Sharing market data and analysis, CryptoCompare analyzes how institutional investment could become more diverse in the future and which altcoin projects will stand out. In this article, we examine the market analysis of CryptoCompare analysts, which we have compiled as Kriptokoin.com.
Institutional investors are turning to these altcoin projects
The CryptoCompare report says that institutional investor appetite is shifting towards altcoin projects. According to the firm’s recent market analysis, the dominance of Bitcoin-based investment products has dropped by 7%. While institutional investor development in the industry has been going on for almost a year, investors have turned their attention to opportunities like Ethereum (ETH) and DeFi. Total assets under corporate management nearly doubled from $36 billion in January 2021 to $58 billion in December. The report links institutional investor development with the overall growth of the cryptocurrency and blockchain market. The research also deals with the relationship between social media and crypto money.
Another thesis the report put forward was the promotion of NFTs, with various Hollywood celebrities joining the hype train on social media platforms like Twitter. Even though the flippening, that is, the “flip” event, has not yet been among the well-established cryptocurrencies, Cardano (ADA) falling to the 5th place or Dogecoin (DOGE) leaving the top 10 can be given as examples. As the report shows, 30% of the top 10 cryptos by market cap have held their position in the rankings for the past 2.5 years. Additionally, at the end of 2020, four projects from CoinMarketCap’s top 10 are no longer included in the ranking. As a result, analysts highlighted that the market is a relatively young industry that is still in the early stages of its development, along with large inflows of funds into the sector in 2021. This also means that there are plenty of opportunities for investors to take advantage of after doing proper due diligence.