Investors believe Bitcoin will hold its footing this year, but certain altcoins are bursting at the seams with promise.

According to industry insiders, Bitcoin’s loss of supremacy as the most valuable cryptocurrency in market capitalization last year could lead to more significant growth for alternative digital currencies.

At the end of 2021, Bitcoin’s overall percentage of capital invested in cryptocurrencies fell to 39%. The investment flows were skewed toward altcoins. All cryptocurrencies are other than Bitcoin indicate that they are gaining momentum on the original cryptocurrency as investors put their money into tokens.

The consensus is that altcoins have a bright future as the crypto industry evolves. While there is no imminent prospect of Bitcoin being dethroned, the latest data shows that its dominance has back to 43% on a market worth of $740 billion. Some analysts even predict that Ethereum, which currently holds an 18.1 percent share of the overall cryptocurrency market capitalization, could soon overtake Bitcoin as the most valuable cryptocurrency, a scenario known as “The Flippening.”

“There is an evolution we’re seeing in the market, a move away from speculation, and a move toward utility. This demonstrates just how much the crypto market is maturing,” said Steve Ehrlich, CEO, and co-founder of crypto-asset broker Voyager Digital.

Aside from Ethereum’s positive development potential, analysts have identified Terra, Avalanche, Cosmos, Fantom, and CHZ as Bitcoin alternatives that could outperform their distinct characteristics and growth possibilities.

On March 7, crypto investor That Martini Guy tweeted, “Investing in pretty much any good #Altcoin right now will yield a huge profit in the future,”

Terra, a smart-contract blockchain with its LUNA coin, has gotten a lot of attention recently, partially because it now ranks second only to Ethereum in terms of total value locked (TVL) in decentralized finance. Terra presently has $25.3 billion in such contracts, compared to Ethereum’s 108.17 billion.

Also, read – Crypto Market Tracking – Cardano, Luna, and Solana Recovers 

Terra’s stablecoin ecosystem has been dubbed “next-generation digital money” due to its ease of use, minimal costs, fast settlement, and cross-border transaction functionality.

“The growth of the decentralized stablecoin UST, which drives LUNA’s growth, has been enormous; the UST market cap has increased 441 percent in the last six months,” said Marcus Sotiriou, a GlobalBlock analyst. “Equivalent amounts of Luna are burned for every UST coined. With a consistent demand, a decrease in supply leads to an increase in price.”

Industry experts have praised Avalanche, a programmable smart contract platform for decentralized apps that offers many benefits. “It has swiftly become a market leader due to its fast transactions, low prices, and ease of bridge to and from Ethereum,” Ehrlich added. “It’s evident that the market is looking for cheaper Ethereum alternatives that are also easy to use and reliable.”

According to GlobalBlock’s Sotiriou, Avalanche can confirm transactions in less than two seconds and benefit from a proposed decentralized identity solution. According to Sotiriou, it has a well-deserved reputation as the “fastest smart contracts platform.”

Some observers have commended Cosmos for its ability to foster an ecosystem of blockchains capable of cooperating and scaling with one another. According to Coinbase, Cosmos and its token ATOM is the 21st most valuable cryptocurrency by market capitalization, valued at US$7.8 billion.

“The inter blockchain communication protocol enables independent blockchains to connect, which I believe is critical for the success of crypto as a whole,” Sotiriou added. Sotiriou also mentioned Fantom, a smart contract token that significantly increased value last year. The token rose from 1.7 cents to $2.25 by the end of the year. It was recently trading at US$1.26, down from an all-time high of almost 63 percent in October.

“I believe the Layer 1 blockchain will continue to eat into Ethereum’s market share due to its reduced gas fees and improved scalability,” Sotiriou added. Nonetheless, Fantom’s prospects have been harmed by the announcement that creators Anton Nell and Andre Cronje intend to leave the project. Following the news on March 6, the token dropped by more than 21% during the session.

Sporting franchises are increasingly adopting fan tokens, which is increasing their appeal. CZH, a token related to the marketing platform Socios.com, has worked with over 120 major sports organizations, including the National Football League of the United States, the National Basketball Association, and the European Football Association, which is one of the standouts.

Sotiriou explained, “This is a sports fan engagement platform that allows sports and entertainment businesses to monetize their consumers.” “So far, football fan tokens have been the most popular use case. Fan tokens are already in use by FC Barcelona, Juventus, and Paris Saint-Germain, and I expect the platform to acquire significant traction in the run-up to the World Cup later this year.”

Other analysts warned that the global market uncertainty could dampen the worldwide desire for riskier investments. Bitcoin may appeal to investors looking for a haven in such a climate. According to Tony Sycamore, City Index’s senior market analyst for APAC.