Dogecoin (DOGE), Ethereum Classic (ETC), and Polygon (MATIC) have become the Top Performers in Q2, 2021
In the first quarter of 2021, Bitcoin (BTC) and Ethereum (ETH) were the center of attention. However, in the second quarter, they have plummeted significantly. In fact, the altcoins such as Dogecoin (DOGE), Ethereum Classic (ETC), and Polygon (MATIC) have grabbed attention of the investors in the second quarter of 2021.
A recent report from CoinMetrics shows that despite the sharp correction of crypto prices on May 19, 2021, the top 3 gainers during Q2, 2021 were Dogecoin (DOGE), Ethereum Classic (ETC), and Polygon (MATIC), which increased by +392%, +297%, and +227% respectively. During the same time, Bitcoin price dropped by -39%.
DOGE’s price dropped by -66% on May 8, 2021 from its all-time high (ATH) at US$0.74. Despite this drop, Dogecoin managed to finish the second quarter in the green with triple digit growth (+392%). The CoinMetrics report also points out that as of June 30, 2021, the total number of addresses holding at least 1 DOGE has increased by 6,10,000. The number has risen from 3.09 million addresses on April 1, 2021 to 3.7 million addresses on June 30, 2021.
In fact, this rise of the altcoins and the consequent decline in the BTC price during the second quarter brought down the dominance of Bitcoin in the global crypto market to just 45% on June 30, 2021. This was BTC’s lowest level of dominance since July 2018.
CoinMetrics also pointed out that the main reason for Bitcoin’s decline in the second quarter is the crackdown on cryptocurrency mining (mainly BTC mining) by the Chinese authorities. This sudden crackdown made the hash rate of BTC mining reach its lowest level since late-2019. Higher hash rate is considered important in the proof-of-work network like Bitcoin because higher mining hash rate makes it more difficult for malicious agents to disrupt the network.
Though CoinMetrics said in its report that the down fall of the hash rate is temporary, it also warned that the recovery will take time. The report said that the has rate “should eventually recover once miners start to power back up in their new locations” and it “won’t happen overnight since it will take time to build and set up enough facilities to accommodate the sudden influx of new demand.”
CoinMetrics made it clear that the Bitcoin price may have suffered downfall in the short-term but in the long-term, headed forward the Bitcoin system will only have positive development. Its report 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.”