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At over $140 billion, the altcoin market capitalization has broken multi-year resistance levels. This should come as no surprise when looking at the truly monumental gains that many altcoins have enjoyed over the past few months. 

Developments surrounding Ethereum (ETH) 2.0 and the budding decentralized finance (DeFi) industry are helping to push altcoin valuations even higher. As a result, Bitcoin has seen its market cap dominance declining slightly in the past quarter.

Altcoin Market Capitalization Takes Off

Tweeting on Tuesday, crypto analyst @rektcapital highlighted that the altcoin market cap was above a major resistance level, having just crossed the $140 billion mark.

In mid-June 2019, the total altcoin valuation failed to cross $139 billion despite weeks of price gains that began in the months leading up to it.

The total altcoin market cap first breached the $140 billion level back in November 2017. At the time, the market was in a speculation-driven bull run that saw the figure top out at about $541 billion in early 2018.

At the current valuation, the altcoin market cap is still over 73% down from its January 2018 all-time high. The year-long bear market of 2018 caused altcoin prices to decline by an average of almost 90%.

With the resistance range between $140 billion to $180 billion, any move above the latter will likely signal a sustained bullish advance for altcoins. For now, the current spike might be a deviation followed by a swift retrace dampening hopes for a new altseason.

DeFi Dominating 2020 Crypto Scene

From occupying a corner of the crypto market to dominating the entire landscape, DeFi has become a major highlight of the cryptocurrency industry in 2020.

Multiple pieces of evidence for this rise in DeFi prominence exist across the virtual currency space with the total value locked (TVL) in DeFi projects growing from $680 million to $4.69 billion year-to-date.

Chainlink (LINK) is now a top-10 cryptocurrency with its price growing over 600% YTD. The project is the most popular oracle utilized by DeFi projects, translating data between off-chain sources, and on-chain smart contract protocols. As previously reported by BeInCrypto, LINK trading volume recently surpassed Bitcoin (BTC) on Coinbase.

Yield farming on projects like Compound (COMP), Balancer (BAL), and (YFI) also continue to attract interest. Some market analysts, however, state that the speculative yield chasing craze poses risks to the emerging DeFi space.

The move to full proof-of-stake (PoS) implementation is also driving activity towards Ethereum and Cardano (ADA). Investors are eyeing the possibility of earning significant rewards from staking their crypto holdings on forthcoming PoS chains.

The post Altcoin Market Capitalization Breaches Key Resistance Level appeared first on BeInCrypto.

3 thoughts on “Altcoin Market Capitalization Breaches Key Resistance Level

  1. I'm honestly mind boggled reading some comments claiming they lost between 100k to literally millions over night?

    HOW? I'm not asking how you accumulated that money to begin with but literally how can some throw all of their savings into 1 altcoin?

    There's a comment I've seen of a guy who sold his house and car and is now 99% down??? Someone losing 30 years of his life savings? College Students who are in debt and are down even more now? Seriously guys?

    Never put more than 50% of your capital into one investment expecting it to give you huge gains in few months.

    And if then at least go for some stable investment like gold or silver. Where you know you will at least have some physical value.

    The drop and death of some altcoins was always to be expected, because the reason Bitcoin and Crypto were made in the first place was to replace USD as a stable exchange that can't be controlled by the banks and has a limited amount, much like gold, not as a gambling game. But because of the Bitcoin creep 2 years ago, tons of people started investment without seeing the true reason of these coins.

    All these shitcoins doge, shib etc. are a one time thing, they peaked once and then die. Sure you can hold onto them, but with coins like these? You can do it for decades. And the chance is greater for the market to regulate itself and erase these huge number on crypto before you can cash out.

  2. I staked enough dot about 50 days ago to get a daily return and it is mostly a set it and forget it affair. However, it is more like keeping a garden or house plants. I started noticing that that my rewards were in a slump, so I went to check what was going on with the validators on Polkadot.js. Turns out that about 10 out of my 16 validators were now oversubscribed so I was relying on the last 6 to do all the work. Went back through, unsubscribed from them and found 10 new validators to stake with. Costed about .06 DOT to go through that process and is well worth it. I'd suggest if your rewards are flatlining to go and check it at least once a month. Like weeding out a garden every now and then.

  3. So we all have some coins we refuse to remove from our portfolio which for me would be btc eth algo and dot. But which projects that you used to believe in heavily did you lose hope for? Maybe you sold to buy something else, maybe you got screwed (luna), or maybe the project just didn’t match your expectations For me its Cake, I used to think it would change my life with the apy but I quickly learned that yield chasing is basically just burning your money, apart from that they did nothing new or innovative and it just put me off, vet is another one I gave up on as it seemed they got pretty stagnant too. Will be interesting to hear what others have to say!

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