Cryptos

Hot Bitcoin summer. Altcoins are rebounding, but why?

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Bullish rallies helped Bitcoin maintain its superiority in markets. The market’s best performer throughout the summer was bitcoin. Altcoins, however, are struggling to recover from two-month highs. DeFi was the best performing space this summer, but it beat Bitcoin to post the strongest recovery since July’s lows.

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Flashbacks from June show that bitcoin outperformed ETH, as the asset’s value rose 25%. The digital asset also outperformed ETH and the FTX Exchange Token Index in the same time period. The number one cryptocurrency is considered the best option for investors in a crypto market stuck at a downward spiral.

DeFi index: Strongest recovery despite a weak summer

The DeFi Index currently ranks as one of the worst performers of the summer, with a 6% decrease in performance since June. The DeFi Index, along with the rest, reached a low in July. However, it had lower lows that the rest. The DeFi Index is now up 90% since its July lows. It is now the best performing index since July’s bottom.

DeFi outperforms following July 21st bottom| Source: Summer Performance Chart on Arcane Research

The DeFi Index experienced massive gains after it hit a low on July 21. However, the market rallied and the index posted huge gains. This rally has included ETH and other altcoins. The price of ETH has risen 76% since its July low. However, exchange tokens have experienced gains of up to 67%. Bitcoin is up 54% over its July 21 low. It is clear that the indices that suffered the most when the market bottomed had the strongest recovery after the rally.

Altcoins surpass Bitcoin by 2021

A glance at the charts will show that 2021 was a year of altcoins. Since the beginning of the year, altcoins like ETH have outperformed Bitcoin by more than 100%. Trade tokens were also included in this race. They have been the most consistent performers throughout the years. As the trading tokens increased, the wins multiplied by 100.

Similar reading: Bitcoin dominance falls as market hits $ 2. trillion, altcoins win| Bitcoin dominance declines as market hits $ 2 trillion, altcoins take over

The Exchange Token Index is among the most successful in the market. Year-to-date gains made from trading tokens were 418 % Closely following were the gains of ETH (and the DeFi) index. ETH’s year-to date gains are below exchange tokens with 330%. The DeFi index saw gains of 285%. The year-to date performance comparison shows that Bitcoin is the worst performing of the four, recording only 55% annual growth.

Total market capitalization of TradingView.com altcoins

 Source| Source: TradingView.com: Crypto Total market Cap Excludes BTC

Altcoins have been able to maintain the highest market performance compared with bitcoin. BTC performed better than altcoins in the summer, but year over year performance continues to favor altcoins.

Featured image from CoinDesk. Charts from Arcane Research and TradingView.com.

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