Small Cap Altcoins Continue to Predict Bitcoin and Ether Gains Until March

what are altcoins

Small-cap altcoins have been one of the best performing of late. Even during the downtrend, these low-cap cryptocurrencies have delivered better gains compared to their larger counterparts like Bitcoin and Ethereum. They have moved this performance to another week as small cap altcoins show their profitability again by leading the way while the rest of the market suffers.

Small Cap Altcoins Remains in the Lead

Last week, small-cap altcoins were the only index to make gains, while all others are drowning in losses. It continued this week as it remains the only index in the green with other indexes languishing in its wake. These small-cap altcoins tend to fuel a small but tight-knit community of supporters, which often explains the consistent gains.

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The monthly performance of these indices is stark when placed side by side. For example, the Small Cap Index has been on the rise this month, reaching a positive return of no less than 17% this month. However, the other indices made up of cryptocurrencies with much larger market caps have not been able to record the same returns, all over the same time period.

Small Cap Index is the only one in green | Source: Arcane Research

This index climbed so high after hovering around 0% in the days leading up to March 16. It was at this point that the Small Cap Index started to gain momentum and became the only index in the green.

How the Major Indices Have Performed

Looking at the Bitcoin, Mid and Large Cap indices, it is clear that smaller altcoins have been the best investment in recent times. These have all remained in the red, even after a small recovery recently recorded in the market. These indices remained below the profit margin for most of the year, making them a less attractive investment option compared to the small-cap altcoins.

Crypto Market at $1.8 Trillion | Source: Crypto Total Market Cap on TradingView.com

Bitcoin is in a downtrend, registering one of the highest loss margins for any index. It posted 5% losses alongside its counterpart, the Small Cap Index, which also saw a negative return of -%5.

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As for the Large Cap Index, it slightly outperformed Bitcoin and Mid Cap, but still failed to make it into the gain zone. It also remains in the red area at -3% recorded in the past month.

However, Ethereum has been one of the strongest performers and is up 1% since its market dominance over the past week. Relative to Bitcoin, the ETHBTC is now above 0.07 again.

Featured image from Coinlib, chart from TradingView.com

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