Altcoins performed solidly in July
Cryptocurrencies had a conflicting second quarter and a dormant start for the third quarter. As the price of Bitcoin [BTC] shifted sideways, most major cryptocurrencies followed their lead due to their high correlation with BTC. However, there were several altcoins on the market that succeeded in drawing more attention than Bitcoin and Ethereum in the month of July.
According to a recent report from the eToro investment platform, Bitcoin remained the number one investment asset, with Ethereum in second place in July. Bitcoin gained 7% compared to investments from the previous month, while Ethereum managed to gain 89%. However, Binance Coin, which ranked 15th in June in terms of investment volume, rose to sixth position by gaining 521%. Likewise, Zcash jumped from 13th to seventh position, gaining 294% in the volume of investments.
The graph indicates that most retail investors in July chose high-performance altcoins like Cardano [ADA], Tezos [XTZ], Zcash [ZEC] and Binance Coin. However, the growth of these altcoins was not only due to a strong correlation with Bitcoin, but driven by an increase in their operation compared to June.
Each project had more development, with for example, Cardano getting ready for the launch of the Shelley chain, which took place on July 29th.
According to a recent Binance report, altcoins even topped the top 10 in terms of returns offered for contracts with USDT margin. VeChain [VET] and Chainlink [LINK] outperformed all other cryptocurrencies, registering 95% and 70% in earnings, respectively. Bitcoin posted 24% returns. The risk of low volatility in Bitcoin also played an important role in the success of others.
As the market moves towards a bullish speculative market, volatility remains high and traders are still protecting against the risks of sudden sales in the BTC market using altcoins.