institutional interest in BTC appears to be increasing once again.
For one, JPMorgan released an investment note last week indicating that institutions are turning away from gold and towards BTC as an inflation hedge.
Other pieces of news substantiate this suspicion of growing institutional activity. For instance, US Bank launched its own bitcoin custody service last week. At the same time, George Soros’ fund confirmed that it does indeed have BTC in its portfolio (without giving a particular amount).
George Soros’ fund owns bitcoin, CEO confirms https://t.co/IsISSC1hO1
— CNBC (@CNBC) October 7, 2021
Encouragingly, the SEC even approved a Bitcoin ETF last week. This is the Volt Equity ETF, which tracks companies invested in BTC (e.g. MicroStrategy) and Bitcoin-related activities. It may not be a direct ETF, but it highlights how the tide may be turning for the cryptocurrency.
2. Ethereum (ETH)
ETH still isn’t keeping up with BTC at the moment, but this is arguably a good thing for investors who want to buy cheap. At $3,445, it’s down by 1.8% in the last 24 hours. It’s also down by 2% in the past week, although it’s up by 23% in the last fortnight and by nearly 800% in the past year.
As with BTC, ETH is in a position where its 30-day average remains above its 200-day, but its RSI is still low. This again indicates a good opportunity to enter its market before it gets too pricey.
And according to a JPMorgan report from a couple of weeks ago, it may start getting pricey very soon, since a growing number of institutions are preferring ETH over BTC right now. At the same time, ETH appears to be leaving exchanges.
Another big exchanges outflow of $ETH was spotted.
Over $402m worth of $ETH left centralized exchanges yesterday.
Since the $1.24b outflow happened on September 15, the price of #Ethereum has increased by 3%.
Next stop for ETH? pic.twitter.com/IdKRu1Xpqc
— IntoTheBlock (@intotheblock) October 8, 2021
This all suggests a supply and price squeeze. And if this weren’t enough, Ethereum has been burning a portion of transaction fees since the London hard fork of August 5. That means its supply is shrinking.
9.17k $ETH were burned yesterday 👀
Since the deployment of EIP-1559, a total of 342.9k ETH has been burned.
Check out the new #Ethereum supply metricshttps://t.co/Kk7UslZUPc pic.twitter.com/ySoIfpb8bu
— IntoTheBlock (@intotheblock) September 22, 2021
In fact, the supply squeeze doesn’t stop there, because ETH is also being locked up in Ethereum 2.0’s staking contract.
A breakdown on the #Ethereum staking contract.
The Ethereum 2.0 staking contract has become the largest holder of $ETH.
There are now 7.84m ETH, meaning that the contract has been growing at a pace of 23,442 Ether per day, with a total 51,200 unique addresses depositing. pic.twitter.com/VTlYy6AWyg
— IntoTheBlock (@intotheblock) October 5, 2021
Taken together, these factors all make it impossible for us not to put ETH in our list of the 5 next cryptocurrency to explode.
3. Avalanche (AVAX)
AVAX has had a good 24 hours, rising by 4.5%, to $55.70. It is, however, down by 14% in the past week and by nearly 7% in the last month.
Now is the time to get AVAX as it begins a new uptrend. Looking at the chart above, we can see that its 30-day average has begun the process of catching up — and passing — its 200-day average. Likewise, its RSI shows that the market has begun flocking to it again.
And this isn’t surprising really, given AVAX’s fundamentals. Its total value locked in has now risen to $5.89 billion (according to DefiLlama), showing just how quickly its ecosystem is expanding. It was $4.6 trillion only a week ago, and $2 billion at the start of September.
Speaking of September, this was a big month for Avalanche. It was during this month that it announced a $230 million investment led by Polychain and Three Arrows Capital, an injection of capital that has acted as a very strong catalyst for the platform’s further growth.
📢 BIG News 📢@Polychaincap and Three Arrows Capital led a $230M investment in the #Avalanche ecosystem to support growth of the platform.https://t.co/T141NFEoIG
— Avalanche 🔺 (@avalancheavax) September 16, 2021
What’s particularly bullish about Avalanche is that, the more it’s used, the more it will burn in transaction fees. Again, this suggests a supply squeeze and, in turn, a price boom. This is why we’ve included AVAX in our list of the 5 next cryptocurrency to explode.
4. Fantom (FTM)
FTM has been one of today’s biggest losers among top-50 coins. It’s down by 7.7%, to $1.99. Nonetheless, this still represents a 40% rise over the past week and a 67% jump over the past fortnight.
FTM hit its current all-time high of $2.44 merely four days ago. Its current comedown is likely the product of the market letting off a little steam. Even so, its 30-day average remains comfortably above its 200-day, indicating support for its current higher level. At the same, its RSI is nearing 30, suggesting that traders are selling it a little too much. Put differently, it’s likely a good time to buy.
This is supported by the continued growth of the Fantom platform, a high-performance blockchain that harnesses Directed Acyclic Graph (DAG) tech to achieve instant transactions at very low cost. It recently celebrated hitting $4.8 billion in total value locked in, up from $1.6 billion as recently as the beginning of this month.
The Fantom ecosystem is growing by the day!
🔹 880k unique addresses
🔹 750k txs/day
🔹 32k smart contracts deployed
🔹 $4.8b TVL https://t.co/twuodxQii5
— Fantom Foundation (@FantomFDN) October 13, 2021
With a rapidly growing ecosystem, it’s likely that FTM will continue to rally in the weeks ahead. This is also because the ability to stake FTM with the Fantom blockchain makes it (more) desirable to investors.
5. Solana (SOL)
SOL is up by 2.5% in the past 24 hours, rising to $146.65. This price represents a 10% drop in the last week, as well as a 16% fall in the past month.
SOL is another oversold/underbought coin that retains the promising fundamentals it had when it was rallying several weeks ago. Aside from Ethereum and Binance Smart Chain, its network accounts for the highest total value locked in of any blockchain. And at $11.69 billion, this TVL has risen by well over 600% in merely two months.
Given such growth, we’d expect SOL to begin rallying strongly again anytime soon. This is why it’s one of our 5 next cryptocurrency to explode.
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