Crypto bulls are back, but are they more profitable than before?

On May 19, total crypto market capitalization fell 19% and has not risen to the $ 1.8 trillion mark since then. More than 40 days have passed and investors are wondering what could happen to altcoins if the current bear market recovers longer than expected.

Before digging deeper into this, analysts need to first understand whether certain sectors are performing better than most, and most importantly, what cryptocurrencies have managed to stay active over the past 30 days.

Total Crypto Market Cap (billion dollars) | Source: TradingView

Although the total crypto market cap is down 5% in 30 days, nearly 44 coins in the top 100 have fallen 19% or more over that period. This is a strong indicator that investors are reducing losses on multiple altcoins.

The worst performing coins in the top 100 over the last 30 days | Source: CoinMarketCap

The list of the worst performing coins shows an impressive number of tokens from smart contract platforms. In fact, five of the six biggest losers fall into this category. An important aspect could be the sharp drop in gas fees for the Ethereum network, reducing the need for alternatives.

Another model that has emerged is the synthetic asset portfolio, represented by the Synthetix Network Token (SNX), the UMA and PERP tokens of the Perpetual Protocol. Investors may have noticed potential problems when the World Economic Forum (WEF) recently released a decentralized fiscal policy (DeFi) toolkit. In addition, Dan Berkovitz, commissioner for the US Commodity Futures Trading Commission (CFTC) stated that DeFi could be illegal.

On the other hand, the list of exceptions is significantly smaller in the past month. Only 12 of the top 100 coins have a positive performance.

The 100 best performing coins from the last 30 days | Source: CoinMarketCap

This time around, it’s hard to find a general trend among the top coins. Both Flexa’s AMP token and Quant’s QNT were recently listed on Coinbase Pro. In the meantime, Theta is expected to release Mainnet 3.0 today (June 30th). Eventually, Solana Labs, the company behind the SOL token, raised $ 314 million through a private sale.

The conclusion that can be drawn from the analysis is that the fact that only 12 tokens have been profitable in the last 30 days suggests that altcoin diversification may not pay off. Meanwhile, bets on the “Ethereum killer” offer higher losses as the bear market itself manages to cap inflated gas fees.

After all, the regulatory uncertainty surrounding DeFi will actually not be resolved in the next 30 days. There is reason to believe that July’s upgrade of the Ethereum network and the aftermath of El Salvador’s decision to legalize Bitcoin are likely to draw the attention of investors and inflows into BTC and ETH.

Teacher

According to Cointelegraph

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