Introduction
Cryptocurrency markets change quickly, so it is important for investors to monitor key metrics that show market trends, performance, and sentiment. This two-part series shares 20 charts every crypto trader should know.
In Part 1, we explored critical Bitcoin charts to help investors understand the bigger picture. Now, in Part 2, we turn our attention to altcoin charts, diving deeper into metrics that reveal the performance and potential of altcoins. Whether you’re tracking DeFi activity, NFT adoption, or market sentiment, these charts provide valuable insights to navigate the ever-changing crypto landscape.
Let’s explore ten essential altcoin charts every trader should follow!
Altcoin Charts
These charts provide essential data to understand altcoins’ market position, performance, and future trends.
1. Top Altcoin Market Capitalization
The market capitalization of top altcoins measures the total value of circulating non-bitcoin cryptocurrencies like Ethereum (ETH), Solana (SOL), and Cardano (ADA). A rising market cap signals growing investor confidence, often due to positive upgrades or increased adoption. For example, Ethereum’s Shanghai upgrade boosted demand as stakers could withdraw and re-stake more efficiently.
This chart helps traders:
- Spot ecosystem shifts: See which altcoins lead during bullish phases.
- Identify market risks: Sharp drops may indicate regulatory concerns or project issues.
Tracking these data helps investors understand capital flows and recognize potential trading opportunities.
2. Ethereum Gas Tracker
The chart of Ethereum gas fees tracks the average transaction fees on the network, offering insight into network demand. Spikes in fees signal network congestion, and often happen when DeFi activity surges. For example, gas fees skyrocketed during popular NFT drops.
High fees can prompt users to explore alternatives like Arbitrum or Optimism, which offer lower-cost transactions.
This chart helps traders plan their transactions and spot trends indicating when the network is under heavy load.
3. DeFi lending/borrowing Volume Chart
The chart of DeFi lending/borrowing tracks the total value of the assets that are lent and borrowed across decentralized finance protocols. When borrowing volumes rise, it can indicate increased market speculation that drives liquidity demand, like during bull runs when traders take leveraged positions. Conversely, a drop in borrowing suggests caution, with investors retreating to stable assets.
This chart helps traders assess market sentiment and shifts in DeFi activity. Platforms like Aave and Compound often reflect these trends, signaling key turning points in market confidence.
4. Layer-2 TVL chart
The Layer 2 TVL chart monitors the Total Value Locked (TVL) in Ethereum’s layer-2 solutions, such as Arbitrum and Optimism. Rising TVL highlights growing adoption of these networks for cheaper and faster transactions, often driven by demand from DeFi, gaming, and NFT projects. For instance, Arbitrum saw a TVL surge in 2023 due to increased liquidity in its DeFi ecosystem.
These metrics are essential for understanding user migration from Ethereum’s mainnet to Layer 2s, which can boost altcoin prices associated with the networks.
5. NFT marketplace volume by blockchain
The NFT marketplace volume chart tracks trading activity across blockchains like Ethereum, Solana, and Polygon. High trading volumes often signal strong demand for NFTs, indicating where the action is in the underlying altcoin ecosystem. A rise in activity on alternative chains could mean they’re gaining adoption over Ethereum in specific niches. For example, Ethereum dominates the NFT market, but Solana and Polygon have gained traction due to lower fees and faster transactions, according to NFTScan.
6. DeFiLlama narratives tracker
The DeFiLlama narratives tracker highlights trending themes and sectors in the cryptocurrency market, such as liquid staking, Layer 2 adoption, or real-world assets (RWAs). By aggregating data from DeFi protocols, this tool helps investors spot emerging narratives that drive market activity and influence altcoin performance.
For example, during the rise of liquid staking platforms like Lido, the tracker showed increased capital flow, signaling a key opportunity for altcoin growth. Traders can use this tool to align their strategies with market trends and identify early movers in the DeFi ecosystem.
7. Social media sentiment analysis
The social media sentiment analysis chart tracks discussions and emotions surrounding cryptocurrencies on platforms like Twitter, Reddit, and Telegram. Positive sentiment often indicates growing interest, while negative sentiment may signal caution or fear among traders.
For example, a surge in mentions of altcoins like Solana or Polygon during major announcements can reflect community excitement and potential price movements. Conversely, rising negative sentiment could foreshadow selling pressure.
This chart helps traders understand market mood, and identify when hype or skepticism could influence price trends. Analyzing sentiment alongside other metrics provides a broader view of market dynamics.
8. Wallet activity tracker
The wallet activity tracker monitors what’s going on in blockchain wallets. This could be things like large transactions, active addresses, and changes in wallet balances. An uptick in wallet activity often reflects growing interest or significant market moves. For instance, spikes in Ethereum wallet activity during DeFi booms indicated increasing participation in staking and trading.
Sudden large transfers from whale wallets to exchanges can signal potential sell-offs, while rising balances in non-custodial wallets suggest accumulation.
This tool helps investors track shifts in market dynamics, offering early signals for price changes.
9. Staking participation rate by altcoin
The staking participation rate measures the percentage of an altcoin’s total supply that is locked in staking. This can be viewed as a measure of long-term confidence in the network. Coins like Ethereum (ETH), Cardano (ADA), and Solana (SOL) rely on staking to secure their Proof-of-Stake (PoS) networks.
A higher staking rate indicates trust in the network’s future, because it means stakers are locking their assets to earn rewards, thereby supporting network stability. For example, Ethereum’s transition to PoS boosted its staking participation, reflecting optimism about its scalability and growth.
This metric is a critical indicator for investors evaluating the health and long-term potential of altcoin ecosystems.
10. Meme coin market cap chart
This CoinMarketCap chart helps investors understand speculative trends and gauge market phases where meme coins thrive.
The chart of meme coin market cap tracks the total value of popular coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), as well as lesser-known ones. Meme coins often see spikes in market cap during bullish phases, fueled by community hype, social media trends, or celebrity endorsements.
For example, Dogecoin’s surge during Elon Musk’s tweets showcased how sentiment can drive speculative activity. Rising meme coin dominance reflects high-risk appetite among traders, while declines suggest a shift toward more serious assets.
Conclusion
There are a myriad of charts to steer you through the altcoin markets. These ten examples, along with the Top Ten Bitcoin charts in part 1, will help you keep your bearings in these stormy seas. Godspeed cryptonauts!
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