Why altcoins left behind are as volatile as tokens rank at the top?

Every time I look through the price graph on some data.coms, the first thing that comes into my sight is the seemingly rather stunning price curve showed on the pages. And this phenomenon seems to be quite wide ranging.

As we can learn from the snapshop above , all the tokens ranked on the top, from the NO.1 Bitcoin to the NO.7 Stellar share the same fluctuant trend in their price graph.

If the practical reality of fluctuation in the top tokens is something related to the immature within the mechanism in crytocurrency, the changeable attitude from the authority toward the tokens, and the character of being highly speculative, as we mentioned in the previous article, then why are those tokens which left far behind on the list, which gain far less attention from the public and authority, can be also that unstable in its price.

Just as BTCM, the tokens ranked 1537 on the list, actually shows a similar trend of price change in the picture.

Therefore, this article is going to investigate the causes of the fluctuation in the price of tokens ranked low on the list.

1.The whole system of crytocurrency is interconnected

 

According to citicoins.com, there has been 1624 crytocurrency circulating in the market. Although most of them are created to fit into different fields ranging from finance, payment, education or even spots, many of them are interconnected. For example, the BTCM we mention here is a currency and system based on the smart contract of ETH and it’s expected that there will be more than 50 newly-debuted tokens which forked from Bitcoin in the market this years. Therefore, price changes in Bitcoin or ETH are surely to cause price change in those tokens that derivate from them accordingly.

2. Some tokens are based on the weak foundations

Since the advent of Bitcoin and blockchain technology, the market has spawns a substantial number tokens in different fields. However, the key to gaining a foothold or even standing firm in the market is whether the industry is profitable enough. Uncertainty within an industry will cause fluctuation in the price of token and whether the industry is profitable or not will finally decide the trend of price change and , to a very last degree, even the fortune of the coins.

For example, Stellar is a system that aims to streamline the process of cross-border transfer, and there is always a strong demand for a more efficient and cheaper money transfer service, which leave room for growth for the technology and tokens.

While when it comes to tokens which launched for other purposes, such as WeAreSatoshi which is launched to memorize the father of Bitcoin and human’s innovative spirits, there is less support in it for a long lasting development and stability.