After one of the most brutal weekends, Bitcoin and most altcoins are showing signs of recovery in shorter periods of time. While most of the 7-day and 30-day charts are still down 30% and 40%, the general sentiment in the market seems to be more bullish as investors see their charts change from red to green.
Ethereum was likely one of the fastest altcoins to return from a critical support zone at $ 1,700. The second cryptocurrency by market capitalization is trading at $ 2,541 with a gain of 2.6% on the daily chart and a gain of 35.6% on the monthly chart.
Ethereum will go through an update of its fee model with the hard fork “London”. EIP-1559 is implemented and ETH becomes a deflationary asset. This has strengthened the theory among some users that ETH could become a more effective store of value than Bitcoin.
In the weeks leading up to the crash, Ethereum was the only altcoin to attract institutional interest in BTC-based investment products. While Bitcoin investment products were estimated to have outflows at an estimated $ 98 million in mid-May, Ethereum recorded inflows of $ 27 million.
For the first time, the second cryptocurrency by market capitalization became more interested in this metric by the institutions. The CoinShares report states: “Investors have diversified from Bitcoin to Altcoin investment products.” As shown in the following chart, the negative price development in the crypto market over the past week had an impact on asset flows.
Altcoins with great potential after Bitcoin crash
Alongside Ethereum, Polygon (MATIC) rallied the fastest with a 110% gain on the daily chart and an 81.4% increase against its Bitcoin pair. The project has received more investor attention since it was renamed and has risen to become Total Value Locked (TVL) top 4 projects, according to DeFi Pulse.
As reported by newsBTC, Polygon has been running hot since March 2021 when this blockchain outperformed Binance Smart Chain (BSC), Avalanche, NEAT and other Ethereum L1 bridges. With over 100 projects based on its solution, Polygon (MATIC) has great potential for further appreciation.
Polkadot (DOT), Solana (SOL), Cardano (ADA) and Binance Coin (BNB) showed great resilience during the crash and appear to be poised for further gains in the months to come. BNB and the Binance Smart Chain ecosystem have proven that users are ready to join low-cost DeFi ecosystems with fast transactions.
Solana and projects like Terra (LUNA) and COPE meet this demand. Cardano will launch its Plutus intelligent contract platform and its ability to attract more users, developers and projects will be critical to its immediate future.
Dog them meme coins were a “thing” at this stage of the bull run. According to research firm Messari, Dogecoin (DOGE) was the least affected during the crash. The Elon Musk Effect favors this particular coin and will most likely continue to be a major factor in the crypto market and its recovery.
Market cap performance hovered around 0 earlier in the week as it turned into a bloodbath mid-week
All top assets posted double-digit losses, with two least affected:
+ Cardano $ ADA, -13%
+ Dogecoin $ DOGE, -26% pic.twitter.com/yiU6tNzbdY
– Messari (@MessariCrypto) May 21, 2021