Cryptocurrency News

Which altcoins are more likely to catch the bounce?

After one of his most brutal weekends, Bitcoins and most altcoins show signs of recovery in a shorter time frame. While most 7-day and 30-day charts are still down 30% and 40%, the general sentiment in the market appears to be more sharper as investors watch their charts change from red to green.

Ethereum was probably one of the fastest altcoins that came back from a significant support area of ​​$ 1,600. The second cryptocurrency by market cap trades at $ 2,541 with a 2.6% gain in the daily chart and 35.6% in the monthly chart.

ETH with a boom in the daily chart. Source: ETHUSD Tradingview

Ethereum will undergo an update of its fee model with the hard fork “London”. EIP-1559 will be implemented and ETH will become a deflationary property. This has reinforced the theory among some users that ETH can become a more effective store of value than Bitcoin.

In the weeks before the crash, Ethereum was the only one altcoin Absorbing institutional interest from BTC-based investment products. In mid-May, while an estimated outflow of $ 98 million in bitcoin investment products was seen, Ethereum saw an inflow of $ 27 million in value.

For the first time, the second cryptocurrency by market cap saw more interest from institutions on this metric. The CoinShares report stated the following: “Investors are diversifying into and out of bitcoin” altcoin Investment Products ”. As seen in the chart below, negative price performance in the crypto market has affected asset flows in the past week.

Crypto asset flow
Source: CoinShares

Large capacity altcoins after bitcoin crashes

Apart from Ethereum, Polygon (MATIC) is the fastest bounce in the daily chart with 110% gain and 81.4% growth over its Bitcoin pair. As per the data provided by Daffy Pulse, the project has attracted more investors’ attention since its rebranding and climbed to the top 4 projects by Total Value Locked (TVL).

Altcoin Polygon MATIC
Polygon’s TVL is growing over a 30-day period. Source: Defy Pulse

As Reported By newsBTC, Polygon had been running hot since March 2021, when this blockchain outperformed the Binance Smart Chain (BSC), Avalanche, NEAT and other Ethereum L1 bridges. With more than 100 projects built on top of its solution, Polygon (MATIC) holds considerable potential for further acclaim.

Polkadot (DOT), Solana (SOL), Cardano (ADA), and Binance Coin (BNB) Seen a lot of resilience during the crash and looks set to make more profits in the coming months. BNB and Binance Smart Chain Ecosystem have proved that users are eager to participate in low-cost Defy ecosystem with fast transactions.

Projects such as Solana and Terra (Luna) and COPE are meeting this demand. Cardano is its smart contract platform, Plutus, and. Will launch Its ability to attract more users, developers and projects will be important for its immediate future.

Dog dem mem coins have been a “thing” during this phase of Bull Run. Dogcoin (DOGE) was the least affected during the accident, accordingly For research firm Messari. Elon Musk effect favors this particular The coin And most likely the crypto will remain a major factor in the market and its recovery.

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