Crypto market update: 2nd week July 2020

Historically, when BTC prices lose volatility, the altcoins have the option to increase their prices, and this is really what is happening during the last weeks, and even since last May's halving.

Despite the weakness shown by BTC prices, but its support level is showing certain strength and stability. This fact is giving the opportunity to many altcoins to have an excellent performance such as Compound (COMP), Tezos (XTZ) and even stablecoins such as Dollar Coin (USDC) or Tether (USDT) which recently reached the top of the CoinMarketCap ranking.

 

                                                    Source: coin360.com
 

As you can see in the table provided by coin360.com, the boxes are proportional in size to the capitalization achieved by each crypto, the pink boxes correspond to decreases in the last day and the green ones mean increases, this image works like a puzzle where information about the type of algorithm is given when mining or generating transactions in a particular cryptocurrency. The BTC appears together with the Bitcoin Cash (BCH) and BSV because these cryptos come from the Bitcoin source code and therefore use the same algorithm. In the upper right corner are placed the Etherium-based tokens headed by the altcoin LINK, in this section of the puzzle are placed thousands of tokens based on this protocol.

It can be seen that the green boxes are more in the altcoins such as Tron (TRX), Cardano (ADA), Tether (USDT), Ripple (XRP), Stellar (XLM) and a long etcetera.

As we said before despite the weakness shown by the bitcoin price, it has a good support and it is also performing above the moving averages of the last 200 days, which indicates a bullish signal, and according to the analysts this trend will come sooner than expected. Right now resistance is set at $9,400 and support remains stable at 9,000. It seems unlikely that bearish traders will take control of the BTC price and that is why it is said that there is a very strong support line.

Overall, the upward trend in crypto market capitalization remains stable and is approaching a new high. Given the relative weakness of the bitcoins, this shows that the altcoins are playing an important role in this capitalization increase that is taking place in the crypto market.

“Despite the weakness shown by the bitcoin price, it has a good support and it is also performing above the moving averages of the last 200 days, which indicates a bullish signal.”

These movements can be extended until last August and in the meantime the altcoins can enjoy this prominence and have good performances taking into account that they are attracting new capital thanks to their attractive projects both new criptos (such as COMP) and classic ones (such as XLM or TRX).

The altcoins that have had the best increase in the last week are, in order of importance, the following: ATOM, XLM, VET, ALGO, LINK, ADA, BSV, ETC, XRP and CRO. They are the so-called TOP 1 0 gainers in last weeks.

                                      Source: Cointelegraph y coin360

Among the reasons why some of these altcoins have behaved so well may be:

  • Because of Coinbase's announcement to integrate some of them into its Exchange, such as VeChain (VET) and Cardano (ADA).
  • Because of the good behaviour of ETH as a cryptocurency and also because many of them are based on this protocol. Traditionally, a good performance of ETH is accompanied by increases in the prices of related altcoins. As a result, ETH prices have risen 270% in the last 4 months, climbing from 90 dollars to 240 dollars and overtaking the Bitcoin Cash price for the first time since December 2018.
  • And another reason why may be because most of the crypto considered have completed their network key upgrades seeking greater decentralization as a basis for their prosperity and proper functioning, this is the case of Cardano (ADA) whose latest upgrade has multiplied by 100 times its decentralization comparing to its competitors.

The altcoins and their protocols that work under DeFi (Decentralized Finance) ecosystem are having a good behavior and a great performance recording great gains respecting the dollar, as examples we can name new altcoins such as Compound (COMP) and Cosmos as significant cases.

In future articles, we will talk about the DeFi ecosystem because of its relevance and usability, since so far this year it has experienced a 300% growth from 700 million dollars to more than 2 billion. This platform uses mainly the ETH blockchain, although it can also use others and allows the management of unsecured loans without any intermediary.

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