Bitcoin has been struggling for the last month and has struggled to hold the $20,000, losing its footing multiple times. Through this time, altcoins, while having followed the digital asset on the way down, had begun to gather momentum through the small recoveries recorded over the last couple of weeks. As July draws in on its first weekly close, performance across the market has shown that bitcoin is getting left behind.
Altcoins Take The Lead
The altcoins had been the worst losers of the downtrend. Although all of the indexes including bitcoin had seen losses into the double-digits, the small cap altcoins especially had recorded more losses. However, now that the market is headed into what looks like a recovery stretch, the smaller altcoins have pushed their heads forward to claim the majority of the gains.
Related Reading | Active Ethereum Addresses Touch 2020 Levels, Will Price Follow?
The Small Cap Index has seen gains up to 4.9% barely a week into the month of July/. This recovery is replicated across the Mid Cap Index which, surprisingly, had returned the highest gains for the time period. With 5.0%, the Mid Cap Index comes out ahead of all of its counterparts.
As for the Large Cap Index, it was not left out of the recovery trend with 3.1% in gains recorded so far. These coins had followed the rally of bitcoin the closest and as such, had been the closest to it in terms of the gains that have been seen so far.
BTC returns worse performance against altcoins | Source: Arcane Research
Bitcoin Suffers A Worse Fate
Bitcoin, although the market leader, has returned the least gains out of all of the indexes. The digital asset had provided a somewhat safe haven when the market was crashing back in June but altcoins are getting all of the gains as the market begins to stabilize.
Bitcoin’s gains so far for the month of July have come out to 0.5%, the lowest of all of them. This has been quickly followed by a decline in market dominance given the performances of the other indexes. However, the decline has been quite small with only a -0.10% recorded change for the last week.
BTC failed to break $20,500 resistance | Source: BTCUSD on TradingView.com
This sharp recovery in altcoins in comparison to bitcoin shows that faith is recovering towards lower cap altcoins. These altcoins which carry more potential for higher returns are highly favored by investors chasing a 100x or similar.
Related Reading | Celsius Beats Down Liquidation Price With $120 Million In Loan Repayments
As for the stable cons, they continue to maintain their dominance and have in fact seen good growth in this time. Top stablecoins USDT, USDC, and BUSD recorded 0.23%, 0.18%, and 0.08% increases respectively. in their market share. BNB also followed this trend with a 0.06% increase but all other large cap coins saw declines with Ethereum losing 0.22% of its market share.
Featured image from Binance, charts from Arcane Research and TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…