Due to high volatility, crypto investors were attempting to exit altcoins during the downtrend. This led to a more severe fall in altcoins than in bitcoin. These altcoins are now at the top, and investors rush to get back in.
Altcoins Offer More Profits
It has been proven that altcoins show the largest movements in any market. They are also more likely to lose large amounts than make money, so they can be a risky investment. It is exactly the same this time. Altcoins are being sought out by investors in order to reap the benefits.
Two weeks in to August and altcoins already have the advantage when it comes gains. Small Cap Index suffered greatly during the downtrend and is now enjoying a moment in the sunshine. The index saw the greatest gains over the past 10 days with a 9% increase.
In this respect, the Mid Cap Index is similar to its smaller counterpart. Although the gains were not as great as those of its smaller counterparts, the Mid Cap Index saw 7% increases over that time. The Large Cap Index also saw gains of 5% during the same period.
Small Cap Index experiences the greatest gains. Source: Arcane Research| Source: Arcane Research
Investors are starting to believe in the market again, as evidenced by these gains. Altcoin exposure is increasing rapidly and causing a spike in the prices of all these indexes.
Bitcoin is following a Positive Trend
Altcoins weren’t the only ones to see positive growth during the first week in August. Market sentiment has been positive and has had an effect on several digital assets in different ways.
While Bitcoin saw fewer gains than its altcoin rivals, the gains were still significant. The index had only 2.2% returns, making it the least profitable. The digital asset continues to perform poorly in comparison with altcoins despite this increase. The digital asset’s market dominance has declined by about 7% within the past 2 months.
Source: Crypto Total Market Cap on TradingView.com| Source: Crypto Total Market Cap on TradingView.com
It is clear that after the crash, investors have moved away from bitcoin’s safety net and are now looking at altcoins. Altcoins have also eroded the market power of stablecoins.
ETH dominance grew 0.89% over the week. Bitcoin and all the other major stablecoins lost from 0.12% up to 0.96%. The new desire to take on risk may either be rewarding or a sign that investors are losing their patience if the market retraces.
Featured image taken from Binance.
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