These altcoins have offered double-digit returns throughout the Bitcoin bull run
Traders positioned long in Bitcoin, which is currently trading above $56330 are profitable; however, the rangebound price action over the past two months has led to stunted growth in portfolios.
Altcoins with double-digit returns, in the low and mid-market capitalization range, have more unrealized profits from the rally and Bitcoin’s rangebound price action. Overall, the impact at the end of Q1 2021 hasn’t led to a drop in Bitcoin’s price yet and that is a significant improvement over the quarterly returns over the past year.
Bitcoin’s quarterly returns are now positive for the past 4 quarters, and that makes a whole year of growth in price. The quarterly closing price is consistently higher for the fifth quarter now based on data from Skew.
Traders have been anticipating that speculating future growth, based on the on-chain activity and demand, Ethereum’s market cap would be higher than $197 Billion. However, the narrative of ETH being undervalued at $1700 level continues and this has led to conservative growth in portfolios dominated by ETH.
At the current price level, 93% HODLers are profitable, though on-chain analysis by intotheblock signaled that the sentiment is currently bearish. The trade volume has dropped over 20% and the dropping liquidity may lead to rangebound price action over the following week.
HODLers with ETH in their portfolio for over a year, are still HODLing ETH, but traders who bought close to the $1600 level, where the price oscillated several times, are anticipating double-digit returns and a price rally, owing to the prolonged bullish sentiment, open interest on derivatives exchanges and the returns from DeFi and other alts.
Irrespective of Bitcoin’s extended price rally and Ethereum’s undervalued price and market capitalization, altcoins like FIL, HOT, RUNE, VGX and AR, from top 100 altcoins based on marketcapitalization from coinmarketcap.com have offered double-digit returns on exchanges like Binance and OKEx.
STORJ has offered 1030% returns YTD; CAKE has offered 2822% and the list of double-digit returns is long, including FIL, THETA, MANA, UNI and SUSHI.
The top 3 DeFi tokens based on price action over the last week, include tokens that rank up to 100 in market capitalization, have low liquidity by high trade volume, high returns. Based on data from coinmarketcap.com
In the case of DeFi tokens, the opportunities to book unrealized profits are lower, despite that they have offered double-digit returns to traders, and improved overall portfolio returns with as low as 20% of the portfolio value. Q1 2021’s returns on portfolios have offered an insight into the top altcoins: including 5-20% of the trading portfolio for such alts (for double-digit returns) may be a good strategy.