Coin Metrics: 2021 Could Be A Breakthrough For Altcoins


Coin Metrics researcher Nate Maddrey made a general assessment of the market by pointing out that the altcoin season is coming in the article he published. The researcher said that 2021 could be the turning point for altcoins.

Nate Maddrey, who started his article with a brief statement about the altcoin, stated that many altcoins emerged during the 2017 ICO craze and many of them disappeared. He said that with the emergence and rise of DeFi, altcoins started to gain popularity and investors began to diversify their portfolios with these tokens. He then pointed to the current rally and stated that some of the money flowing into bitcoin and ethereum could shift to altcoins.

Altcoins are growing with retail investors

Maddrey emphasized that the rally seen is different from other bull rallies with the influence of institutional investors, and said that it is a belief that altcoin investments are shaped by the interest of retail investors.

“Those who invest in Altcoins are usually retail investors who want to make a profit. Institutional investors buy ethereum with bitcoin according to their liquidity and risk appetite.

Maddrey stated that since December 2020, bitcoin and ethereum have outperformed many altcoins.

Which altcoins surpass BTC and ETH?

The researcher focused on three cryptocurrencies:

  • Cardano (ADA): ADA, which saw the number of active addresses ATH in 2021, has seen an increase of 146% since December 2020.
  • Decred (DCR): Up 126% since December 2020, outpacing bitcoin and ethereum. Stating that DCR has challenged some innovations built on ethereum, the researcher also showed that the active addresses of cryptocurrencies are increasing.
  • Dogecoin (DOGE): The DOGE, which is stated to have risen with the influence of TikTok and Elon Musk, has increased by 174% since December. However, researcher Maddrey said the demand for DOGE could be an early sign that the altcoin season is coming.

DeFi rising

Nate Maddrey stated that DeFi tokens outperform bitcoin and ethereum. Making a statement by taking into account the data between December 2020 – January 17, 2021; He stated that Uniswap, Aave, Synthetix, MakerDAO, SushiSwap and Curve recorded more growth than bitcoin and ethereum.

“At this stage, DeFi draws attention from traditional investors rather than institutional investors. With the disappearance of old technologies and projects and the effect of increased money flow, 2021 could be a potential turning point for altcoins. “


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