While Bitcoin dominated headlines in February 2017 with its dramatic price swings driven by Chinese regulatory action, a quieter revolution was unfolding in the altcoin market. Dash, the privacy-focused cryptocurrency created in January 2014, was staging an explosive rally that would see its value more than double within a single month, catapulting it past established names like Monero, Litecoin, and Ripple to become the third-largest cryptocurrency by market capitalization.
TL;DR
- Dash price surges from approximately $16 to over $32 in February 2017, a 100% gain
- Dash overtakes Monero, Litecoin, and Ripple to become the third-largest cryptocurrency
- Ethereum gains nearly 50% during the same period, trading around $11.28
- Total cryptocurrency market capitalization expands significantly amid broad altcoin rally
- Bitcoin recovery from PBOC crackdown fuels renewed risk appetite across the market
Dash’s Meteoric Rise
At the start of February 2017, Dash was trading at just above $16 per coin with a market capitalization of approximately $118 million, according to CoinMarketCap data from February 10, 2017. By mid-to-late February, the cryptocurrency had more than doubled, breaking through the $32 level and reaching a market capitalization in excess of $230 million. This remarkable surge propelled Dash into the number three position in the global cryptocurrency rankings, a position previously held by far more established projects.
The rally was particularly impressive given that Dash had been trading in relative obscurity compared to Bitcoin and Ethereum. Created as a fork of Bitcoin in January 2014 by developer Evan Duffield, Dash distinguished itself through its focus on privacy features and faster transaction times. Its Darksend mixing technology and decentralized governance model were increasingly attracting investor attention as the broader cryptocurrency market gained mainstream visibility.
Ethereum’s Continued Ascent
Dash was not the only altcoin posting significant gains in February 2017. Ethereum, the second-largest cryptocurrency, was also experiencing strong upward momentum. On February 10, 2017, ETH was trading at approximately $11.28 with a market capitalization of just over $1 billion. Over the course of the month, Ethereum would gain nearly 50%, benefiting from growing developer interest in its smart contract platform and the expanding ecosystem of decentralized applications being built on top of it.
The Ethereum network had been operational for less than two years at this point, having launched in July 2015. Despite the controversy surrounding the DAO hack and subsequent hard fork in 2016, the platform was demonstrating remarkable resilience and attracting an increasingly diverse range of projects and developers.
The Altcoin Landscape in Early 2017
The broader altcoin market in February 2017 was a dramatically different landscape from what investors would encounter even a year later. The top ten cryptocurrencies on CoinMarketCap for February 10, 2017 included familiar names alongside projects that would eventually fade from prominence:
- Bitcoin (BTC) — $988.67, market cap $15.97 billion
- Ethereum (ETH) — $11.28, market cap $1.00 billion
- XRP — $0.006289, market cap $233 million
- Litecoin (LTC) — $3.77, market cap $188 million
- Monero (XMR) — $11.98, market cap $167 million
- Dash (DASH) — $16.67, market cap $118 million
- Ethereum Classic (ETC) — $1.25, market cap $112 million
The total market capitalization of all cryptocurrencies stood at roughly $17.7 billion — a figure that would grow exponentially in the months ahead as the ICO boom of 2017 attracted billions of dollars in new investment capital.
Market Drivers Behind the Rally
Several factors contributed to the broad altcoin rally in February 2017. First, Bitcoin’s recovery from the PBOC-induced sell-off demonstrated the cryptocurrency market’s resilience and renewed investor confidence. As BTC rebounded from the $900 level toward $1,200, risk appetite returned to the market and capital flowed into alternative cryptocurrencies seeking higher returns.
Second, the anticipation of a potential Bitcoin ETF approval by the SEC was drawing mainstream media attention to the cryptocurrency space for the first time. This increased visibility benefited not only Bitcoin but the entire cryptocurrency ecosystem, as curious investors explored altcoins offering different value propositions.
Third, the geographic diversification of cryptocurrency trading away from China created opportunities for altcoins that had stronger communities and adoption in Western markets. With Chinese exchange volume declining, coins popular with international audiences gained relative prominence.
Steem Stumbles
Not every altcoin participated in the February rally. Steem, the cryptocurrency associated with the Steemit social media platform, suffered a decline of over 35% during the month. Despite its innovative model of rewarding content creators with cryptocurrency, Steem struggled to maintain its January valuation, demonstrating that the altcoin market was already showing signs of selective investment rather than uniform speculation.
Why This Matters
February 2017 was a pivotal month for the altcoin market that foreshadowed the explosive growth that would define the rest of the year. Dash’s surge to the number three position demonstrated that the cryptocurrency market was expanding beyond Bitcoin, creating space for projects with different technical approaches and use cases. The fact that a privacy coin could overtake established payments cryptocurrencies like Litecoin and Ripple signaled a growing demand for financial privacy tools in the digital age. Meanwhile, Ethereum’s steady climb reinforced the narrative that programmable blockchain platforms represented a fundamental innovation. Together, these developments laid the groundwork for the ICO boom and the massive expansion of the cryptocurrency ecosystem that would unfold throughout 2017, ultimately pushing total market capitalization to unprecedented heights.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
Dash at #3 market cap. read that again and let it sink in. we really lived through that era
Dash doubling from $16 to $32 and flipping LTC and XRP was the original altseason teaser. everyone thought privacy coins were the future. then Monero ate Dashs lunch
the Evan Duffield governance model was actually innovative for 2014. DAO budget voted by masternodes. too bad the coin itself became a nostalgia play
ETH at $11 and people thought $11 was expensive. those were the days