02 Aug 2021 10:31 AM +00:00

Altcoins Were Responsible For Crypto Growth in Mid-2021, According To Report

Altcoins played a prominent role in the growth of the cryptocurrency market during mid-2021, according to Crypto.com's latest report.

The site's research found that while bitcoin drove the market's increase in January-February, altcoins were responsible for the surge in cryptocurrency interest that took place in May.

Between February and June, the global base of cryptocurrency users grew from 106 million to 221 million, the report adds.

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Altcoins vs Bitcoin

The pinnacle moment for altcoin growth, according to Crypto.com, came from Elon Musk's criticism of bitcoin in May.

Here, Musk announced Tesla would no longer support bitcoin payments, citing the environmental impact of the currency.

Musk also publically expressed his support for Dogecoin - one of the leading altcoins that saw a huge price surge in May, reaching a high of $0.7376. Other 'memecoins' such as Shiba Inu followed, while more 'environmentally-friendly' coins that do not use Proof-of-Work (PoW) also gained.

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Crypto.com stated that 38% of cryptocurrency holders owned altcoins as of June 2021. In April, this proportion was 25%, with bitcoin and Ethereum losing some of their market share.

However, the price of these altcoins has dipped since the May peaks.

The report also notes that Ethereum did see some growth in the past couple of months. Investors continue to favour ETH - set to switch away from PoW to the less energy demanding Proof-of-Stake.

Bitcoin's early-2021 surge came as further companies expressed plans to support the cryptocurrency and invest in BTC. Such reports continue to exist in August 2021, although Amazon has recently denied it has plans to accept bitcoin in the near future.

Read More: Cryptocurrency Regulations Are A "Double-Edged Sword" Says Ethereum Co-Founder

[Featured Photo by Executium on Unsplash]