According to a renowned crypto expert, if Bitcoin (BTC) continues to tumble, four Ethereum (ETH) competitors will have a grim future.
Pseudonymous trader Altcoin Sherpa warns on Twitter that smart contract-enabled blockchains Solana (SOL), Avalanche (AVAX), Polkadot (DOT), and NEAR Protocol (NEAR) are all ready to lose about 50% of their value if Bitcoin continues to fall.
I still think we see a short bounce before then but these demand areas getting tested a lot rn. pic.twitter.com/tudeiPx4fe
— Altcoin Sherpa (@AltcoinSherpa) May 26, 2022
Polkadot is now trading at $9.76.
The analyst then turns his attention to Solana, now trading at $41.79 at writing.
Altcoin Sherpa also examines the Avalanche, which is presently trading at $22.42.
The trader then monitors NEAR Protocol, currently trading at $5.05.
Bitcoin is currently trading at $28,730 (At the time of writing), a more than 28% decrease in the last 30 days.
One coin that may rise
While Altcoin Sherpa is pessimistic about the four Ethereum competitors, he believes TRON (TRX), a blockchain built as a decentralized storage and distribution network for social media and digital entertainment content, has some upside potential.
$TRX: 1 of the few coins you can look for longs; wouldn’t do it in this current area but Justin Sun is moving his shitcoin higher. If BTC stabilizes, I would assume this goes to .12. #TRON pic.twitter.com/p59ENKnlY5May 26, 2022
TRON might rise by almost 40% to $ 0.12 from present levels if the price of Bitcoin “stabilizes,” according to Altcoin Sherpa, as the crypto asset’s founder, Justin Sun, announces new projects.
Sun just announced USDD (USDD), an algorithmic stablecoin based on the TRON blockchain that is supposed to swap one for one with the US dollar. The market capitalization of the USDD is now about $577 million.
At the time of press, TRON was changing hands for $0.08.
Views on Bitcoin
The analyst further commented that there is every likelihood of Bitcoin pumping up to $ 35,000. Also, Sherpa believes that $ 20,000 is soon possible as BTC slowly bleeds out. A similar thing happened in 2018.
“$BTC: I keep thinking that we’re going to get a relief pump up to mid-high 30ks, but I’m not even sure we get that anymore. One reason why 2018 sucked was because of the way it slow bled down; this is feeling similar. This area is the last stop before 20k. #Bitcoin“
However, there are more market participants this time, so the chances of this slow bleed-out are low. Still, the market might bounce once before hitting the $ 20,000 mark.
“I didn’t think we would slow bleed as badly as back then due to more drivers being in the space today + better market structure. But it appears I’m wrong. I do think we eventually hit 20k, but I personally still think some small bounce before then.”
The overall crypto market is stumbling.
The markets have been severely downtrend since the start of the year. The terraUSD blunder exacerbated the situation. Since then, the market capitalization of the whole crypto market has plummeted by more than 25 %. The total market cap is now $ 1.182 trillion, down from $ 1.569 trillion since May 9. Overall, it is down by 61 % from its all-time high of $ 3 trillion mark.