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With 400% increase, Dogecoin led a red quarter for cryptocurrencies

Key facts:

Only 8 out of 25 cryptocurrencies had a second green quarter.

Along with DOGE, two other coins were up more than 200%.

The second quarter of this year 2021 was marked by the color red in the cryptocurrency market, with bitcoin (BTC) falling close to 40% in that period. However, not all are regrets for the market, particularly for the cryptocurrency meme dogecoin (DOGE).

During the past three months, DOGE appreciated about 400%, despite the general decline in May, from which practically no cryptocurrency was spared. With that performance, DOGE was the most prominent currency of the quarter – at least among the large market capitalization ones -, as the firm Coin Metrics shows in its most recent report.

Published this Tuesday, July 13, the report refers to the influence that billionaire Elon Musk had in the emergence of DOGE. With periodic tweets referring to the coin, Musk was the big price and media notoriety driver for dogecoin.

The percentage increase of the cryptocurrency stands out even more, if we take into account that at the end of June its market value it was less than half of the all-time high set in the first week of May, close to $ 0.7 per unit, according to data from CoinMarketCap.

Dogecoin started last quarter below $ 0.06. Source: CoinMarketCap.

In addition to the price driven by the Tesla founder, dogecoin also had a representative growth of investors, as reflected by increasing addresses with at least one coin.

This rapid growth is also reflected in the chain. The number of addresses with at least 1 DOGE increased from 3.09 million on April 1 to more than 3.7 million on June 30.

Coin Metrics.

Addresses with at least 1 DOGE reached an all-time high in recent months. Source: coinmetrics

Other featured cryptocurrencies

The study reflects the cryptocurrency of the shiba inu dog with a much higher increase in percentage terms, despite the fact that there are another pair of cryptocurrencies with good performance in the exposed period: Ethereum Classic (ETC) and Polygon (MATIC).

Both cryptocurrencies had increases of more than 200%, being the only ones with DOGE that increased more than 100% in a list of 25 coins presented by the Coin Metrics study.

The researchers highlight that the quarter was quite favorable for cryptocurrencies associated with the Ethereum network or even its competitors in the race of blockchains focused on the development of underlying projects, such as cardano (ADA) and solana (SOL).

Ethereum’s own native cryptocurrency (ETH) closed in the green last quarter, albeit with a more discreet 13% appreciation.

Total, only 8 of those 25 cryptocurrencies closed with positive performance, if we add Ripple’s XRP and MakerDAO’s governance token, MKR (23% and 14%, respectively).

Bloody quarter, with bitcoin to the tip

Outside of the aforementioned cryptocurrencies, the vast majority of the list was in the red. Starting with BTC, whose peak above $ 64,000 in mid-April seems a long way off.

After starting around $ 60,000 per unit, the main cryptocurrency on the market closed the quarter struggling to stay above $ 30,000, closing that period with a drop close to 40%.

Other cryptocurrencies suffered even worse luck in those three months, with depreciations of up to 85%, as was the case with Internet Computer (ICP). After having even placed in the top 5 according to market capitalization in mid-May, as reported by CriptoNoticias, the cryptocurrency currently ranks 21st.

Most of the top cryptocurrencies closed in the red in the second quarter of this year. Source: Coin Metrics

Fall in bitcoin dominance and golden moment for altcoins

The Coin Metrics report highlights the decline in dominance that bitcoin has experienced in recent months. “Overall, smaller-cap assets hit new peaks in May. As a result, Bitcoin’s dominance fell to its lowest levels since July 2018, ″ the analysts note.

Before that drop in the percentage of the total value of the cryptocurrency market that corresponds to BTC, already the altcoins were surpassing the currency created by Satoshi Nakamoto.

Even with bitcoin breaking its all-time highs, between March and June of this year the market experienced what is known as an altcoin season, a time when most of the top 50 outperform BTC over a 90-day period.

Up-to-date data from the altcoin seasonal index, developed by blockchaincenter.net, shows that time has come to an end. Despite BTC failing to pick up levels from previous months, altcoins are performing worse.

Bullish future for bitcoin?

There are well-known market analysts in the bitcoin environment who they expect the cryptocurrency to resume the bullish movement, and even exceed $ 100,000 this year.

One of the main obstacles that has stood in the way of bitcoin to its recovery in the market has been the government of China. With the radicalization of its policies against miners, the Asian country has generated a historic drop in the processing power accumulated in the network, which in turn had an impact on the price.

With the expectation that a large part of the mining machines migrate to other latitudes -In part, that process has already begun according to various reports- there could be a rebound not only in the hash rate but also in the price of BTC in the near future.

However, so far this July the outlook does not look so positive. Bitcoin remains around $ 32,000, after having opened the month above $ 34,000.

Although the fall is not so significant in percentage terms, it is a sign that BTC has encountered stiff resistance to break the range between $ 32,000 and $ 38,000 in which it has remained in recent weeks.

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