On May 19, the market capitalization of the entire cryptocurrency plunged 19% and has not risen to the $ 1.8 trillion mark since then. It has been more than 40 days and traders are wondering what can happen to altcoins if the current bear market recovers longer than expected.
Before the analysts get into that, they first want to know whether or not certain sectors have outperformed most of the others, and most importantly, they need to distinguish which cryptocurrencies have managed to stay afloat for 30 days so far.
Although total crypto market cap is down 5% in 30 days, nearly 44 of the 100 highest cash holdings have declined 19% or more over that period. Knowing this is a strong indicator that traders have reduced the losses on some altcoins.
The worst performers checklist reveals an impressive variety of tokens from sensible contract platforms. In reality, five of the top six fall into this class. A significant side could be the sharp drop in gasoline fees for the Ethereum community, resulting in lower demand for various options.
Another example that has emerged is the artificial property class represented by Synthetix Community Token (SNX), UMA, and Perpetual Protocol’s PERP token. Traders can sense potential problems because not so long ago the World Financial Discussion Board introduced numerous cover instruments for decentralized monetary regulation. As well as Dan Berkovitz, Commissioner of the US Commodity Futures Buy and Sell Fee, DeFi for most likely illegal.
In contrast, the checklist of outliers from the previous month is significantly shorter. Only 12 of the top 100 were able to present themselves positively.
This time it is difficult to discover a common development among the many top performers. Every AMP token from Flexa and QNT from Quant were listed on Coinbase Professional not so long ago. In the meantime, Theta is expected to launch its 3.zero mainnet on June 30th. Finally, Solana Labs, which is behind the favorite SOL token, raised $ 314 million through a personal token sale.
Some conclusions can then be drawn from the evaluation. The truth that only 12 tokens performed functions in the last 30 days shows that diversifying into altcoins would not have paid off. Meanwhile, bets on “Ethereum killers” brought greater losses because the bear market itself managed to cover excessive fuel charges.
In any case, the regulatory uncertainty related to DeFi will realistically not resolve itself within the next 30 days. It is worth bearing in mind that the improvement in the Ethereum community in July and the impact of El Salvador’s decision to make Bitcoin (BTC) official foreign money are more likely to appeal to investor considerations and steer cash to BTC and Ether (ETH) becomes.
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