According to data from the Bithumb Altcoin Index, the Altcoin market has increased 10 times compared to its lowest point in 2020. The reality is that virtual assets, which have increased 10 times in 2020, are common.
Markets collectively name all virtual assets except Bitcoin as Altcoin. If so, Ethereum, Bitcoin Cash, and Ripple all belong to Altcoin.
BTAI is an index produced to represent price trends in the virtual asset market other than Bitcoin, which is a real-time calculation of all Altcoin prices listed and traded on the Bithumb exchange in a market capitalization-weighted method.
There are two types of Altcoins. First, it is major Altcoins which are leading the market. Major Altcoins are based on such business achievements and social recognition. Another category is non-major Altcoins, many of which are scams. The expulsion of scam coins is currently in progress. Exchanges hope to create a healthy market and create a sustainable exchange industry through self-purification.
So why does graphs of Altcoin keep on rising?
First reason is the great rise of Bitcoin, which is a major player in this market. This is due to the fact that virtual assets have been recognized in the existing investment market creating various financial products based on Bitcoin.
It is also because of the performance of the Altcoins over the years. Altcoins, led by Ethereum, are making a variety of business results and sales, and have informed the world of their activities through disclosures about their businesses and milestone achievements.
Finally, it is a rapid supply of liquidity. Due to COVID-19, most countries supplied liquidity to the market on a massive scale. This encouraged the transfer of assets from the low-interest deposit market to the investment market, which had a significant impact on the stock market and the virtual asset market.
Then, various views on the question exists, “How long will this rise in the virtual assets market last?” However, this huge social experiment, which began with Bitcoin, should now be regarded as a status, and virtual assets with solid business fundamentals are expected to increase their value through sustainable management.
The AUC project, like a good trend of major Altcoins, will grow into a virtual asset that is gaining market confidence and reflected in value by achieving solid roadmaps and milestones through a business performance → increase in value → liquidity inflow → continuous reinvestment in business.