Analyst says Another Altcoin Drop will be a Buy the Dip Opportunity
In April, the world’s leading cryptocurrency jumped over 40% but so did altcoins. Though this time they didn’t outperform BTC’s spike by a wide margin, there was still a substantial uptrend.
“Alts not only held up well, but have bounced back stronger in many cases,” noted analyst Ceteris Paribus.
Bitcoin is in true bull mode when it indiscriminately rekts alts on the way up.
— The Wolf Of All Streets (@scottmelker) April 29, 2020
Ethereum rebounded well with a spike of 61%. The network also recorded more than one million smart contracts since March 12th.
In March overall, the smart contacts deployed on the network were an all-time high, 75% higher than the previous record set in October 2019.
However, a large amount of these contacts were either empty or related to GasToken, reported Arcane Research. These could be used to deploy contacts when gas prices are low only to destroy and get refunds when gas prices are high.
Even filtering these contacts out, March was still a record-breaking month, only beaten by November/December 2018.
Altcoins starting to look good
“Alts starting to drift off while BTC shows strength. Alts not recovering on BTC pullbacks. Alts starting to drift off while BTC shows strength & not recovering on pullbacks,” said analyst DonAlt.
Altcoins are only a good buy for either short-term trades or during mass panic and according to him, panic hasn’t hit yet.
“If BTC fuckery (be it up or down) leads to an altcoin drop in the next weeks to months I think that altcoin dip is one to buy. I'm patient but some of this stuff is starting to actually look good on a large timeframe for the first time in ages,” added the analyst.
Interestingly, this week, two hottest altcoins, Chainlink and Tezos came together. Chainlink’s decentralized pricing oracle will be providing the Tezos community projects with real-time data.
With this integration, Tezos projects can pull from active pricing feeds for different assets to build projects.
“I think it's going to be used a lot for DeFi, maybe some decentralized insurance. But from what I can tell, there's a lot of interest in having DeFi on Tezos. And having a good oracle mechanism is basically now a prerequisite for having a well functioning DeFi application,” said Chainlink CEO Sergey Nazarov.
All indexes ended April with gains of over 30% but small caps increase the most with a 335% gain. In the past month, the market cap excluding bitcoin rose by $22 billion.
Down the line, other big performers include Hyperion (423%), Digibyte (23%), Hive Token (99%), Zilliqa (65%), Kyber Network (58%), Enjin Coin (56%), Zcash (49%), and Matic (47%).
Kyber Network particularly is getting attention as the network’s planned upgrade will allow KNC token holders to earn staking income. As such, the number of addresses with KNC has increased by 15% since early January, as per IntoTheBlock.