Thanks to Ethereum, ‘altcoin’ is no longer a slur

Altcoin originally meant “Bitcoin alternative” because, in the early stages of cryptocurrency development, every blockchain-based currency was seen as a sort of Bitcoin (BTC) knockoff. Cryptocurrencies back then were mainly used for payments, such as Litecoin (LTC), XRP (XRP) and Peercoin (PPC). Altcoin was used as a catchall term for cryptocurrencies other than Bitcoin. 

That’s changed since 2011. With the emergence of more than 20,000 cryptocurrencies, each linked to different types of crypto projects and tokens. We have also seen the dexterity of coins stretch across sectors of public chains, decentralized finance (DeFi), layer 2, decentralized autonomous organizations (DAOs), stablecoins and more.

If “altcoin” refers to non-Bitcoin cryptocurrencies with the same characteristics as Bitcoin, this definition certainly no longer suits all 20,000.

The evolved definition of an altcoin is now far more pinpointed — generally referring to an alternative coin within a particular track. Altcoins are often more advanced in technical features or ecosystem applications, but so far, no altcoin has come close to surpassing Bitcoin in consensus, ubiquity, or market capitalization.

So all things considered, does Ether (ETH) still fit in this box?

Ethereum’s shifting altcoin status

Even Ethereum was first perceived as yet another Bitcoin wannabe in the eyes of investors when it first launched in 2015 — so much so that Ether didn’t even land in the top ten cryptocurrencies that same year. At that stage, Ethereum would have absolutely fit the old description of what was considered to be an altcoin.

Shaking off this stigma is another story. Ethereum’s status as the preeminent altcoin emerged from new developments in both the wider crypto ecosystem and its own operational capabilities. Technologically speaking, Ethereum hurdled over Bitcoin to become the first public chain to support smart contracts, essentially catalyzing DeFi.

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