The altcoin season is back apparently as most altcoins like IOTA, EOS, and Bitcoin SV surged by over 20% as we can see in today’s altcoin news below.
Over the past three days, both BTC and ETH entered a new holding pattern which means for BTC, there was consolidation between $39K and $42K while for ETH it meant consolidation between $1100 and $1250. Some believe that this consolidation shows is an impending market top but altcoins started breaking higher as both of the top two cycled their gains into other segments of the crypto market.
Earlier this week, the altcoins were rallying but most of them were all DEFI-related. The focus however shifted today to 2017-era altcoins like IOTA and EOS. The best performing cryptocurrencies are all altcoins that did well back in the previous bull market in 2016 and in early 2018 which seem like the altcoin season is back.
The biggest failing of the cycle so far is the fact that ghost chains are still listed and more readily available for normies entering via fiat on-ramps than high-quality blue chips.
— Freddie Farmer (@FreddieFarmer) January 9, 2021
ZRX which is the native token of 0x, the decentralized exchange protocol, increased by 25% over the past day, adding 40 percent gains from the week. The cryptocurrency is benefiting from other developments around and the increased usage of Matcha, a decentralized exchange aggregator that was in fact built by the 0x team. IOTA, Bitcoin Gold, MakerDAO’s MKR, Zcash, and Tron are among the crypto assets that made 15-20 percent gains in one day. It’s worth noting that these coins had underperformed DeFi coins as well as BTC and ETH over the summer which usually suggests that the recent price action is just a reversion.
Not all tokens surging today are 2017-era altcoins. Avalanche for example surged by 42 percent in the past day as this new blockchain started launching new applications that make it a competitor or an alternative to ETH. The thing that underlines this rally is the fact that many of the coins that are moving higher have no-real world adoption yet. Freddie Farmer, the former head of DeFi at Wintermute Trading said:
“The biggest failing of the cycle so far is the fact that ghost chains are still listed and more readily available for normies entering via fiat on-ramps than high-quality blue chips.”
Even today, after Defi saw some incredible influx of capital and users, a huge majority of the Defi projects trade outside of the top 50 cryptocurrencies by market cap. Analysts expect that this will shift over time as investors focus more on cryptocurrencies with a fundamental purpose.
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