After one of its harshest weekend, Bitcoin and most altcoins are showing signs of recovery in a shorter time frame. While most of them still fell 30% and 40% on the 7-day and 30-day charts, the overall market sentiment seems more optimistic as investors see their charts change from red to green.
Ethereum was probably one of the fastest altcoins to come back from the critical support zone at $ 1,700. The second cryptocurrency by market cap is trading at $ 2,541 with a 2.6% gain on the daily chart and a 35.6% gain on the monthly chart.
ETH with bullish momentum on the daily chart. Source: ETHUSD Tradingview
Ethereum will undergo an update to its commission model with the London hard fork. EIP-1559 will be implemented and ETH will become a deflationary asset. This strengthened the theory of some users that ETH could be a more efficient store of value than Bitcoin.
In the weeks before the crash, Ethereum was the only altcoin to absorb institutional interest from BTC-based investment products. In mid-May, while the outflow of Bitcoin investment products was estimated at $ 98 million, Ethereum had an inflow of $ 27 million.
For the first time, the second-largest cryptocurrency by market capitalization has generated more interest from institutions on this indicator. The CoinShares report says: "Investors are diversifying from bitcoin to altcoin investment products." As you can see from the chart below, negative price movements in the cryptocurrency market have impacted asset flows in the past week.
ALTCOINS WITH GREAT POTENTIAL AFTER BITCOIN CRASH
Apart from Ethereum, Polygon (MATIC) showed the fastest growth, with a daily profit of 110% and 81.4% compared to the bitcoin pair. According to DeFi Pulse, the project has attracted more investor attention after the rebranding and entered the top 4 projects in terms of Total Value Locked (TVL).
TVL Polygon grows over a 30-day period. Source: DeFi Pulse
As reported by newsBTC, Polygon has overclocked a lot since March 2021, when this blockchain surpassed Binance Smart Chain (BSC), Avalanche, NEAT and other Ethereum L1 bridges. With over 100 projects based on this solution, Polygon (MATIC) has great potential for further recognition.
Polkadot (DOT), Solana (SOL), Cardano (ADA), and Binance Coin (BNB) have shown more resilience during the crash and appear poised to see more earnings in the coming months. BNB and the Binance Smart Chain Ecosystem have proven that users are keen to participate in low-cost DeFi ecosystems with fast transactions.
Solana and projects such as Terra (LUNA) and COPE are meeting this demand. Cardano will launch Plutus smart contracts platform, and its ability to attract more users, developers and projects will be a key moment in its near future.
Chase them with coin memes during this stage of the bull run. Dogecoin (DOGE) was one of the least affected in the accident, according to research firm Messari. The Elon Musk effect favors this particular coin and is likely to continue to be a major factor in the cryptocurrency market and its recovery.
Market cap numbers hovered around 0 at the start of the week and turned into a bloodbath by midweek.
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