According to Coin Metrics, the Altcoin season may have arrived, but not for all cryptocurrencies. Because, there are two names that holders have to say goodbye to profits in the meantime, namely XRP and EOS. XRP’s story is quite easy to understand, while EOS is the story of Dan Larimer with who resigned from his post as the CTO of the development company Block.One.
In this week's State of the Network @natemaddrey looks at recent altcoin performance. Is a new altseason incoming?
Read the full issue here:https://t.co/pO4mmIPhby
— CoinMetrics.io (@coinmetrics) January 19, 2021
Research: Altcoin season is upon us, but not for XRP or EOS
In its latest ‘State of the Network’ bulletin, Coin Metrics has delved deeper into altcoins and their impressive performance so far this year. Coin Metrics acknowledges that many of the altcoins that surged during the 2017 crypto boom are now dead and gone and replaced with a new DeFi asset class.
Coin Metrics stated:
“With new capital flowing into Bitcoin and Ethereum, some of that money may start flowing into altcoins.”
The report acknowledges that institutional investment is largely behind the current rally and institutions are wary of altcoins:
“Altcoin investing is largely considered a retail phenomenon. Similar to penny stocks, it’s often driven by individual investors looking for outsized gains.”
There are two notable exceptions to this trend; XRP for Ripple and EOS for Block.One. The glaring red charts for these to former darlings of crypto show that XRP has lost 54.6% since December 1, and EOS has dumped 7.5% over the same period.
Ripple’s problems began when it finally lost its battle with the SEC and the sell-off began. Since its high in late November was near $ 0.70, XRP has fallen nearly 60% to below $ 0.29 today. There have been reports of Ripple executives selling their stashes, while Grayscale dissolved its XRP Trust as confidence in the company dwindles.
As mentioned, the company’s CTO Dan Larimer announced his resignation earlier this month and there is very little information available on the development of the product for the project. Over the past year, EOS has lost 23% on a flat chart for months. Since its February 2020 high of $ 5.40, it has fallen 50%, and since April 2018’s all-time high of more than $ 22, EOS has been breached 87%.
Besides the bad luck names like EOS and XRP, the ones enjoying the Altcoin season include Polkadot, Binance Coin, Chainlink, and of course Ethereum. Coin Metrics marks Cardano, Decred, and Dogecoin as three that have gained three-digit gains since December 1, outperforming Bitcoin.