Coin Metrics Researcher Nate Maddrey Gave Assessment That Altcoin Season Is Coming
Coin Metrics researcher Nate Maddrey gave a general assessment of the market in his article, pointing out that the altcoin season is coming. The researcher said 2021 could be the turning point for altcoins.
Nate Maddrey, who began his post with a brief statement about Altcoin, stated that many altcoins appeared during the 2017 ICO craze, but many of them disappeared. He said that with the emergence and rise of Defi, altcoins began to become popular, and investors began to diversify their portfolios with these tokens.
He pointed to the current rally, saying that some of the money flowing into Bitcoin and Ethereum could shift to altcoins.
Maddrey said that the rally is different from other bull rallies that have influence of institutional investors, but altcoin investments are shaped by the interest of retail investors.
“Altcoin investors are often retail investors who want to make a profit. Institutional investors, on the other hand, buy Bitcoin and Ethereum according to their liquidity and risk management.”
Since December 2020, Bitcoin and Ethereum have outperformed many altcoins, Maddrey said, But there are altcoins that have outperformed BTC and ETH.
Cardano: the number of active addresses in 2021 has seen an increase of 146% since December 2020.
Decred (DCR): outperformed Bitcoin and Ethereum, rising 126% since December 2020. DCR challenges some of the innovations built on Ethereum, the researcher said, that the DCR active addresses are on the rise.
The Doge coin, which has increased under the influence of TikTok and Elon Musk, has risen 174% since December. Researcher Maddrey said the Doge demand could be an early sign that altcoin season is coming.
DeFi rising
Nate Maddrey stated that DeFi tokens outperformed Bitcoin and Ethereum. Considering December January 2020 — January 17, 2021, Maddrey noted that Uniswap, Aave, Synthetix, MakerDAO, SushiSwap and curve had more growth compared to Bitcoin and Ethereum.
“At this stage, DeFi is attracting interest from retail investors rather than institutional investors. The year 2021 could be a potential turning point for altcoins, driven by the disappearance of old technology, and the increasing flow of money in Defi by institution’s.”
Originally published at https://thecryptobasic.com on January 21, 2021.
