Among Bitcoin, altcoins and shitcoins, something fundamentally changed for the latter. While altcoins soared through the figurative roof, Bitcoin is still strutting with little or no volatility.
As for the shitcoins, this mysterious change took place exactly 17 days ago, when altcoins, shitcoins, mid-cap perps [perpetual contract], all started surging. This sudden surge was meteoric as they outshined BTC. This article takes a look at the performance of altcoin, mid-cap, and shitcoin over the course of Q1, Q2 and Q3’s 2-week performance to-date.
[According to FTX, shitcoin-perp tracks the price of a basket of low-market-cap coins, using a weighted average of their prices.]
It can be seen clearly that the average performance over two quarters that Bitcoin has been slacking. Although BTC soared from mid-Mach to June, it’s performance is not amusing, in fact, it is stale. The volatility of Bitcoin has come to yearly-lows and seems to be digging deeper.
Also, it is clear that in all quarters mid-cap perps and shitcoin perps have out-performed bitcoin by a huge margin. Additionally, the YTD performance showed that shitcoin perp had the highest performance of 104%, followed by mid-perp [86%]. Bitcoin’s YTD performance was almost 3-4 times less than mid and shitcoin perps.
Why the sudden altcoin surge?
The reason is simple, it is that time of the cycle, yet again, where altcoins and shitcoins surge as BTC dominance drops. It is alt season. Although unknown, the surge for shitcoin and mid perps started on June 27, and have risen almost vertically since then.
One of the reasons for the start of this altcoin rally could be Compound’s COMP token. The liquidity or yield farming seems to have piqued interest for many investors.
Although it looks like a retracement/pullback is due, it cannot be confirmed if it will actually arrive or the altcoins will surge again. A pullback here would be a good time to stack shitcoins for the next leg, especially, when the bull run begins.