The two main cryptocurrencies on the market, Bitcoin and Ethereum, are correcting and reaching a value well below their historical highs, while some altcoins are taking advantage of the fall to gain prominence in the crypto market.
The data from CoinMarketCap show that the two main cryptocurrencies, From the market, Bitcoin (BTC) y Ethereum (ETH) has fallen by more than 10% on average in the last few hours. BTC's value losses continue after several weeks, while ETH, which had been leading the crypto market with growth of up to 40% per week, is also joining the fall.
Source: CoinMarketCap
According to analysts, there are several signs that are bearish for these cryptocurrencies in the short term, although the long-term bullish trend remains intact.
As the data shows, BTC has fallen by almost 17% at the time of writing, reaching a value of $45.700 per unit. In the case of ETH, the drop has been less significant. Still, the second-largest cryptocurrency in the industry has lost close to $1.000 per unit, which represents a 10% decrease from its all-time high of $4.350 on May 12.
El domain Bitcoin's current market share is below 40%, while Ethereum maintains 19%. On the other hand, as the correction of Bitcoin (BTC) continues and one begins in Ethereum (ETH), some altcoins, or alternative cryptocurrencies, are taking center stage in the crypto industry, with growth of up to 80% in the last 7 days.
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MATIC, ADA, XLM, DOT and SOL
The altcoins in the Top 20 cryptocurrencies with the highest returns this week are: MATIC, ADA, XLM, DOT y SOLOf these, Polygon's MATIC token, the most in-demand Ethereum scalability solution currently, recorded a new all-time high of $1,86.
MATIC has had an exceptional performance over the past month, increasing its value by 270%, while over the past year the growth of this cryptocurrency has been over 8.000%.
Much of MATIC’s appreciation is being driven by the massive adoption of Polygon. Recently, the decentralized exchange protocol and DeFi aggregator, 1inch, announced that it would be expanding to Polygon, following a massive request from its crypto community, to improve liquidity and yield options for its users, which caused a positive impact on the value of the token.
Cardano (ADA) is the second altcoin in the Top 20 with the highest returns this week. As data from CoinMarketCap shows, ADA has appreciated by more than 50% in the last month, while its performance over the last year exceeds 4.400%. At the time of writing, ADA is trading on the crypto market with a value of $2,27, although its historical maximum exceeds 2,4 dollars per unit.
Stellar (XLM), Solana (SOL), and Polkadot (DOT) continue to make the cut, with weekly returns exceeding 20%, 10%, and 9%, respectively. DOT and SOL also hit new all-time highs recently, with values of $49,4 y $51,64respectively.
Bitcoin, Ethereum and the alternatives
As reported by Bit2Me News, “Altseason” This is the trend that is dominating the crypto market at present, with 92% of alternative cryptocurrencies achieving higher returns than Bitcoin in the last 3 months.
Blockchain center, a digital platform that precisely analyzes the behavior of Bitcoin against the Top 50 cryptocurrencies, shows that we are in the first altcoin season of 2021, with MATIC dominating the trend.
In addition to this, high commission fees on Ethereum are also driving the growth of altcoins. Polygon and Solana offer highly scalable alternatives, ensuring fast transactions at very low costs; while block chains Cardano and Polkadot offer options to Ethereum for application and protocol development.
Despite the current bear market for Bitcoin and Ethereum, analysts believe that crypto investors should keep their investment portfolios diversified, keeping a small portion of their capital in these cryptocurrencies.
Anthony Scaramucci, SkyBridge Capital founder and investment expert, believes that between 1% and 3% in BTC is a good option to diversify crypto investments. The investor does not recommend a 100% Bitcoin portfolio, although his future outlook is still in favor of the exponential growth of BTC, as a potential asset for the store of value.
Miners and the crypto community are taking multiple initiatives to improve the Bitcoin network and make it sustainable over time. Jack Dorsey, CEO of Twitter, and Square and Amrita Ahuja, Square's chief financial officer, reaffirmed their commitment to the development and sustainability of Bitcoin, which continues on its path to becoming a green blockchain network, powered by clean and sustainable energy.
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