In many industries, the most powerful and influential party often dictates the flow of things. In a developing space like cryptocurrency, this cannot be more accurate. For the other coins — the smaller currencies — wherever bitcoin goes, they go. It is usually that simple. Crypto traders have come to accept this as a rule of crypto trading because the price of all the coins happens to tread closely with that of BTC, based on past events. As it has happened numerous times in the past whenever BTC price and value go up the rest of the crypto market reciprocates this. On the other hand, when the coin tumbles, it drags its smaller counterparts down the charts as well.
However, as the market matures, many blockchain projects have begun to generate their own unique value, separate from Bitcoin. With these developments being on the rise, there is less connection between bitcoin and other alternative coins (Ethereum, Dogecoin, Litecoin, Cardano, Stormtoken, etc.). The increased autonomy of altcoins continues, and many signs in the market have begun to indicate this fact. For example, for the first time in three years, the dominance of BTC has reduced to being responsible for just 40% of the cryptocurrency market cap. This was mainly reflected during the storm crypto had to go through in 2021.
When major market price movements happen, most other cryptocurrencies are still very much in line with Bitcoin’s movement, as the crash in May suggested. The crash in May, which primarily affected bitcoin, is practically one of the most devastating events to ever storm crypto trading as a whole. Some cases have been noticed where altcoin prices remain largely unaffected, even in the most serious cases of BTC price swings. We will review three conspicuous examples of these coins that have successfully weathered the storm, despite the devastating BTC crash in May 2021.
Below is the price chart for BTC, provided by the Cointelegraph Markets Pro platform. In the days leading up to May 20, 2021, Bitcoin lost more than 15% of its value against the dollar, dropping from about $56,000 to the mid-$30,000s, before bouncing back to about $42,000. While this event was primarily a “bitcoin issue”, the effects were sure to storm crypto trading in general, and other digital currencies were also majorly affected.
The question to be asked therefore is how three popular coins survived against the price of Bitcoin during this huge market depreciation.
Polygon is a platform it is used to build and scale decentralized applications. It is positioned at the heart of a rapidly growing area of the decentralized finance (DeFi) ecosystem. In a single week in May 2021, the platform added 75,000 new users, which amounted to $1 billion worth of transaction volume.
MATIC, which is Polygon’s token, performed against the rhythm of the general cryptocurrency market, which generally went down the charts. It enjoyed an impressive hike in May, and reached a record high position of $2.18 on May 18, from a previous $0.36, just the previous month. In a month that has practically ushered in sad news for many other coins as they went in the direction dictated by Bitcoin, Polygon/MATIC practically gained up to 106% against the USD, and 142% against the poorly performing Bitcoin.
Polygon/MATIC last experienced a rise in its VORTECS Score, registering a high sequence of values of 90+, which culminated to an eventual score of 99, for May 15, 2021. The VORTECS, by the way, is a metric generated by an algorithm. It compares the patterns of the coin’s market condition, against data that dates back to previous years.
The MATIC registered score marks the highest ever on record for any token. Arriving at such a score also signifies that the model is definitely confident in its past, as similar data points combination consistently preceded the spikes of consequential prices.
So far, the rallies recorded by MATIC have emulated similar market and social activity scenarios, as there have been streaks of strong VORTECS scores — as indicated by the red boxes in the graph. These streaks have appeared every two or three days before the next surge (indicated by the red arrows).
It is important to note that VORTECS is trained upon conditions resulting in price appreciation, which occurs about 48 hours beyond the score. Therefore, the repeated pattern of a high score being closely followed by price gains totally validates the methodology behind this algorithm.
Solana is another coin to defy the downward trajectory of BTC in 2021. The coin achieved an all-time high price, rising above $58 on May 18, 2021. It is a “layer-one network” that went through a solid fundraising phase. It also has an array of market applications ready for its use, which have kicked off in the market in the last couple of months.
Solana/SOL achieved a high VORTECS score in the middle of May 2021, despite the catastrophic crash experienced by BTC in the market. SOLs VORTECS score grew even more confident, sending that period with 4% up against USD, and 23% up against bitcoin.
In the chart below, we show the value of Solana/SOL against BTC, signifying how well the coin fared despite the market crash happening at the time.
ONE is Harmony’s token. It is another asset that experienced a successful week despite the negative dive taken by many of its fellow coins. Harmony/ONE reached the price of $0.17, after a series of strong VORTECS Scores. This was very close to the all-time 0.20 record it achieved back in March.
After the market crash which happened on May 19, Harmony/ONE took a hit like the others. However, it was among the quickest currencies to recover the next day. In a week, it gained around 24% on the dollar, and about 50% on Bitcoin, as contained in the chart illustrated below.
At the point where the market turns red, every investor becomes concerned with parking funds safely. Traders usually start to rely on stablecoins, or they engage in different types of analysis, to determine which of the altcoins are most likely to go against the negative downward trend of the market, to increase their chances of making a strong recovery.
VORTECS Best-performing Strategies
Ever since the launch of the VORTECS algorithm in January, the Markets Pro team has made efforts to track up to 42 strategies. As of May 20, the top returns, as detailed in the methodology used for the tracking, are as follows:
Holding top one hundred alternative coins (altcoins): 298% return
Holding Bitcoin: 22% return
Best performing VORTECS strategy (time-based): 2,745% return
Best performing VORTEC strategy (score-based): 2,691% return
The events of May 2021 in the world of cryptocurrency were quite negative, but they gave room for the realization of some interesting facts, the most important being that there are certain coins that do not dance to the tune of bitcoin all the time. With the degree of hit recorded by many trading platforms, this is relatively positive news. Many crypto traders can now devise trading strategies in order to recover lost money and capital. They can successfully achieve this by leveraging on these “defiant” virtual currencies that maintained their growth rate during and after the market crash. Whether MATIC, Solana, Stormtoken, or Harmony, one can predict that there will be more altcoins in the future that will survive turbulent market situations caused by bitcoin. Redot.com will constantly keep you updated with any relevant market changes.