What drives the market of Altcoins?

[@alymwehrli]

In my understanding, and considering both psychological effects based on personal beliefs and perceptions of value, cryptocurrencies like Bitcoin are scarce and therefore tend to cause the same effect that gold had in the past. This phenomenon can be explained by our evolution as a society and the evolution of money over time. The scarcer, the more useful, secure, and versatile something is, the greater the tendency for its price to increase. Some exceptions, such as cryptocurrencies that reflect a company's stock, tend to reflect its operating revenue base, cash flow, and other factors.

[allthebitandbobs]

There are multiple factors affecting the price of altcoins instead of just one or two. The real-world utility is something which can really back the coin, and the coin will have an inflating demand as the utility keeps on increasing. I would mostly consider investing in altcoins having a real-world use case as I know I can use these coins to get the most.

These coins also have comparatively less volatile price which makes them even less risky and a better choice for new investors like you. But do not consider this as a major factor, market conditions play an important role as well. You can't simply make profits because the coin has a real-world use, even the market conditions should be in your favour.

I think mass adoption is what will drive the market of altcoins as people mostly go for bitcoins if they want to invest in cryptos. This mentality should soon change, and people should consider altcoins to be on their portfolio to never miss a profit going forward.

[Accardo]

FOMO drives the altcoin market all the time, traders who missed out on altcoins like Polkadot and Chainlink during the 2021 ATH, would wish to grab similar kind of coins or same, despite trading at a low rate now, hoping to make huge profits in the next run. Lately, it seems like the bitcoin bull run doesn't shift the prices of altcoins anymore, so, the altcoin market is safe to say to be driven by traders who would pump and dump it for some profits.