Triple-digit gains make Dogecoin and Ethereum Classic the top performers of Q2

Triple-digit gains make Dogecoin and Ethereum Classic the top performers of Q2

In early 2021 Bitcoin and Ether price was the center of attention as each asset seemed to hit a new all-time high every 24-hours and traders called for $100,000 BTC and $5,000 ETH. Fast forward to the present and both assets are still more than 40% down from their all-time highs and the bulls calling for unbelievable price targets are nowhere to be found.    

A recent report from CoinMetrics reviewed the performance of Bitcoin and altcoins during Q2 2021 and the analysts found that even with the sharp May 19 market correction many assets finished the quarter in the green with Dogecoin (DOGE) coming out on top with a  392% gain.

Our top trading bots

Triple-digit gains make Dogecoin and Ethereum Classic the top performers of Q2
Q2 2021 returns for the top 25 crypto assets. Source: CoinMetrics

Ethereum Classic (ETC) and Polygon (MATIC) were the other two breakaway stars of Q2, with each gaining 297% and 227% respectively despite a nearly 39% decline in the price of Bitcoin.

Ethereum network shows strength

One of the biggest developments during Q2 was the Ether price breakout from $1,971 on April 1 to a new record high of $4,362 on May 11 before the market-wide sell-off resulted in a quarterly close at $2,240, which represents a 13.2% gain.

CoinMetrics highlighted that Ether price “benefited from a renewed surge of retail interest which was partially driven by the rapid rise of NFTs.”

Triple-digit gains make Dogecoin and Ethereum Classic the top performers of Q2
Number of Ethereum addresses holding at least 0.1 Ether. Source: CoinMetrics

As a result of the retail surge, the number of addresses holding at least 0.1 Ether increased from 4.58 million to more than 5.20 million.

Ether’s positive finish, when compared to the significant decline in Bitcoin, is also indicative of the increased attention the top-ranked altcoin is receiving from institutional investors looking to diversify away from BTC.

Altcoin gains triggered a decline in Bitcoin Dominance

As mentioned earlier, the best performance in Q2 came from DOGE, which managed to finish the quarter up 392% despite a 66% decline from its $0.74 all-time high set back on May 8.

Triple-digit gains make Dogecoin and Ethereum Classic the top performers of Q2
Number of Dogecoin addresses holding at least 1 DOGE. Source: CoinMetrics

According to the report, the number of addresses holding at least 1 DOGE increased from 3.09 million on April 1 to 3.7 million addresses on June 30. DOGE addresses continued to increase in the month of June while new Ether addresses essentially flatlined at the end of May.

As a result of the gains made by altcoins, Bitcoin dominance fell to 45% on June 30, its lowest level since July 2018.

Triple-digit gains make Dogecoin and Ethereum Classic the top performers of Q2
Bitcoin dominance. Source: CoinMetrics

CoinMetrics pointed out that the significant headwinds BTC faced were partially a result of China’s crackdown on cryptocurrency mining, which resulted in a 50% decline in hash rate in Q2 to its lowest level since late 2019.

Related: Bitcoin mining ban an easy decision for China, says Bitmain EMEA partner

This decline is likely temporary and the hash rate “should eventually recover once miners start to power back up in their new locations,” but CoinMetrics warned that this “won’t happen overnight since it will take time to build and set up enough facilities to accommodate the sudden influx of new demand.”

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

CoinMetrics said:

“Over the long-term this mass migration should be largely beneficial as it will help Bitcoin hash rate get further distributed around the world, and remove the previous concentration in China. It could also help improve Bitcoin’s environmental impact since miners in some regions of China relied on coal.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Continue reading on Cointelegraph
How crypto can modernize the world of lending
Lending has been around in some form for thousands of years — dating back to ancient civilizations where farmers would borrow seeds and use crops as repayment.The...
SEC Chairman says cryptocurrency falls under security-based swaps rules
The Securities and Exchange Commission, or SEC, may soon issue new rules for the regulation and registration of security-based swaps, including cryptocurrency.In...
Former pro sailer brokers tax-haven passports for wealthy crypto clients
A Russian expatriate and former professional sailboat racer, Katie Ananina, Plan B Passport — a firm that brokers citizenship through investment schemes...
Bulls and bears fight over $34K Bitcoin price as $445M options expiry looms
Bitcoin (BTC) has been ranging from $30,400 to 36,400 for the last 12 days, and it has been difficult to pinpoint the exact reason for investors’ lack of...
No, Bitcoin is not ‘technobabble’
Many years ago, I ran hedge funds on Wall Street. With a long pause for philanthropic and government work, I eventually found my way to blockchain, and...
US Congressman expresses importance of crypto wallet privacy
At the bustling Bitcoin 2021 conference in Miami, Congressman Warren Davidson, alongside United States Senator Cynthia Lummis, sat down to field interview...
Bitcoin price D-Day starts ‘any moment,’ says trader, as BTC reclaims key level
Bitcoin (BTC) is nearing the end of a consolidation period, which traders are betting will spark a fresh bullish breakout.In a tweet on Tuesday, popular...
Bitcoin’s upcoming Taproot upgrade and why it matters for the network
While a vast majority of crypto enthusiasts around the globe seem to be gushing about Ether (ETH) at the moment and how its upcoming London hard fork stands...
Litecoin Climbs 11% In a Green Day
Investing.com - Litecoin was trading at $264.228 by 02:24 (06:24 GMT) on the Investing.com Index on Wednesday, up 11.07% on the day. It was the largest...
Bitcoin to zero? Not while this Redditor has $187,000 to spend
In the years since Bitcoin’s 2009 launch, the crypto industry’s inaugural blockchain-based asset has survived many speculative deaths. While it is true...
Finance Redefined: The slow march forward, March 24–31
Finance Redefined is Cointelegraph's DeFi-centric newsletter contextualizing major events in the previous week. Subscribers receive a copy every Wednesday.Editor's...
No More Mobile Operators & Data Interceptions — Blockchain Phone Presented
The future is happening —PundiX, an international startup, has developed a novel smartphone which facilitates decentralized calls. The device is based on...
Russian Railways To Make Trips Cheaper Thanks To DLT, Cryptos
Russian Railways intends to implement a range of technological advancements, related to blockchain and cryptos. In particular, the RZD company is going...
The Philippines To Allow 10 Crypto-Companies Enter Economic Zone
The Philippines seem to be reluctant to stay aside when it comes to crypto-regulation. Almost half a year ago the country’s SEC commissioner stated the...
Bitcoin Plunges to $12,800 As South Korea Schemes Trading Taboo
South Korean authorities keep curbing bitcoin trading. After banning the registration of novel virtual account services for crypto exchanges and demanding...