Alternative cryptocurrencies or altcoins have started to make huge profits across the board. Some small-cap currencies have seen three-digit percentage gains in the past few weeks. However, some larger-cap cryptocurrencies have also made significant gains, such as VeChain (VET), Stellar (XLM), Cardano (ADA), and Chainlink (LINK).
Market performance of cryptocurrencies in the past 7 days. Source: Coin360
The top ten in the cryptocurrency market in the past week
Last week, VET, XLM, ADA, ALGO, LINK, BSV, ATOM, XRP, CRO and ETC outperformed the rest of the market, including Bitcoin, which only grew 1.13% over the period.
The graph below shows the biggest winners of the past seven days for cryptocurrencies with a market cap of $ 700 million or more.
Top 10 crypto assets in the past week. Source: Cointelegraph, Coin360
Since March, both Bitcoin (BTC) and Ether (ETH) have seen growth of over 150%, which is reported to be due to an increase in retail demand and institutes. After the strong recovery of the two main crypto assets, the dynamics of many alternative currencies began to pick up, especially after the halving of Bitcoin in mid-May.
Vocational training was ranked the third best crypto asset of the week. Some speculate that the VeChain team’s participation in a major conference could indicate a product announcement. Others believe that the rebound is based on the expectation of a possible coinbase listing.
On June 11, Coinbase announced that VeChain was being verified along with 19 other cryptocurrencies. When VeChain was mentioned, the exchange said:
“Today we are announcing that we are reviewing the addition of a number of new assets. As part of the exploration process, customers may see public APIs and other indications that we are undertaking technical work to support these assets.”
Stellar and Cardano are undergoing major protocol updates, and Cardano’s tough fork is scheduled to be activated on July 30th. The hype surrounding protocol updates and new product launches has fueled the mood about top cryptocurrencies in recent weeks.
Other crypto assets, such as Chainlink, for example, recently passed its historic highs after a strong month in June. Interest in LINK increased after entering the pricing phase. Pricing is a technical term when an asset exceeds its historical high in an unknown area.
Meanwhile, Dogecoin, fueled by growing interest from TikTok users, was the cryptocurrency with the best performance among currencies with a market cap of less than $ 700 million. It peaked after two years and prompted the @Dogecoin Twitter account to warn users and “be smart” when it comes to missing the trend (FOMO).
Why do old coins seem to be in a positive mood?
Overall, the increasing sentiment among altcoins appears to be due to two factors. First, ETH has developed strongly against the US dollar. Historically, the ETH rallies coincided with the upward trend in altcoins. In the past four months, the price of ETH rose by almost 270% from USD 90 to USD 241.
Second, most major cryptocurrencies have completed the first phase of major network updates. Cardano, for example, is well on the way to completing the Shelley update by the end of July. The Shelley update could decentralize Cardano’s blockchain network by a factor of 100 than competing blockchains, the foundation said.
“At the end of the Shelley era, we expect Cardano to be 50 to 100 times more decentralized than other large blockchain networks. The incentive system is designed to strike a balance between around 1,000 pools of operations.”
The improved sentiment regarding the top 20 cryptocurrencies that was initially fueled by upcoming blockchain updates could have triggered an altcoin bull run.
DeFi and cryptocurrencies related to the use have also developed strongly since the beginning of July. For example, Cosmos, Kyber Network and Compound saw enormous gains of more than 20% against the US dollar.