Dogecoin and Ethereum Classic are the stars of the second quarter with three-digit profits

In early 2021, bitcoin and ether were the focus of attention as they seemed to hit new all-time highs (ATHs) every 24 hours, prompting traders to set targets of $ 100,000 for bitcoin and bitcoin, $ 5,000 for ether.

To date, both Bitcoin and Ether are down over 40% from their ATHs. Investors who set a goal of $ 100,000 for Bitcoin and $ 5,000 for Ether can no longer find their goal.

A recent report by CoinMetrics examined the performance of Bitcoin and Altcoins in the 2nd quarter of 2021. Analysts found that many Altcoins ended the 2nd quarter with impressive numbers, even though the market corrected sharply on May 19, including Dogecoin (DOGE) a profit of 392%.

Q2 2021 report for the 25 largest crypto assets | Source: CoinMetrics

Ethereum Classic (ETC) and Polygon (MATIC) were the other two stars of the second quarter, with gains of 297% and 227% respectively, despite Bitcoin price falling nearly 39%.

Ethereum network shows strength

One of the biggest developments in the second quarter was the breakout in Ether price from $ 1,971 on April 1 to a new record high of $ 4,362 on May 11, before a market-wide sell-off led to the closing price at $ 2,240, which corresponds to an increase of 13.2%.

CoinMetrics emphasized that Ether price “is benefiting from a surge in retail investors driven in part by the rapid rise in NFTs.”

Number of addresses with at least 0.1 ethers | Source: CoinMetrics

Due to an increase in private investors, the number of addresses with at least 0.1 ether rose from 4.58 million to over 5.2 million.

The end of Ether is said to remain positive compared to Bitcoin’s sharp decline, which is also a sign of the increasing attention Ether is getting from institutional investors looking for ways to diversify their investments beyond Bitcoin.

Profits from altcoins led to a decline in Bitcoin dominance

As previously mentioned, the best performance in the second quarter came from DOGE, which ended the quarter up 392% despite a 66% decline versus ATH to $ 0.74 on May 8th.

Number of addresses with at least 1 DOGE | Source: CoinMetrics

According to the report, the number of addresses with at least 1 DOGE rose from 3.09 million on April 1 to 3.7 million on June 30. DOGE addresses continued to surge in June when the new Ether addresses were essentially flat in late May.

Due to the profits generated by altcoins, Bitcoin’s dominance dropped to 45% on June 30, its lowest level since July 2018.

Bitcoin dominance | Source: CoinMetrics

CoinMetrics has indicated that the significant difficulties Bitcoin is facing are in part a consequence of the crypto-mining practice in China that caused the hash rate to drop in World War II.

This decline is likely to be temporary and the hash rate “will eventually recover once the miners get power back in their new locations,” but CoinMetrics warns that this will “not happen overnight” as it takes time to to build up and establish a sufficient basis to meet the new demand. “

Overall, CoinMetrics and other analysts see this as a positive long-term development for the Bitcoin ecosystem.

“In the long run, this mass exodus will be of great benefit as it will help to further spread the Bitcoin hash rate around the world and eliminate the previous centralization in China. It can also help improve Bitcoin’s environmental impact as miners rely on coal as an energy source in some parts of China. “

Teacher

According to Cointelegraph

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