The word "Altcoin" originally implied Bitcoin alternatives until 2011. Before that, every currency within the blockchain was seen as an alternative to Bitcoin.
During that time, one used cryptocurrencies mostly for various transactions. Thus, currencies like Litecoin and XRP were just alternatives to Bitcoin. Therefore, the altcoin was a catchphrase for every other currency in the crypto market, excluding Bitcoin.
Since 2011, the rapid expansion of the crypto market brought in 20,000 currencies. If we went by the previous understanding of altcoins, all these currencies had to fit under that category.
However, each token has its distinct properties and utility. Different projects also used these coins. Naturally, there was a dichotomy within the meaning and implication of altcoins soon after the emergence of several cryptocurrencies.
Thus altcoins gradually developed a more nuanced and direct implication. They now meant alternative coins within a specific field or track. While altcoins have great technical features and advanced performance in the blockchain ecosystem, it is yet to catch up with Bitcoin market capitalization or consensus.
Ethereum received a similar altcoin tag after its launch in 2015. The description suited Ethereum so well that one could rarely distinguish it as a separate currency. Thus, Ether failed to make it to the top ten cryptocurrencies that year.
However, Ether slowly shook off its predefined altcoin status with its technological advancements and efficiency. No wonder the token bagged its distinct identity against the generic non-bitcoin token assigned earlier.
Market analysts claim Ether's community aspects created a vibrant and interactive community. Thus, it is not just a token but an entire ecosystem, highlighting its role even more.
Additionally, the currency's recent shift from Proof of Work to Proof of Stake further highlighted its distinct role in the crypto market. The merge changed several factors about Ethereum, including a drop in energy consumption and security.
However, investors did not expect a sharp shoot in Ethereum prices, which also resulted from the merger.