As December 2016 draws to a close, the cryptocurrency market is delivering a remarkable Christmas present to investors who bet on alternative coins. While Bitcoin dominates headlines with its dramatic surge past $900, a closer look at the year’s performance data reveals an even more compelling story: several altcoins have dramatically outperformed the world’s first cryptocurrency, posting gains that would make even the most seasoned traditional market investors take notice.
TL;DR
- Monero (XMR) leads all altcoins with an extraordinary 1,969% gain against the US dollar in 2016
- Ethereum (ETH) posted approximately 700% growth against USD despite the turbulent DAO hack aftermath
- Siacoin (SC) gained 500%, while Storjcoin (SJCX) and Factom (FCT) delivered 290% and 222% returns respectively
- Bitcoin’s own 100%+ annual rally was outpaced by at least six alternative cryptocurrencies
- Privacy-focused coins and decentralized storage tokens emerged as the year’s strongest thematic performers
Monero: The Undisputed Champion of 2016
Monero’s performance in 2016 has been nothing short of extraordinary. The privacy-focused cryptocurrency gained an astonishing 928% against Bitcoin and an even more impressive 1,969% against the US dollar over the past twelve months. Trading at just 0.00107593 BTC on Christmas Day 2015, XMR has climbed to approximately 0.011 BTC by December 2016, according to data from Cryptocompare and CoinMarketCap.
The coin’s market capitalization tells a similarly dramatic story, jumping from roughly $5.1 million in late 2015 to over $131 million by December 2016. Monero’s surge was fueled by growing demand for transaction privacy, particularly after the coin’s integration into several darknet marketplaces in September. Although XMR experienced a notable correction after peaking in early autumn, it has been steadily recovering since November, demonstrating resilient underlying demand.
At a price of approximately $9.65 per coin on December 24, 2016, Monero has firmly established itself as the fifth-largest cryptocurrency by market capitalization, trailing only Bitcoin, Ethereum, Ripple, and Litecoin on the global rankings.
Ethereum’s Resilience After the DAO Crisis
Ethereum’s 2016 journey has been the cryptocurrency equivalent of a rollercoaster ride. Despite suffering a catastrophic blow from The DAO hack in June — which resulted in the theft of approximately 3.6 million ETH — and the controversial hard fork that followed in July, the network’s native token has still managed to deliver approximately 700% gains against the US dollar for the year.
The hard fork, executed at block 1,920,000 on July 20, effectively split the Ethereum community in two, giving birth to Ethereum Classic (ETC) as a separate chain. While ETH experienced significant price declines following the fork, the second-half recovery has been steady. As of December 24, 2016, Ethereum trades at approximately $7.27 with a market capitalization of roughly $634 million, maintaining its position as the second-largest cryptocurrency.
Against Bitcoin specifically, Ethereum has gained 333% over the year — a remarkable feat given the existential challenges the project faced mid-year. The continued development of decentralized applications on the Ethereum network and growing institutional interest have helped sustain investor confidence throughout the turbulence.
Decentralized Storage Tokens Break Out
Beyond the headline-grabbing performances of Monero and Ethereum, 2016 has been a breakout year for decentralized storage projects. Siacoin (SC), the native token of the Sia storage platform, has gained approximately 500% against Bitcoin over the past year. Sia’s proof-of-work blockchain and smart contract system allows users to rent disk space from one another, creating a decentralized alternative to cloud storage giants.
Storjcoin (SJCX), another decentralized cloud storage token, delivered approximately 290% returns against Bitcoin. While both SC and SJCX experienced significant corrections from their mid-year peaks, patient investors who held throughout the year were rewarded with substantial profits. The emerging narrative around decentralized data storage as a use case for blockchain technology has clearly resonated with the market.
Factom and Dash: Steady Performers
Factom (FCT), the Austin-based blockchain startup offering audit and records validation services, has posted a solid 222% gain against Bitcoin in 2016. Trading at approximately $2.54 on December 24, Factom has quietly built demand for its enterprise-focused services, attracting investors looking for blockchain projects with real-world utility beyond speculative trading.
Dash, the privacy-focused cryptocurrency positioning itself as a Bitcoin alternative, has gained approximately 81% against BTC over the year. While its returns are more modest compared to Monero or Ethereum, Dash has reached several important milestones in 2016, including integration with multiple cryptocurrency wallets and payment services, as well as launching the industry’s first interwoven AML/KYC compliance solution. At roughly $9.83 per coin, Dash ranks as the seventh-largest cryptocurrency with a market cap of about $68.6 million.
Altcoin Market Snapshot: Christmas Eve 2016
The broader altcoin market presents a diverse landscape as 2016 comes to an end. Litecoin (LTC) holds the fourth position by market cap at approximately $4.55 per coin, while Ethereum Classic (ETC) trades at $1.12 in the sixth spot. Zcash (ZEC), one of the newer entrants, commands a price of approximately $48.24 despite ranking only 18th by market cap due to its limited circulating supply of around 292,000 coins.
Dogecoin (DOGE), the meme-inspired cryptocurrency that refuses to fade away, maintains a market capitalization of over $25 million, trading at a fraction of a cent. Stellar (XLM) rounds out notable performers at approximately $0.0027 per coin with an $18.6 million market cap.
Why This Matters
The 2016 altcoin surge signals a maturing cryptocurrency market that is moving beyond Bitcoin’s shadow. While Bitcoin’s rally past $900 has captured mainstream media attention — with the BBC, CoinDesk, and other major outlets covering the story — the real story of 2016 may be the emergence of a diverse ecosystem of alternative cryptocurrencies, each serving different market needs.
Privacy coins like Monero have proven there is substantial demand for anonymous transactions. Decentralized storage platforms have demonstrated that blockchain technology extends far beyond payments. And Ethereum’s resilience through the DAO crisis has shown that even catastrophic events cannot easily derail a network with genuine utility and an active developer community.
For investors and market observers heading into 2017, the lesson of 2016 is clear: the cryptocurrency market is no longer a one-coin story. The altcoin sector has arrived, and its strongest performers are delivering returns that challenge even Bitcoin’s most optimistic projections.
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.
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