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11.5.21

Could Altcoins Rally Very Very High in 2021?

Last week
saw crypto bulls show faith in large-cap coins and Layer-1 blockchain pioneers as ETC, ADA, XTZ, and EOS all rallied to new highs.On Thursday, ETC (Ethereum Classic), rallied 80% to reach a new all-time high of $179. 

This rally may have been due to miners reacting favorably to ETC's dedication to a proof-of-work consensus mechanism. 

ADA (Cardano) also reached a new all-time high of $1.70 and signs of new record highs this week are positive. Meanwhile, XTZ (Tezos) also rallied 25% to reach an all-time high of $8.40.

Block.one, EOS's parent company, recently commissioned a report that concluded the protocol needs to increase the rate of inflation from 1% to a rate between 1.2% and 3.8% in order to increase financial incentives for voters and block producers. The prospect of higher staking rewards helped spark a 100% rally since 5th May.

According to popular trader Rekt Capital, the altcoin market could gain 27,000% if history repeats itself. At the start of 2017, the altcoin market cap flipped the previous cycle high to support. 

This level was the springboard that launched the altcoin market to a peak 27,000% above it i.e. December 2017. In 2021, altcoins flipped the 2017 high to support, and if history repeats itself, the potential altcoin market cap could be $152 trillion!

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