Triple-digit gains make Dogecoin and Ethereum Classic the top performers of Q2
A second quarter of 2017 could be a disappointment in the cryptocurrency world. More specifically, most altcoins have tanked, and Dogecoin (DOGE) and Ethereum Classic (ETC) are the biggest exceptions. Over the past month, DOGE and ETC have seen a massive surge in value, with both coins hitting new all-time highs. In fact, the rise of both currencies has been so impressive that they’ve been named the top performers of Q2. Let’s take a closer look at the performance of DOGE and ETC over the past month.
What a crazy first six months for digital currencies. We saw Bitcoin surge to $19,000 and ETH jump to $1,000. No one was prepared for the sheer speed at which these meteoric gains would occur. In just six months, Bitcoin has risen by more than 60%. That’s huge! In Q2 we saw Dogecoin and Ethereum Classic become the top performers.
In early 2021, the price of Bitcoin and Ether were in the spotlight, with each asset seeming to reach a new all-time high every 24 hours, with traders calling for BTC to reach $100,000 and ETH to reach $5,000. Right now, both stocks are still more than 40% below their all-time highs, and nowhere do we see the bulls calling for incredible price targets.
A recent report from CoinMetrics looks at the performance of bitcoin and altcoins for the second quarter of 2021, and the analysts found that even after a sharp market correction on the 19th, bitcoin still performed well. In May, many assets ended the quarter in surplus, with Dogecoin (DOGE) leading the way with a 392% gain.
Q2 2021 returns for the top 25 crypto assets. Source: CoinMetrics
Ethereum Classic (ETC) and Polygon (MATIC) were the other two stars of the second quarter, rising 297% and 227%, respectively, despite a nearly 39% drop in the bitcoin price.
Ethereumnetwork demonstrates the power of
One of the key developments in the second quarter was the break in the price of ether from $1,971 in the first quarter. April to a new high of $4,362 on May 11, followed by a market sell-off that resulted in a quarterly close of $2,240, up 13.2%.
CoinMetrics pointed out that the price of Ether has enjoyed an uptick in interest from retailers, particularly due to a rapid rise in the NFT.
Number of Ethereum addresses with at least 0.1 Ether. Source: CoinMetrics
With the increase in the number of exchanges, the number of addresses with at least 0.1 Ether increased from 4.58 million to more than 5.20 million.
Ether’s positive performance versus Bitcoin’s significant decline also points to the increased focus on altcoin by institutional investors looking to diversify their funds away from BTC.
Rise of altcoins leads to decline of bitcoin dominance
As noted above, the best performer in the second quarter was DOGE, which ended the quarter up 392% despite a 66% decline from its all-time high of $0.74 on the 8th. May.
Number of Dogecoin addresses with at least 1 DOGE. Source: CoinMetrics
According to the latter, the number of addresses with at least 1 DOGE increased from 3.09 million addresses on January 1, 2007 to 3.7 million addresses on January 2, 2007. June. The number of DOGE addresses continued to grow in June, while the number of new Ether addresses remained virtually unchanged at the end of May.
With the growth of altcoins, bitcoin’s dominance fell to 45% on June 30, its lowest level since July 2018.
CoinMetrics noted that the significant hurdles BTC has faced are partly due to China’s restrictions on cryptocurrency mining, which led to a 50% drop in hashrate in the second quarter to its lowest level since late 2019.
Related: Banning bitcoin mining is a simple solution for China, says Bitmains EMEA partner
This slowdown is likely temporary and hash rates should eventually recover as miners begin working again on their new sites, but CoinMetrics warns that this will not happen overnight as it will take time to build and deploy enough capacity to meet the sudden influx of new demand.
Overall, CoinMetrics and other analysts see this development as a positive long-term effect for the bitcoin ecosystem.
In the long run, this mass migration will be beneficial, as it will spread the bitcoin hash rate even further around the world and remove the previous concentration in China. It could also help make bitcoin more environmentally friendly, as miners in some parts of China are powered by coal.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. So you need to do your own research before making a decision.
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