Bitcoin and Ethereum have been battling for market dominance for the last few months. The upcoming Ethereum Merge expected in a couple weeks has been drawing attention from investors because the blockchain upgrade is moving to a Proof of Stake system to reduce energy consumption and improve scaling.
When Ethereum makes big price moves, other Altcoins competing for the space usually follow suit. This week, I’ve been monitoring and comparing price strength on 4 major Altcoins after the recent dip in the market: $DOT, $AVAX, $ATOM, and $MATIC.
Here are the rankings in ROI between the recent lows from June to price today:
Polkadot ($DOT): +21.93%
Avalanche ($AVAX): +37.34%
Cosmos ($ATOM): +136.36%
Polygon ($MATIC): +163.57%
That’s not to say that one project is better than the other. Based on price action since June, Solana, for example, has an ROI greater than Polkadot but has a horrendous track record regarding blockchain security and has questionable decentralization practices. And while Polkadot’s ROI is the lowest on this list, it’s still the most sought-out asset by large crypto-focused investors:
Low prices aren’t a bad thing if we’re bullish long-term. If Polkadot moves to replace much of its competition in the Layer 1 space, then grabbing $DOT at $7 might be a steal considering that it’s All Time High peaked at ~$55. And that might explain why so many crypto-focused funds and hedging their bets on Polkadot.
When we’re talking about real-world use, then I’m bullish on Polygon ($MATIC) for a few reasons:
- As a Layer 2 protocol, it’ll continue to provide cheaper transaction fees on the Ethereum blockchain after the Merge
- The deal they signed with Disney
- The deal they signed with Mercedes
Not many crypto projects can boast being the blockchain of choice for major brands like these. When there’s talk about “crypto mass adoption” this is exactly what we’re looking for: mainstream, familiar brands adopting this new technology on a mass scale. And the price action reflects this.
Charts for reference:
If you enjoy reading these posts, consider subscribing to ‘The Rebel Economist‘ for free!
I dedicate a considerable amount of time researching the markets, so new subscribers are always appreciated (buying me a coffee is probably appreciated even more, so you have an option to donate a couple dollars every month if you enjoy the content). You can use the link in the button below to share with a friend or on social media. As always, the information provided here is for educational purposes only; nothing here is financial advice.