Hot Bitcoin Summer. But Why Altcoins Are On The Rebound
Bitcoin has maintained its superiority in the market through the bull rally. Through the summer, bitcoin remains the strongest performer in the market. But the altcoins remain hot on its heels as prices rebound from two-month lows. Despite being the strongest performer of the summer, the DeFi space beat out Bitcoin to post the strongest recovery after hitting lows in July.
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A look back from June shows that bitcoin has outperformed ETH, as the price of the asset is up 25%. The digital asset has also outperformed the FTX’s DeFi Index and FTX’s exchange token index in the same time period. Positioning the number 1 cryptocurrency as the safest bet when it comes to investing in a crypto market stuck in a downward spiral.
DeFi Index Strongest Recovery Despite Poor Summer
The DeFi index currently ranks as the worst performer of the summer, with only a 6% upward movement from the beginning of June. DeFi Index hit a bottom in July, along with the rest of the market, but had lower lows compared to the rest. After the July lows, the DeFi Index is up 90% from its July lows. Making it the strongest performer from the July bottom.
DeFi outperforms after July 21st bottom | Source: Summer Performance Chart on Arcane Research
After bottoming out on July 21st, the DeFi Index saw massive gains as the market picked up steam again. ETH and other altcoins were not left out of this rally. ETH’s price is up 76% from the July bottom, while exchange tokens have recorded gains up to 67%. In contrast to this, bitcoin is up 54% from the July 21st bottom. Proving that the indexes that lost the most when the market bottomed out saw the strongest recovery with the rally.
Altcoins Outperform Bitcoin In 2021
A look at the charts shows 2021 has been the year of altcoins. Performances from altcoins like ETH have outperformed bitcoin since the beginning of the year by over 100%. Exchange tokens have also not been left out of this run. They have been the highest performers so far in the years. Gains have been in multiples of 100 as the exchange tokens have grown.
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The exchange token index ranks as the top performer in the market. Gains recorded year to date from exchange tokens have been 418%. Closely followed by gains from both ETH and the DeFi index. ETH’s gains year to date trails behind the exchange tokens with 330%. While the DeFi index has recorded gains of 285%. Comparing year-to-date performances puts Bitcoin as the worst performer of the four, only recording yearly gains of 55%.
Altcoin market cap over $1 trillion | Source: Crypto Total Market Cap Exclude BTC on TradingView.com
The altcoins have no doubt maintained the highest performances in the market compared to bitcoin. BTC outperformed the alts for the summer, but yearly performances continue to be in favor of altcoins.
Featured image from CoinDesk, charts from Arcane Research and TradingView.com