According to the latest findings from CryptoDiffer, Cardano (ADA) has significantly outpaced Ethereum (ETH) in terms of average daily developer activity on GitHub over the past month.
The data indicates that Cardano has surged ahead with a remarkable 245% lead over Ethereum in this crucial metric. The average daily GitHub commit size for Cardano stands at nearly 450, showcasing a robust and active development environment that is setting a new standard in the blockchain space.
This notable lead by Cardano in developer activity underscores the project’s commitment to ongoing enhancements and innovation within its ecosystem. GitHub, as a collaborative platform for developers, is a crucial indicator of a blockchain project’s vitality and progress.
— 🇺🇦 CryptoDiffer – StandWithUkraine 🇺🇦 (@CryptoDiffer) January 5, 2024
Cardano’s substantial lead in this aspect not only signifies the current momentum in its development efforts but also reflects a dedicated community and a forward-looking approach to blockchain technology.
In contrast, Ethereum, while maintaining a solid presence on GitHub with a daily average commit size of 183, now faces the challenge of catching up with the accelerated pace set by Cardano.
Source: Santiment
The data suggests that Cardano has positioned itself as a frontrunner in the development race, indicating a heightened focus on refining and expanding its blockchain capabilities.
Analysts believe that Cardano’s ongoing spike in development is a favorable indication of an expanding ecosystem. The project’s emphasis on enhancing interoperability and promoting collaboration through international workshops has played a significant role in establishing its prominent position in the blockchain-oriented field.
If current trends persist as anticipated, there is a likelihood that the price of Cardano will experience an upward trajectory in the upcoming days. This optimistic outlook is substantiated by the observed accumulation of the token by significant market participants, commonly referred to as whales, over the past two weeks.
ADA market cap currently at $18.446 billion. Chart: TradingView.com
Meanwhile, analyzing data from Santiment, NewsBTC conducted an assessment of the ADA holder addresses and observed a noteworthy increase in the holdings of the 1 million to 10 million ADA cohort.
Specifically, on December 20th, the supply held by this cohort stood at 16%. However, as of the latest available data, that percentage has seen a discernible rise, reaching 16.36%.
The augmentation in ADA holdings within this particular cohort suggests a strategic accumulation of the cryptocurrency by influential market players.
Whales, who typically control substantial amounts of a given asset, are often considered key indicators of market sentiment and can influence price movements. The observed increase in ADA holdings by this cohort implies a growing interest and confidence in Cardano among larger investors.
The performance of Cardano in 2024 is characterized by a combination of hope and prudence. The ADA coin has shown significant increases in trading volume, reflecting robust investor enthusiasm and market participation. The increase in trade volume indicates a rising belief in the long-term prospects of Cardano, fueled by ongoing development and support from the community.
Featured image from Freepik
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
With the Bitcoin halving expected to happen today, crypto enthusiasts are already starting to take positions in various altcoins. Among these, there are a number of coins that have shown a lot of promise when it comes to reaching the $100 price mark and this report takes a look at three.
MoonRiver (MOVR) Tops Lists Of Altcoins To Reach $100
The MoonRiver (MOVR) token has been one that has flown under the radar for quite a while now. This has to do with the fact that the price of the altcoin fell from its all-time high of $485 to as low as $5 earlier in 2023. However, this has not eradicated the bullish narrative for the asset.
So far, as the crypto market has recovered, the MOVR token has seen one of the most significant rallies. In the days leading up to Christmas, the price would go from around $6 to as high as $44 in a couple of days, notching 700% gains during this time.
Since then, the price has since retraced and fallen around 50%. But with the price still holding above $20, it shows a lot of promise for the coin. Given its low supply of around 11 million coins and a tendency to rise quickly in a short time, MoonRiver is one of the coins poised to break the $100 mark.
The Litecoin price rallied tremendously in 2023 leading up to its halving and was among some of the best-performing altcoins. However, once the halving was completed, the LTC price would crumble and fall into a slow and steady decline. However, this has changed as the coin’s price has begun to pick up steam once again.
With the Bitcoin reversal, the Litecoin price is on the up once again, briefly crossing $75 in the early house of Tuesday. The altcoin, which is often referred to as the digital silver, could be poised to see firmer rallies, especially as the Bitcoin halving draws closer, which is often a catalyst for the bull market. If this continues, then LTC could easily cross $100.
Avalanche (AVAX) Sees An Awakening
Just like Solana (SOL), the Avalanche network has undergone an awakening that has brought investors back to the chain. As a result, the AVAX price has rallied, going from its 2023 low of around $9 to as high as $47 in December 2023.
As the new year rolled around, the Avalanche network has continued to enjoy attention from crypto investors and this has helped it maintain its bullish momentum. Just like MoonRiver (MOVR) and Litceoin (LTC), Avalanche (AVAX) is another token expected to cross the $100 mark.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The crypto industry is now set for a strong bullish run in 2024, with most analysts predicting assets to reach new all-time highs. As a result, investors are always on the lookout hoping to jump on cryptocurrencies that offer the potential for substantial returns.
A recent social media post by a crypto analyst known pseudonymously as Emperor Osmo listed the best cryptocurrencies to get on in 2024 across various trends and market niches.
Expert Shares Ultimate Crypto Portfolio Guide
The analyst’s crypto recommendations for the year were based on an analysis by CryptoKoryo Research on the Dune Analytics platform. Each recommendation was placed into an investing risk curve depending on the sentiment of the general population of market participants.
Building the ultimate crypto portfolio for 2024 necessitates the selection of a mix of assets across the risk curves. Some more established blue chip cryptos provide stability and steady gains, while higher-risk assets have the potential for huge gains.
Recommendations on the left curve predominantly consisted of attention-grabbing cryptocurrencies. The cryptos included BONK, the first dog-themed coin on Solana, COQ, the first meme coin on Avalanche, CTXC, and PYR, the native token for Vulcan Forged, a blockchain game studio, and NFT marketplace.
These cryptos went on astounding price surges in the last quarter of the year and mostly thrived on hype among investors. According to CryptoKoryo, the five cryptocurrencies made an increase of 1,571% in the past three months. If the hype continues in 2024, we could see them reach new highs, particularly in the first quarter.
On the other hand, the mid-curve portfolio assets included less volatile layer-1 tokens, AI tokens, DeFi tokens, and layer-2 tokens. The 11 cryptocurrencies highlighted were AVAX, BCB, STEAK, GNX, ILV, KUJI, METIS, MPL, ORAI, PYR, and SOL, each going through a moderate price surge throughout 2023. According to CryptoKoryo, the five cryptocurrencies made an increase of 260% in the past three months.
Lastly, the right curve consisted of very stable assets with a higher potential for stable price growth in 2024. The cryptocurrencies highlighted were INST, JOE, LINK, METIS, ORAI, SKL, and SOL with a combined 253% performance in the past three months.
Source: X
While the recommendations on the left and middle curves are very volatile and have a higher chance of dumping, the right curve cryptocurrencies have created a proven track record over the years, and many analysts project continued price growth throughout 2024.
On the other hand, cryptocurrencies on the middle curve are a bit more volatile but still relatively safe as far as cryptos go, while those on the left curve have the highest volatility risk but could lead to massive returns if they take off.
Featured image from StormGain, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
In a recent YouTube video, Michaël van de Poppe, a highly respected figure in the crypto analysis sphere, disclosed his top 5 altcoin picks for 2024. Van de Poppe, known as founder of Eight Global, emphasized the importance of a balanced approach over speculative bets on lesser-known altcoins. He stated, “I don’t believe in getting into very small altcoins to maximize the risk. Compounding your returns with a proper strategy benefits in the long run.”
Ethereum (ETH) – The Primary Crypto Choice
Van de Poppe’s foremost recommendation is Ethereum. The crypto analyst rationalizes this choice by pointing out the crowded space Bitcoin currently occupies, suggesting a shift of focus to altcoins. He articulated, “Bitcoin has been seeing a lot of upside already [caused by the spot ETF hype] … it’s getting a little bit overcrowded and I think the upside is relatively capped.”
He added that Ethereum is currently bottoming out against Bitcoin. “I think that Ethereum is undervalued at this point because there is a deflationary system involved.” His belief in Ethereum stems from its fundamental growth and the deflationary aspect of its economic model.
With regards to the 3-day ETH/USDT chart, he commented: “Ethereum holds a crucial level at $2,150 and is ready to continue the upwards path. Likely, we’ve bottomed on the ETH/BTC pair and have peaked on the Bitcoin dominance.”
Delving deeper into the Ethereum ecosystem, van de Poppe highlighted the importance of scalability solutions. He sees Arbitrum as an attractive crypto investment, especially given its current stage and potential for growth.
“Arbitrum has not much price action yet, which is tricky, but can give you a very interesting investment thesis,” he explained, underscoring its upward trend against Bitcoin. “Retest at $0.98 did work, continuation towards $1.35 as well and even further. Some beautiful S/R flips, I think $1.40-1.45 should hold and we can continue to $2,” he stated.
Optimism is his second scalability solution choice, albeit with a cautionary note on its recent substantial run. Van de Poppe recommends a dollar-cost averaging strategy for Optimism, noting “the hype is already substantial here… buying a portion on every 10 cents that’s dropping to make sure that you get a nice average entry.”
Chainlink (LINK) – The Dark Horse
Chainlink (LINK) emerged as his fourth pick. Van de Poppe sees its prolonged bear market and early peak against Bitcoin in 2020 as indicators of significant potential, especially in conjunction with DeFi, RWA, and NFTs. “Chainlink… has been going into the longest bear market that it existed… cycles will happen, and that’s why the opportunity costs are big,” the crypto analyst remarked.
“Chainlink shows that the markets are looking for a higher low on the BTC pairs. Bitcoin pairs show strength in altcoins and are a key indicator in bull markets. As long as LINK stays above 0.000253 BTC, it’s fine and we can start targeting 0.006 BTC,” van de Poppe noted.
LINK/BTC, 1-week chart analysis | Source: X @CryptoMichNL
SUI – The New Competitor
The final altcoin in van de Poppe’s selection is SUI, a newer project he compares to successful platforms like Phantom, Avalanche, and Matic. He advises on investing in Ethereum competitors, asserting, “The final one that I am going to explain here is SUI, which is currently also starting to trend upwards. I’m not sure what it is going to hold though, but outside of the Ethereum ecosystem and DeFi corner.”
He added, “I want to be investing into competitors of Ethereum and you can choose SUI, DOT, ATOM, all those projects. I would like to choose something that’s relatively new, SUI.”
Looking at the 1-day chart of SUI/BTC, the crypto analyst stated: “The ecosystems are heating up, and SUI is waking up alongside ARB and OP. Looking for the BTC pair here, which is ready to do a beautiful retest at the 0.00001710 area. If that holds, an uptrend likely starts to 0.00003000 BTC.”
SUI/BTC, 1-day analysis | Source: X @CryptoMichNL
Crypto Portfolio Distribution And Strategy
Van de Poppe suggests a balanced portfolio distribution, advocating for a larger allocation to more established coins: 40% in Ethereum, 20% in Chainlink, and smaller portions in Arbitrum and Optimism (each 15%) as well as SUI (10%). He also emphasized the need for a dynamic approach to trading and profit-taking, saying, “Trading is a lot about being flexible and having a flexible mindset.”
Featured image from BoliviaInteligente / Unsplash, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Crypto Rand, a renowned crypto trader, has shared insights on the current market corrections, emphasizing the necessity of these corrections for sustainable market ‘growth.’
The trader, who disseminates his views on X, stresses that despite the evident pullbacks, the crypto market’s macrostructure remains “intact.”
This perspective comes at a time when most crypto assets, including Bitcoin, have experienced significant price drops over the past couple of days.
Navigating Resistance Levels: The Path To Growth
Crypto Rand’s leveraged the price action index of various cryptocurrencies, such as Cosmos (ATOM), Chainlink (LINK), NEAR Protocol (NEAR), Algorand (ALGO), and MultiversX (EGLD), among others to highlight his point.
Rand identifies multiple resistance levels in these assets’ trajectories, suggesting these as potential points for market turnaround. These resistance levels are categorized as major or minor, depending on the frequency and intensity of price actions historically observed at these points.
Despite the temporary pullbacks that these resistance levels might introduce, Crypto Rand views them as necessary pauses that allow the market to gather strength for future upward movements.
This perspective is particularly relevant in light of Bitcoin’s recent price behavior. The flagship cryptocurrency has seen a notable dip from its recent high of $44,000, currently trading just below $42,000.
Bitcoin (BTC) price is moving sideways on the 1-hour chart. Source: BTC/USDT on TradingView.com
This downward trend has echoed across the crypto market, impacting other major assets like Ethereum including altcoins Rand mentioned like Chainlink, and Algorand.
Over the past 7 days, BTC and ETH have experienced declines of 4.4% and 2%, respectively. Meanwhile, Chainlink has seen a 6.9% drop during the same period, and Algorand has fallen by 4.1% in just the past 24 hours.
Always be ready for more shakeouts, but remember, these corrections are needed for healthy growth.
The Mid Caps for example got rejected on the main resistance, but overall macrostructure remains in tact.
The Broader Perspective On Crypto Market Corrections
The sentiment that market corrections are a healthy and necessary aspect of growth is not exclusive to Crypto Rand. William Clemente, the co-founder of Reflexivity Research, echoes this viewpoint.
Clemente posits that the current market retraction, which could potentially bring Bitcoin’s price closer to $40,000, should “not be a cause for alarm.”
Clemente argues that this process is crucial for eliminating weaker market participants and reducing excess leverage, ultimately establishing a firmer foundation for future upward trends.
Clemente further articulates that the inherent volatility of Bitcoin should be perceived as “a feature, not a bug”. It is worth noting that this stance reinforces the notion that the crypto market is still evolving and that such fluctuations are part and parcel of its journey towards maturity.
BTC just ~doubled in 2 months with no pull backs, a correction is not that surprising.
Corrections shake out “weak hands” and leverage, allowing for a stronger foundation for eventual moves higher.
Featured image from iStock, Chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Injective Protocol’s INJ token has just hit a new all-time high of $27.02. However, it appears that the market is currently in a phase of rest and consolidation, with investors cautiously hopeful yet reluctant to drive prices much higher at the moment.
The overall trading activity has decreased from its recent peak, leading to a reduction in market volatility. Despite this, the price of INJ has experienced a 12% increase in the last day, currently trading at $25.
Injective Inks 50% Price Rally
One of the things to consider as the token searches for more growth is what has propelled it to a record high. So, is there a chance that this rally will last, or will bears ruin the bulls’ Yuletide celebration?
Injective’s native token has experienced a price explosion of over 50% in the previous 30 days, and the steady climb since the lows hit in December 2022 has featured a parabolic rise of over 1,500%. Positive news about the ecosystem and the general bullish mood have driven INJ higher in recent weeks.
Just the last day saw a 40% spike in INJ’s trading volume to $508 million. The price of INJ has fluctuated by around 15% during the last day, indicating high intraday volatility as well. Traders need to get ready for further volatility in the near future.
Now that Injective has a new ATH set, it is in unexplored terrain and might rise swiftly.
INJ currently has a market cap of $2.07 billion. Source: TradingView.com
In the event of a decline, the nearest area of support is at $24, and then $20, which corresponds to the Fibonacci 0.382 retracement level. Just below that, at $16 and $15, respectively, you can find support at the 0.5 and 0.618 Fib levels. If INJ’s rally hits a wall, the stock might retrace to these levels before continuing its ascent.
INJ’s $65K Burn Boosts Weekly Surge
Injective’s weekly token burn has been one of the major triggers for the previous few days. The most recent of these saw the burning of over $65,000 worth of INJ, eliminating them from circulation forever.
Injective saw a notable increase in the total amount of INJ staked during the burn auction. There have been almost $1 billion worth of tokens staked thus far, based on on-chain data.
A bullish continuation might see buyers target prices above $30. A bearish turn in tandem with a wider market decline may signal a possible decline to $20–$18 range support.
Meanwhile, the current Coincodex Injective price prediction indicates a $27.50 price increase this week. Additionally, according to its technical indicators, the present mood is bullish, and the Fear & Greed Index is currently reading 67 (Greed).
The predicted annual low price for Injective in 2024 is $ 25.13, based on how the price has changed in the past and the BTC halving cycles. Injective, on the other hand, could cost as much as $35.49 next year.
Featured image from Warne Scope Mounts
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
After rising sharply from the $2.00 bottom, Helium (HNT) demonstrated a strong upswing that further fueled the market’s positive attitude and increased the momentum of the advance.
This week has witnessed bull action for the Solana-based Helium Network’s HNT coin, which has seen a 70% weekly rise to $4.86.
Based on the most recent data, HNT, which has a market cap of about $700 million and an amazing $10 billion in trading volume as of press time, quietly touched a yearly high of $5.12 over the weekend after seeing a commanding 85% price spike in only seven days.
Buyers demonstrated an upswing and were able to keep the price above both EMAs. The 200-day EMA, which shows strength in the most recent bull run, is about to cross paths with the 50-day EMA for helium. In the event that the crossing takes place, prices may reach new swing highs.
The price of helium has been more volatile this week due to a divergence in the Bollinger Bands. Indicating bull domination throughout the course of the week on the price of helium, HNT’s relative strength indicator is above its average line in the overbought area.
HNT price prediction for December. Source: Coincodex.
HNT was up from $2.73 to $5.78 in the first week of December, signifying a 70% increase in price. Just this past month, the token has increased by over 190%.
The most recent estimate for the price of Helium is that it may reach $5.75 this month, according to Coincodex.
For a network that has primarily dealt with bad press regarding its product and the transition from its proprietary blockchain to Solana, this price performance marks a turnaround.
In the cryptocurrency market, Helium, a decentralized network that launched in 2019, has made significant progress. It is now among the best performers. Concurrent with this price increase is Solana (SOL), which has risen by over 50% over the past 30 days.
On November 12, 2021, HNT reached its highest point at $55.15. On the other hand, it fell to an all-time low of $0.200 on May 29, 2020.
The lowest recorded price since the all-time high was $1.16, and the highest was $5.75. The Fear & Greed Index shows a score of 72 (Greed), and the current consensus for Helium’s price prediction is positive.
Meanwhile, analysts say the $20 monthly phone plan from Helium Mobile, which gives customers unlimited data, voice, and text, is mostly the impetus for HNT’s price increase.
According to a recent survey, the average American spends about $150 a month on phone plans alone. Helium’s newest connectivity service is expected to provide a more affordable option than traditional service providers.
Featured image from Pixabay
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
According to research by Bybit, institutional traders have expressed a significant bullish sentiment towards Bitcoin, mixed sentiments regarding Ether, and a general air of skepticism towards altcoins.
From December 2022 to September 2023, the study provides an insightful look into trading behaviors and asset allocation amidst significant market fluctuations.
Institutional Traders Favor BTC, Moving Away from Alts
The study reveals a significant shift in the institutional traders’ approach to major cryptocurrencies. Bitcoin holdings among this group saw a substantial increase, doubling in the first three quarters of 2023.
September marked a turning point, with half of institutional traders’ portfolios allocated to Bitcoin. This aligns with the positive market sentiment towards the primary crypto, fueled by expectations of regulatory advancements and the potential approval of a Bitcoin ETF.
In contrast, Ether’s appeal has reduced post-Shapella in April, with a decreased holding percentage across most traders. However, a surprising surge in Ether holdings by institutional traders was noted in September, suggesting a broader upbeat sentiment towards cryptocurrencies.
Stablecoins presented a different picture. Retail traders consistently preferred them, particularly in uncertain market conditions. On the other hand, institutional traders displayed a strategic shift, reducing stablecoin holdings in bear markets, possibly indicating adept market timing.
This contrast became more apparent in September, as institutional traders significantly reduced their stablecoin holdings, coinciding with an increase in Bitcoin and Ether investments.
Altcoins, however, did not find favor with institutional traders. The interest in these alternative tokens has been consistently low, with a brief spike observed in May 2023. This trend indicates a clear preference among institutional traders for more established cryptocurrencies.
UTA’s Role in Enhancing Market Adaptability
Bybit’s research states that the United Trading Account (UTA) offers a solution for navigating market volatility, allowing flexible leverage adjustments according to market conditions.
The research highlights the effectiveness of UTA in managing asset allocation amidst fluctuating markets, potentially preventing unnecessary liquidations during high volatility periods.
The Bybit study focused on active users, specifically those who conducted more than 20 monthly trades. It analyzed critical periods in bullish (January, March, April, and June 2023) and bearish markets (December 2022, May, and August 2023).
The research explored the trading behavior of users across different asset classes, meticulously examining institutional traders (INS), VIP traders with assets exceeding $50K, and retail traders.
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Recent patterns indicate that the impetus fueling Ethereum’s climb is far from diminishing, and the price trajectory of the cryptocurrency has shown resilience. Ethereum may not be as advanced as some of its L1 competitors, but it stands out from the crowd thanks to its large developer community, immense acceptance, and crucial role in DeFi and other blockchain-based applications.
Ethereum Remains Firm At $2,347
At the time of writing, ETH was able to keep a strong footing at the $2,300 level, trading at $2,347, nearly unchanged in the last 24 hours, but tallied a 10% increase in the last seven days, data from Coingecko shows.
There is still a lot of room for profit in the current bull market, even though Ethereum’s price spike hasn’t been as dramatic as other altcoin’s. Size, liquidity, and being the leading platform for smart contracts all contribute to Ethereum’s continued appeal as an investment.
Ethereum currently trading at $2,341.6 territory. Chart: TradingView.com
This means that ETH’s price performance could be greatly enhanced by any further market increases. Ethereum, according to technical research, is about to see growth, and it is now testing key resistance levels. Both retail and institutional investors would be interested if the price breaks out above these levels, as it could indicate that the positive trend would continue.
🐳 #Ethereum has scratched its way to $2,349, its highest level since June, 2022. The long-term trend of top non-exchange whale wallets getting richer, and top exchange whale wallets having less sell-off power, is a promising combo for a continued climb. https://t.co/h7ogbqPLWfpic.twitter.com/82plXmVn02
For the first time in more than a year, Ethereum’s price has moved into a new range. The accumulation patterns seen in several top addresses indicate that this new range has created a chance for persistent price increases.
Ethereum’s Growing Holdings And 2024 Roadmap
The most popular Ethereum addresses on exchanges and those outside of them have shown clear patterns of accumulation in the last several months, according to new data from Santiment.
A large number of top non-exchange addresses have been buying Ethereum at different prices, which has caused their holding volume of ETH to rise steadily and now surpass 54 million.
At the same time, following their most recent execution layer meeting on December 8, Ethereum developers have laid out a detailed strategy for the network’s future in 2024, including new suggestions, major upgrades, and more.
Meanwhile, Ethereum is predicted to significantly outpace mega-cap tech stocks. After the Bitcoin miners’ payouts are halved, investment firm VanEck thinks Ethereum will soar. In the past, this has caused a fresh spike in the price of Bitcoin, with the proceeds going into altcoins.
Ethereum won’t surpass Bitcoin, despite surpassing large stocks, and what “flippening” rumors claim. It is still believed that Bitcoin will continue to lead in market capitalization even though there is a chance that ETH may gain value in daily transaction volume.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
In addition to its price hitting a 19-month high, Bitcoin dominance also hit local highs, topping 54%. However, a minor retreat in the metric and a potential BTC correction could be good news for altcoins.
On Dec. 4, crypto trader Jacob Canfield commented on the dominance decline and potential for altcoin moves.
“I’m liking this Bitcoin dominance 4-hour rejection at prior resistance. This could mean a nice couple days of big altcoin moves.”
BTC prices have surged almost 14% over the past week, but altcoins have not really followed.
I’m liking this Bitcoin dominance 4 hour rejection at prior resistance.
This could mean a nice couple days of big altcoins moves.
Play the strong movers on low time frame pull backs.
If you read my tweet from this morning, a lot of them have found strong bounces off their… pic.twitter.com/J3taCVsq3z
Another chart that many analysts are sharing is the total market capitalization minus BTC. This shows all other crypto assets, including stablecoins, and it remains in the accumulation zone.
Trader and investor “EliZ” shared this chart, noting that it was approaching resistance and on the verge of a breakout.
you haven’t seen anything yet…if this breaks higher…the real fun begins
On Dec. 4, analyst “Income Sharks” commented on the same chart:
“Missing out on a 9% move on Bitcoin won’t sting as much when some ALTS and Microcaps make a 900% move.”
Moreover, many of the high-cap altcoins are still way down from their peaks. Ripple, Cardano, Dogecoin, Avalanche, and Polkadot are all more than 80% down from their all-time highs. Solana, Chainlink, and Polygon are still more than 70% down despite recent gains.
Bitcoiner Jimmy Song compared altcoin prices to the last time BTC was above $40,000, which was in May 2022.
Most of them were much higher than today’s levels, but the bear market was intensifying at the time, and it was just before the Terra/Luna collapse, so it was not the best of comparisons.
Check out what it looked like when BTC was last above $40k vs now.
Crypto markets have remained flat on the day, with total capitalization pausing at $1.61 trillion. Bitcoin has reached resistance and was trading at $41,709 at the time of writing.
However, nearly all of the leading altcoins were in the red again, with 2-4% declines. There were larger losses for Solana, Chainlink, Polygon, and THORChain.
Bitcoin smart contract protocol Stacks (STX) were bucking the trend, surging 33% on the day.
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Altcoins, or alternative cryptocurrencies, have become a buzzword in the digital currency landscape, offering a world beyond Bitcoin (BTC). This guide explores the essence of altcoins, answering the pivotal question: What are altcoins? From the historical rise of altcoins to the exciting phenomenon of altcoin season, we delve into the intricacies that define this dynamic market.
What Are Altcoins? Understanding The Basics
Altcoins, short for “alternative coins,” encompass a diverse range of cryptocurrencies that have emerged following the success of Bitcoin. They are not simply imitations of Bitcoin but represent a broad spectrum of digital currencies with unique attributes, purposes, and technological innovations.
Characteristics Of Altcoins
Each altcoin is distinguished by its unique blockchain technology and consensus mechanism. For instance, Ethereum, one of the most prominent altcoins, utilizes a Proof-of-Stake (PoS) consensus mechanism, which is less energy-intensive compared to Bitcoin’s Proof-of-Work (PoW) system.
XRP operates on a consensus protocol known as the Ripple Protocol Consensus Algorithm, designed for high-speed and energy-efficient transactions. Cardano employs the Ouroboros PoS algorithm, acclaimed for its security and scalability. These varying consensus mechanisms reflect the diverse goals and technological advancements of altcoins, ranging from enhancing transaction efficiency to ensuring greater security and sustainability.
Altcoins also vary significantly in their market capitalization, liquidity, community support, and real-world applications. For example, Litecoin, often referred to as the silver to Bitcoin’s gold, offers faster transaction confirmation times, making it suitable for smaller, everyday transactions. Meanwhile, Binance Coin (BNB) is intricately linked to the Binance exchange ecosystem, providing utility within that specific platform.
Differences Between Altcoins And Bitcoin
One of the stark contrasts between Bitcoin and many altcoins is their development and governance structure. Bitcoin, created by the pseudonymous Satoshi Nakamoto, who has since left the project in December 2010, operates in a decentralized and open-source manner without a central authority.
In contrast, many altcoins have identifiable founding teams or organizations overseeing their development. For example, Ethereum is backed by the Ethereum Foundation, Solana is developed by Solana Labs, and Cardano is spearheaded by IOG (Input Output Global).
Another key difference lies in their transaction speeds and capabilities. Bitcoin, primarily designed as a digital store of value and medium of exchange, processes transactions approximately every 10 minutes. In contrast, altcoins like Ripple’s XRP have a much-shorter block time and can process transactions in seconds, making it a preferred choice for cross-border money transfers. Ethereum, with its smart contract functionality, enables a wide range of decentralized applications (dapps) beyond simple monetary transactions.
Furthermore, while Bitcoin’s maximum supply is capped at 21 million coins, altcoins have varied approaches to supply. For example, Ethereum initially had no cap. With the introduction of EIP-1559, Ethereum developers have introduced a mechanism that burns a portion of the supply with each transaction, potentially making its supply deflationary over time. XRP – like many other altcoins – was premined and has a capped total supply of 100 billion XRP.
The Rise Of Altcoins: A History
The history of altcoins is a captivating narrative of innovation, market dynamics, and the continuous pursuit of refining digital currency technology. Since the inception of Bitcoin, the first decentralized cryptocurrency, there has been a surge in the creation of alternative cryptocurrencies, each seeking to address perceived limitations of Bitcoin or to introduce new features and use cases.
The First Altcoins Gaining Traction
The journey of altcoins began soon after the establishment of Bitcoin, with the creation of Namecoin in April 2011. Namecoin aimed to decentralize domain-name registration, making internet censorship more difficult. Following Namecoin, Litecoin was launched in October 2011, envisioned as the “silver” to Bitcoin’s “gold.” Litecoin offered faster transaction confirmation times and a different hashing algorithm (Scrypt).
Following these, another notable early altcoin included Peercoin, introduced in 2012, which was the first to implement a Proof-of-Stake/Proof-of-Work hybrid system. Another significant early player was XRP which was created in 2012. The XRP Ledger was launched in June 2012 by the founders of Ripple Labs, including Chris Larsen and Jed McCaleb. Shortly after that, Dogecoin was launched in December 2013, initially created as a light-hearted take on cryptocurrency.
Dogecoin | Image credit: iStock
Remarkably, not all early altcoins sustained their momentum. Many, like Feathercoin and Terracoin, which gained attention initially, saw their influence wane over the years. These coins, while innovative in their time, couldn’t keep up with the rapidly evolving cryptocurrency market or build a lasting community and development ecosystem.
Evolution Of The Altcoin Market
The altcoin market has evolved significantly over the years, expanding beyond simple variations of Bitcoin’s technology. The introduction of Ethereum in 2015 was a watershed moment. Ethereum’s innovation was not just in creating a new cryptocurrency but in introducing a platform for decentralized applications (dApps) through smart contracts.
This breakthrough opened the doors for a new era of blockchain technology, where altcoins could serve various purposes beyond mere currency, from powering decentralized finance (DeFi) to non-fungible tokens (NFTs). The market saw an influx of diverse altcoins based on Ethereum, each catering to specific niches and use cases.
Key Milestones In Altcoin History
Several key milestones mark the history of altcoins. The Initial Coin Offering (ICO) boom in 2017 was one such significant event. ICOs became a popular method for new cryptocurrency projects to raise funds, leading to the launch of thousands of new altcoins. However, this period also saw increased regulatory scrutiny and instances of fraud, leading to a more cautious market approach.
Another major development was the rise of DeFi in 2020, where altcoins played a central role in enabling decentralized lending, borrowing, and trading, independent of traditional financial institutions. This era also witnessed the surge in popularity of NFTs, with altcoins like Ethereum being at the forefront of this new digital asset class. These milestones highlight the dynamic nature of the altcoin market, continuously shaped by technological advancements and shifting market sentiments.
Top Altcoins To Watch
As the crypto market continues to evolve, a number of altcoins have risen to prominence, each offering unique advantages and innovations. This section highlights some of the top altcoins that have captured the market’s attention due to their technological advancements, community support, and potential for future growth.
Top altcoins | Image credit: Shutterstock
Overview of Top Altcoins
Ethereum (ETH): Often regarded as the leading altcoin, Ethereum is renowned for its smart contract functionality, which has paved the way for decentralized applications (dApps) and decentralized finance (DeFi) ecosystems.
Solana (SOL): Solana has gained popularity for its incredibly fast and low-cost transactions, leveraging a unique combination of proof-of-history (PoH) and proof-of-stake (PoS) consensus mechanisms.
XRP: Despite legal challenges in the United States, Ripple has established itself and the XRP token as a significant player, primarily for its use in fast and efficient cross-border money transfers.
Binance Coin (BNB): Originally created as a utility token for the Binance cryptocurrency exchange, BNB has expanded its use cases to include transaction fee discounts, token sales, and more within the Binance ecosystem.
Cardano (ADA): Known for its strong focus on sustainability and scientific philosophy, Cardano offers a third-generation blockchain that promises more scalability and security through its unique Ouroboros proof-of-stake algorithm.
Polkadot (DOT): Polkadot stands out for its interoperability, enabling different blockchains to transfer messages and value in a trust-free fashion; it’s also scalable and customizable.
These are just a few examples of the numerous altcoins in the market, each contributing to the diverse landscape of cryptocurrency in their unique ways.
Features That Make Altcoins Stand Out
Altcoins distinguish themselves through various features that cater to specific needs and use cases:
Smart Contract Capabilities: Ethereum’s introduction of smart contracts revolutionized the blockchain space, enabling the creation of complex, programmable transactions and applications.
Scalability And Speed: Altcoins like Solana and Cardano have focused on solving scalability issues, offering faster transaction speeds and lower fees compared to older blockchain networks like Bitcoin and Ethereum.
Interoperability: Projects like Polkadot and Cosmos address the issue of blockchain interoperability, allowing different networks to communicate and exchange information seamlessly.
Niche Applications: Some altcoins target specific sectors or use cases, such as Chainlink’s focus on providing real-world data to blockchain networks through oracles, or Monero’s emphasis on privacy and anonymity.
What Is Altcoin Season?
Altcoin season or “altseason” is a term that describes a period in the crypto market when altcoins significantly outperform Bitcoin. It’s a phase where investors’ appetite for riskier assets grows, and capital flows from Bitcoin into altcoins, often resulting in substantial price surges for these alternative coins. Understanding when an altcoin season is on the horizon can be crucial for cryptocurrency traders and investors looking to capitalize on market trends.
Indicators Of An Upcoming Altcoin Season
A key indicator of an impending altcoin season can be the Bitcoin Dominance (BTC.D) chart, which tracks the percentage of the total cryptocurrency market capitalization contributed by Bitcoin. Technical analysts scrutinize this chart for signs of decreasing dominance, which may suggest that altcoins are starting to take up a larger share of the market.
Support and resistance levels on this chart can indicate potential shifts in market dynamics. For instance, a sustained fall below a major support level could signal the beginning of altcoin season.
Remarkably, the market often moves in cycles which can be broken down into four distinct phases, as illustrated in the image provided by crypto analyst Ted (@tedtalksmacro):
Phase 1: Bitcoin – The cycle often starts with Bitcoin’s price surging as money flows into Bitcoin, causing significant price increases.
Phase 2: Ethereum – Money begins to flow into Ethereum, which might struggle to keep up initially but then starts to outperform Bitcoin, leading to discussions about ‘the flippening’ (where Ethereum’s market cap could surpass Bitcoin’s).
Phase 3: Large Caps – As Ethereum starts outperforming Bitcoin, investors begin to venture into large-cap altcoins, which then start to see large buy-ups and price increases.
Phase 4: “Altseason” – In this final phase, enthusiasm spreads across the market; large caps have gone full vertical, and attention turns to mid and small-cap altcoins. All categories, regardless of fundamentals, tend to pump around the same time, leading to a parabolic increase in altcoin prices. This phase is marked by high levels of excitement and media attention.
Altcoin Season | Source: X @tedtalksmacro
How to Buy Altcoins: A Step-by-Step Guide
Purchasing altcoins can seem daunting for newcomers to the cryptocurrency space, but by following a clear step-by-step process, it can be straightforward and secure. Here’s a simplified guide to help you through the process: Research: Before anything else, conduct thorough research to determine which altcoins align with your investment goals and risk tolerance.
Choose A Wallet: Select a digital wallet that supports the altcoin you wish to purchase. Wallets can be software-based (like mobile or desktop applications) or hardware-based for added security.
Select A Cryptocurrency Exchange: Choose an altcoin exchange that lists the altcoin you’re interested in and is known for its reliability, security, and ease of use.
Register And Secure Your Account: Create an account on the chosen exchange and set up strong authentication measures, including two-factor authentication (2FA).
Fund Your Account: Deposit funds into your exchange account. This can often be done via bank transfer, credit card, or by depositing other cryptocurrencies.
Place An Order: Navigate to the market or trading pair for your chosen altcoin and place a buy order. You can opt for a market order for an immediate purchase at current prices or a limit order to specify a price at which you’re willing to buy.
Store Your Altcoins Securely: After the purchase, transfer your altcoins to your personal wallet for safekeeping, especially if you’re planning on holding them for the long term.
Where to Buy Altcoins
You can purchase altcoins on a variety of platforms, each offering its own set of features, fees, and security measures. Here are some of the most common places where you can buy altcoins:
Centralized Exchanges: These are the most common platforms for buying altcoins and include well-known exchanges like Binance, Coinbase, and Kraken. They offer a wide range of altcoins and are typically user-friendly.
Decentralized Exchanges (DEXs): DEXs like Uniswap and SushiSwap allow for peer-to-peer transactions without the need for an intermediary. They offer a higher degree of privacy and direct wallet-to-wallet trades.
Cryptocurrency Brokers: Platforms like eToro and Robinhood act as brokers, offering an easy entry point for buying cryptocurrencies. However, they may have a more limited selection of altcoins compared to dedicated exchanges.
Peer-to-Peer (P2P) Platforms: Websites like OKX P2P or Remitano connect buyers and sellers directly. While they offer flexibility in payment methods, they require a higher degree of trust between parties.
When choosing where to buy altcoins, consider factors such as security, fees, the variety of available altcoins, and the user experience of the platform. Always ensure that the platform you choose complies with the regulatory standards in your jurisdiction.
Are Altcoins A Good Investment?
The question of whether altcoins are a good investment depends on various factors, including market conditions, the specific altcoin’s potential for growth, and the investor’s risk tolerance and investment strategy.
Pros Of Investing In Altcoins:
High Growth Potential: Some altcoins have shown the capacity for high returns on investment, outperforming traditional assets in their best periods.
Diversification: Altcoins can diversify an investment portfolio, potentially reducing risk by spreading exposure across different asset classes.
Innovation: Investing in altcoins can be a way to support and be part of innovative blockchain projects that may transform various industries.
Cons Of Investing In Altcoins:
Volatility: Altcoins can be highly volatile, with the potential for significant price swings that can lead to substantial gains or losses.
Market Maturity: Compared to more established markets, the cryptocurrency market is relatively young and can be unpredictable.
Regulatory Uncertainty: Altcoins face regulatory challenges that can impact their value and legality. Investors considering altcoins should conduct thorough research, understand the risks involved, and consider speaking with a financial advisor. Investment decisions should be based on an individual’s financial situation, investment objectives, and risk tolerance.
Are Altcoins Dead Or Thriving?
The altcoin market is a diverse ecosystem with a wide range of projects boasting various levels of innovation, utility, and community support. Similar to the early days of the internet which led to the Dot-Com bubble, the cryptocurrency space is experiencing its own form of natural selection where not all projects will survive in the long term.
The Reality Of Altcoin Longevity:
Oversaturation: The market has seen an explosion of altcoins, with thousands currently in existence. Many of these coins serve similar functions or aim to solve the same problems, leading to an oversaturated market where only the strongest or most unique can survive.
User And Company Adoption: For an altcoin to thrive, it must gain widespread adoption among users and businesses. However, with so many options available, not every altcoin will achieve the necessary adoption rate to sustain its network.
Innovation And Continuous Development: The technology underlying altcoins is rapidly evolving. Projects that fail to innovate or adapt to new advancements are likely to fall behind and eventually become obsolete.
Survival Of The Fittest:
The ‘Amazon’ Of Altcoins: There will be altcoins that manage to carve out a niche for themselves and become integral to the crypto economy, much like Amazon did for e-commerce. These projects typically have strong fundamentals, clear use cases, active development teams, and robust community support.
The ‘Pets.com’ Of Altcoins: Conversely, some altcoins will fade into obscurity, similar to the fate of Pets.com and other failed Dot-Com ventures. Reasons for this include poor management, lack of clear use cases, failure to deliver on promises, or simply the inability to compete with more successful projects.
Market Dynamics And Speculation:
Speculative Bubbles: The altcoin market is not immune to hype and speculation, which can lead to bubbles. Projects that rise rapidly on speculation rather than solid fundamentals are at risk of crashing just as quickly.
Regulatory Challenges: Authorities are still defining the regulatory landscape for cryptocurrencies. Altcoins that fall foul of future regulations or fail to navigate the complex legal environment may face challenges that could impede their growth or lead to their demise.
In conclusion, while the altcoin market as a whole shows signs of thriving, with continuous innovation and increasing integration into the broader financial system, it’s clear that not every altcoin will survive the test of time. Investors should be discerning, focusing on projects with solid fundamentals, active development, and real-world utility to identify those with the potential to succeed in the long term.
FAQ
What Are Altcoins?
Altcoins, short for “alternative coins,” are cryptocurrencies other than Bitcoin.
Who Is Altcoin Daily?
Twin brothers Aaron and Austin Arnold founded Altcoin Daily, a prominent cryptocurrency YouTube channel. With over 1.34 million followers, it covers daily updates on Bitcoin, altcoins, NFTs, and more.
What Is Altcoin Alert?
Altcoin Alert refers to a software and service that tracks and analyzes sentiment on a large scale in the cryptocurrency market. It predicts coin prices based on extensive data.
How Many Altcoins Are There?
The number of altcoins constantly changes with the creation of new ones and the obsolescence of others. As of the last known count, there are ten thousands of altcoins, each with its own value proposition and community, but also a lot of scam projects.
Are Altcoins Worth Investing In?
Altcoins can be worth investing in, but they carry their own sets of risks and potential rewards. Their worth as an investment will depend on individual risk tolerance, market research, and investment goals.
Can You Short Altcoins?
Yes, it is possible to short altcoins on many cryptocurrency exchanges. In short selling, an investor borrows a cryptocurrency and sells it on the market, anticipating a decrease in its price.
How Do Altcoins Work?
Altcoins work using blockchain technology, which is a decentralized ledger that records all transactions across a network of computers. Many alternative cryptocurrencies have different features and operate on various consensus mechanisms, such as Proof of Work, Proof of Stake, or others.
How Are Altcoins Created?
Creating altcoins often involves forking from an existing blockchain or developing a new blockchain and its underlying technology from scratch. The process includes designing the coin’s protocol, creating its blockchain, and launching it for public use.
What Is An Altcoin?
An altcoin is any cryptocurrency other than Bitcoin. The term “altcoin” encompasses a broad range of cryptocurrencies with various functions and underlying technologies.
Bitcoin is still the leading proof of work blockchain and has already made massive moves over the years, with countless millionaires at the same time. However, with the price of Bitcoin having moved so much already, the upside is fairly limited, especially for crypto investors who do not have ample buying power to make a Bitcoin investment worth their while.
In this vein, altcoins offer the best opportunity for smaller and retail investors to make the most money. But not just any altcoins; these coins also employ the proof of work mechanism, just like Bitcoin, making them a good choice, especially when they are newly launched.
QUBIC: A Proof Of Work Coin Like Bitcoin
The Qubic (QUBIC) coin is already making the rounds on social media platforms such as X (formerly Twitter) and with good reason. The blockchain uses a proof of work mechanism like Bitcoin. Led by IOTA co-founder Dominik Schiener, it has already garnered a reasonable following based on Schiener’s reputation.
The coin is still trading well below $0.1 which could make it a good buy in the long run. With a current circulating supply of 71.425 trillion, its current market cap is currently sitting at around $200 million. 16% of the total supply has reportedly been burned already.
Nexa (NEXA) Leads POW Altcoins
Next (NEXA) is another proof of work blockchain, but unlike Bitcoin, it uses the UTXO Layer. This means that Nexa is a proof of work blockchain that is also able to support native tokens and smart contracts. To mitigate the problem of scalability often encountered by the likes of Bitcoin and Ethereum, Nexa employs Signatures and UTXO lookups.
The Nexa token is currently trending below one cent with an around $35 million market cap at the time of writing. Given the kind of run that Kaspa (KAS) had even through a bear market, it puts in perspective the opportunity that lies with this token.
Firo (FIRO)
Firo (FIRO) is another proof of work coin that also holds a lot of promise among the altcoins that fall into this category. It rebranded from ZCoin and is a privacy-first coin, meaning it mixes two of the most sought-after attributes right now in the crypto market.
Its price is $1.87 with a fully diluted market cap of under $40 million. This makes it the coin on this list with the lowest fully diluted market cap. Its price has been relatively stable for the last week, which could suggest that accumulation is happening ahead of a possible breakout.
Data shows altcoins have been losing correlation with Bitcoin recently, and among them, XRP and BNB have seen particularly pronounced decoupling.
XRP & BNB Have Seen Largest Drops In 60-Day Correlation To Bitcoin
As pointed out by an analyst in a post on X, BTC has recently seen a drop in correlation with the altcoins. The “correlation” here refers to an indicator that keeps track of how tied the prices of any two assets are right now.
When the value of this metric is positive, it means that the given assets respond to moves in each other’s price by moving in the same direction. The closer the indicator’s value is to 100%, the stronger this correlation is.
On the other hand, negative values imply that there is a negative correlation between the assets, as their prices are moving opposite to each other. In this case, the extreme is -100%, so the more negative the value, the more tight the relationship is.
The 0% mark represents the point where no correlation exists between the prices, implying that movements in one have no bearing on how the other might perform.
Now, here is a chart that shows what the 60-day correlation between Bitcoin’s daily log returns and various altcoins looks like right now, as well as how it compared a year back:
Looks like XRP has seen the strongest decoupling out of these coins | Source: @CryptoBusy on X
As displayed in the above graph, the 60-day correlation between Bitcoin and XRP appears to have significantly decreased in this period, as it has plunged from nearly 80% to almost 40%. This means that XRP’s price has been moving much more independently of BTC during the past 60 days.
BNB (BNB), Avalanche (AVAX), and Solana (SOL) have also seen some decoupling from the original cryptocurrency. Still, these alts have seen the indicator decline by much less than XRP has observed.
Cardano (ADA) and Dogecoin (DOGE) are the altcoins that have observed the least amount of change. However, in the case of the memecoin the correlation was lesser than the other assets to begin with, so even with the small decoupling, its correlation level is still matching that of BNB.
Generally, correlation is something to watch for whenever an investor is trying to diversify their portfolio, as two assets with significant correlation wouldn’t provide much safety.
Thus, as XRP is currently the cryptocurrency least correlated with Bitcoin on this list, it might be a better diversification option than coins like Ethereum (ETH) or Polygon (MATIC), which have the 60-day value of the indicator at relatively high levels still.
XRP Price
Just a few days back, XRP had revisited the territory above the $0.63 mark, but it wasn’t long before it slipped again and went under the $0.60 level. Since this low, though, the cryptocurrency has seen some recovery, as it has now neared $0.61 once again.
Miles Deutscher, a crypto analyst, recently shared insights on altcoins that are catching his attention for the upcoming week. In a post on X, he starts by noting the market’s recent cool-off, suggesting this phase is creating new opportunities for savvy investors. Deutscher also emphasizes the importance of staying informed and ready to capitalize on these shifts.
Top Altcoins To Watch This Week
Injective (INJ)
According to Deutscher, Injective (INJ) is experiencing a lull in hype, but this should not undermine its strong performance throughout the year. He believes that if the bullish momentum continues, INJ could reach its local highs in the $19’s. “Monitoring closely, as it runs hard when it runs,” Deutscher states, highlighting the potential for rapid gains.
At press time, INJ was trading at $15.88 after being rejected at the 0.618 Fibonacci retracement level of $17.13.
Deutscher points out that PYTH is in an interesting position with attributes favored by the market: it’s a new, shiny coin with a low float and perpetual contracts. However, competition from other Solana tokens, like Jupiter and JITO, may temporarily divert attention. For those already holding PYTH, Deutscher advises to hold but not to add more unless the price drops.
SuperFarm (SUPER)
SUPER is part of the trending gaming narrative and has been gaining attention from significant creators and influencers. Despite its volatile funding, Deutscher sees potential for a FOMO-driven price increase. “It could be one of those ‘it’s already up too much, I’m not buying’ plays,” he speculates, suggesting that late buyers might drive the price even higher.
Cosmos (ATOM)
The recent approval of the ATOM Halving proposal is a significant development for Cosmos. This change will halve the maximum inflation rate from 20% to 10%, potentially impacting ATOM’s price action (PA). Deutscher is watching this closely for signs of a developing trend.
dYdX (DYDX)
The unlocking of $524 million worth of DYDX on November 28th is a crucial event, especially since these tokens will be released on the DYDX chain, not supported by centralized exchanges (CEXs). Deutscher anticipates a complex interplay of market psychology around this event. “Watching to see if the head and shoulders pattern continues to play out,” he comments, suggesting possible price movements following the unlock.
Solana (SOL) And BONK
SOL’s struggle to break past $58 is noted by Deutscher, placing it in a “no trade zone” for now. However, a breakthrough could lead to significant gains. BONK, a Solana-based meme coin, is also on his radar due to its higher volatility and correlation with Solana’s movements.
SOL price fell below the 0.382 Fib, 1-week chart | Source: SOLUSD on TradingView.com
Vertex (VRTX)
Finally, Deutscher highlights the significant volume increase on Vertex, surpassing DYDX and Uniswap. Despite suspicions of wash trading due to low open interest (OI) compared to volume, he sees potential in Vertex and perceives a resurgence in the popularity of perpetual decentralized exchanges (DEXs).
Featured image from iStock, chart from TradingView.com
Mags, a popular crypto analyst on the X (formerly Twitter) platform, has offered insight into the current landscape of the crypto assets class and its future prospects as the bull market seemingly approaches.
Altcoins To Go Parabolic Again?
In a post on X, Mags put forward a bold forecast for the altcoins market capitalization and expects the value of most cryptocurrencies to go parabolic in the coming years. The crypto analyst’s bullish argument revolves around the Moving Average Convergence/Divergence (MACD) indicator on the monthly timeframe of the altcoin chart. On the highlighted chart, the monthly MACD is on the verge of making a bullish cross.
From a historical standpoint, the crypto analyst cited that a similar bullish cross occurred on the Moving Average Convergence/Divergence indicator in 2020. Following this cross, the altcoins market cap skyrocketed by more than 2,000% from $85 billion to $1.73 trillion. If this MACD cross forms again, Mags expects a similar bull run for the altcoins market.
In what seemed like a more realistic stance, the crypto analyst postulated a surge to a $7 trillion market cap by 2025, even if the altcoins experience only half of the 2020 growth. This represents a roughly 1,000% rally from the current altcoin market cap of $637 billion.
According to data provided by CoinGecko, the total cryptocurrency market capitalization stands at $1.429 trillion, with Bitcoin maintaining its place as the largest cryptocurrency (market cap of more than 700 billion).
Bitcoin Reclaims Dominance In Crypto Market
According to a recent report by Santiment, Bitcoin seems to be back to dominating the altcoins after a good run in the past month. The on-chain analytics platform highlighted that most cryptocurrencies have been witnessing a price correction at the tail end of the week.
📊 #Bitcoin price dominance is finally back, at least for the time being. #Altcoins have been retracing on the tail end of the week after the past month’s blistering hot rally. If the crowd begins to get worried and show #FUD, however, we could see some quick price rebounds. pic.twitter.com/VAcKd27WIH
Many of the tokens in the altcoin class, including recent top performers like Solana, Cardano, and Avalanche, appear to be slowing down. Nevertheless, Santiment said that swift price rebounds could occur “if the crowd begins to get worried and show FUD (fear, uncertainty, and doubt).”
Cryptocurrency market cap excluding Bitcoin on the daily timeframe | Source: TOTAL2 chart on TradingView
Featured image from Shutterstock, chart from TradingView
With its latest break above the $74 barrier, Litecoin (LTC) is showing encouraging signs of a breakout into the bull market.
Increased transaction activity from miners and major investors in cryptocurrency is fueling expectations of an upward trend and suggests that a huge price spike is imminent.
At the time of writing, the price range for LTC is $61.50 to $74.50, up 3.5% in the last 24 hours, figures by crypto market price aggregator CoinGecko show. The crypto has so far been able to hold its ground and sustain a 37% increase in the last four months, data shows.
The 100-Day Moving Average, on the other hand, is currently at $67.40, while the 10-Day Moving Average is at $73.25. These indicators suggest that Litecoin is gaining pace, with resistance levels found at $80.11 and $93.05.
Litecoin hasn’t changed much in response to recent events in the crypto sector, even though it stands to gain directly. Companies like Blackrock, Invesco, Franklin Templeton, Ark Invest and Fidelity recently applied for a spot Bitcoin ETF.
Blackrock recently submitted a separate document for an Ethereum ETF. This indicates the prevailing confidence of the largest asset management firm globally in the potential approval of its Bitcoin ETF.
Litecoin has emerged as one of the most active blockchains in the industry, with a solid achievement of surpassing 1 million transactions on November 14th, marking the first time the proof-of-work (PoW) network has reached this milestone.
This surpasses the previous all-time high of 660,153 transactions recorded just a day earlier. Remarkably, Litecoin’s transaction activity over this two-day period has exceeded that of Bitcoin, highlighting a significant surge in LTC’s blockchain engagement.
LTC market cap currently at $5.4 billion on the 24-hour chart: TradingView.com
According to latest data, Litecoin has a strong daily trading volume that surpassed $612 million in the previous day. Like Bitcoin, Litecoin has shown to be resistant to manipulation.
Moreover, Litecoin continues to hold its position as a cryptocurrency with significant processing power for handling heavy transactions with a relatively consistent hash rate in recent months.
In the meantime, there are two very encouraging signs: the miners’ accumulation of LTC, which has reached reserves of over 2.5 million, and the spike in whale transactions, which peaked eight weeks ago.
But before the bulls can confidently shoot for $80 and higher, they must be able to breach the initial barrier at $78. A correction may begin if the price falls below $65; however, early support may come from the 406,590 holders who purchased 4.8 million LTC at approximately $67.
Source: Santiment
Meanwhile, the performance of the derivatives market presented a varied scenario. The Open Interest (OI) for Litecoin Futures on Binance exhibited a lateral movement, suggesting a decreased inclination among traders to speculate on the future price movements of the cryptocurrency.
Conversely, the Funding Rate on the exchange portrayed a positive trend, signifying the prevalence of long-position traders in the market. This divergence in market indicators reflects a nuanced sentiment among participants, with some exhibiting caution and a wait-and-see approach, while others express confidence in the upward trajectory of Litecoin.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
The altcoins market has recently witnessed a resurgence of interest and confidence, primarily driven by the largest cryptocurrency, Bitcoin (BTC). This renewed enthusiasm has resulted in a bull uptrend, with most of the top 100 cryptocurrencies benefiting from Bitcoin’s resurgence.
However, the market is currently experiencing a correction as Bitcoin and Ethereum (ETH) face pullbacks after failed attempts to breach upper resistance lines. Despite this correction, crypto analyst Miles Deutscher shares insights and highlights several altcoins with potentially significant gains.
SOL Emerges As Safe Haven In Crypto Market Correction
Solana has exhibited remarkable growth, even as the broader market experiences a correction. With a 0.5% gain in the past 24 hours, SOL’s potential for further upside cannot be ignored.
Deutscher suggests that SOL may continue to benefit from the ongoing rotation of investments from other Layer-1 solutions like Avalanche (AVAX) and Fantom (FTM).
Thorchain (RUNE) has been on an impressive upward trajectory, prompting investors to consider buying on deep corrections and wicks. The primary decentralized exchange (DEX) on Thorchain, THOR, has also shown positive movement, further bolstering the growth potential.
Polygon (MATIC) has recently shown signs of strength and has generated whispers within the crypto community about a potential zero-knowledge (ZK) narrative. If this narrative materializes, MATIC, a leader in the space, could attract significant positive flows.
Within the ZK narrative, altcoins like Dusk Network (DUSK), Loopring (LRC), and Mina Protocol (MINA) are poised to benefit. Deutscher believes that each altcoin offers unique strengths and value propositions, and their performance will depend on the strength of the emerging ZK narrative.
Soteria (SEI) has gained attention as it enters the top 10 for volume traded by pairs on Upbit. Considered a “new coin,” SEI exhibits fundamentals similar to the next altcoin on the watchlist.
Tidal Finance (TIA) is a relatively new token similar to the early days of Aptos (APT). The market tends to favor new and innovative tokens, and although TIA’s rally may have started to cool off, it still holds explosive potential. With a current market capitalization of $700 million, TIA remains an intriguing opportunity for investors.
DEX And Gaming Altcoins Poised To Thrive
In addition to altcoins, perp decentralized exchange (DEX) tokens like GMX, DYDX, and Gnosis (GNS) are positioned to benefit from market volatility.
According to Deutscher, these tokens have shown a correlation between price movements and fundamental factors. If volatility persists, these tokens could present favorable medium-term investment opportunities.
YGG’s significant 61% uptrend on the daily chart over the past 30 days. Source: YGGUSDT on TradingView.com
Yield Guild Games (YGG) and Gamestarter (GMT), gaming tokens with initial upward movements, are expected to continue outperforming the broader market. These gaming tokens could witness sustained growth with the YGG conference scheduled for November 18.
While the current correction in the cryptocurrency market has led to pullbacks in Bitcoin and Ethereum, the altcoin landscape still offers potential opportunities for investors.
Solana’s continued uptrend, along with the prospects of altcoins like Thorchain, Polygon, and those associated with the ZK narrative, suggest possible avenues for growth. Additionally, emerging tokens like Soteria and Tidal Finance, perp DEX tokens, and gaming tokens may also provide favorable investment prospects.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Shutterstock, chart from TradingView.com
In his latest essay, Arthur Hayes, the co-founder of BitMEX, has laid out his investment playbook in the current global economic landscape, focusing on the potential of Bitcoin, cryptocurrencies, big tech, and traditional financial markets.
Dumb Trades
Hayes begins with a blunt critique of traditional investment strategies, particularly the purchase of long-term bonds in the current economic climate. He explicitly states, “The dumbest thing one can do is purchase long-term bonds with a buy-and-hold mentality.”
Hayes explains this viewpoint by highlighting the risks associated with these bonds, especially when liquidity conditions shift, saying, “You will experience a market-to-market gain today, but…the market will start to discount the impact of further Reverse Repo [RRP] balance decreases and long-end bond yields will creep higher, which means prices fall.”
Moving on to smarter investment approaches, Hayes acknowledges leveraging short-term debt, as exemplified by Stan Druckenmiller. Hayes notes that Stan Druckenmiller went mega-long 2-year treasuries. He remarked, “Great trade, brah! Not everyone has the stomach for the best expressions of this trade (hint: it’s crypto). Therefore, if all you can trade are manipulated TradFi assets like government bonds and stocks, then this isn’t a bad option.”
Hayes also argues that a trade “that’s a bit better than the medium-smart trade (but still not the smartest) is to go long on big tech.” Hayes focuses on AI-related companies. He identifies AI as a pivotal future technology, arguing, “Everyone knows that everyone knows that AI is the future. This means anything AI-related will pump, because everyone is buying it too. Tech stocks are long-duration assets and will benefit from cash being trash once more.”
Smart Trades: Bitcoin And Crypto
However, the smartest trade is to go long crypto, which has significantly outperformed other assets relative to the increase in central bank balance sheets. Hayes presented the chart below, comparing the performance of Bitcoin, Nasdaq 100, S&P 500, and Gold against the Fed’s balance sheet since March 2020, highlighting Bitcoin’s exceptional growth.
Bitcoin (white), Nasdaq 100 (red), S&P 500 (green), and Gold (yellow) divided by the Fed’s balance sheet | Source: Arthur Hayes / Medium
Hayes identifies Bitcoin as the primary investment target, describing it as “money and only money.” Following Bitcoin, he points to Ether as the commodity powering the Ethereum network. “Ether is the commodity that powers the Ethereum network, which is the best internet computer.”
He categorizes other cryptocurrencies, stating, “Bitcoin and Ether are crypto’s reserve assets. Everything else is a shitcoin.” He further elaborates on alternative layer-one blockchains like Solana, calling them “all overhyped, me-too, pieces of shit that won’t overtake Ethereum in terms of active developers, dApp activity, or Total Value Locked.”
Hayes also discusses decentralized applications (dApps) and their tokens. He finds this sector exciting for its high-return potential, though he acknowledges the risks: “Finally, all manner of dApps and their respective tokens will pump. This is the most fun, because down here is where you get the 10,000x returns. Of course, you’re also more likely to get rugged, but where there is no risk there is no return. I love shitcoins, so don’t ever call me a maxi!”
Geo-Economic Factors
Regarding his investment strategy in the context of current economic fluctuations, Hayes explains his focus on the net of RRP minus Treasury General Account (TGA) to gauge market liquidity, which informs his decisions on T-bill sales and Bitcoin purchases. He emphasizes the importance of adaptability, stating, “I will stay nimble and flexible. The best-laid plans of mice and men have a tendency to falter.”
Hayes also delves into geopolitical considerations, specifically the potential impact of the Hamas v. Israel conflict on oil prices and monetary policy. He notes Bitcoin’s resilience in such scenarios: “Bitcoin has proven to outperform bonds during times of war. […] The long-term US Treasury bond ETF has fallen 12% vs. Bitcoin pumping 52% since the onset of the Ukraine / Russia war.”
While he concedes that Bitcoin could fall in an initial move when Iran is drawn into the Hamas v. Israel war, it would be a “buy the dip” situation according to Hayes.
In a candid conclusion, Hayes comments on the historical context of geopolitical conflicts, expressing skepticism about the prospects for global peace: “Of course, if those in charge of Pax Americana committed themselves to peace and global harmony… nah, I’m not even going to finish that thought. These mofos have been practicing war since 1776, with no signs of letting up.”
According to Hayes, however, all roads lead to Bitcoin: “[It] will reassert itself as a real-time scorecard on the health of the war-time fiat financial system.”
Solana is distinguishing itself in the crypto market, with a remarkable 50% monthly gain and an extraordinary 450% year-to-date increase, contributing to the overall surge in optimism.
This trend is further amplified by Bitcoin’s ascent beyond $37,000 and its ambitious aim to reach $40,000 by year-end. Solana’s standout performance adds a notable dimension to the current positive sentiment prevailing in the cryptocurrency space.
In an early morning rally, Solana broke the $50 barrier, marking its highest point since May 22, 2022. This exceptional performance underscores growing confidence in the crypto space, with Solana’s breakout signaling its prominence in the current market rally.
The huge increase in the price of SOL can be ascribed to the significant advancement of BlackRock’s application for an Ethereum exchange-traded fund (ETF). This observation signifies an increasing acknowledgment and approval of assets built on the Ethereum platform, which in turn contributes to the favorable trajectory of the overall cryptocurrency market and has a specific influence on the performance of Solana.
Solana: Navigating The FTX Liquidation Wave And Post-Conference Surge
In particular, this upsurge also transpired during the ongoing liquidation of SOL tokens by the bankruptcy estate of FTX. Just this September, the Delaware Bankruptcy Court granted approval for the disposal of the assets of the defunct exchange, comprising 55.75 million SOL.
Following its annual conference, Solana saw an impressive price spike that demonstrated its durability in the face of uncertainty surrounding FTX Group, a major SOL token holder that is currently experiencing financial turmoil.
SOL market cap at $22.7 billion on the weekend chart: TradingView.com
SOL’s increasing trajectory looks to favor FTX creditors notwithstanding FTX’s contradictory declarations regarding its investment. SOL’s current trading range may be able to recover the losses incurred by FTX exchange users, according to Thomas Braziel, CEO of 117 Partners.
The Founder of FTX Group, Sam Bankman-Fried, is facing legal action for allegedly embezzling client monies, which is why this is happening.
Solana Enjoys Sustained Upward Trajectory
Meanwhile, Jacob Canfield, a well-known figure in the realm of cryptocurrency trading, has provided an analysis elucidating his belief in the continued upward trajectory of the Solana price surge. Canfield expressed his belief that Solana is poised to maintain its position as one of the most influential entities in the ongoing bull market cycle.
In my opinion, I think that @Solana is going to continue to be one of the biggest movers during this current bull market cycle and I’m going to lay out some ideas for you.
It’s possible that with the Ethereum ETF news that some of these ideas don’t play out, but it’s worth… pic.twitter.com/oii8vWs0W9
In another development, the declining trend of Solana’s total value locked (TVL), reflecting the amount deposited in its smart contracts, has reversed after six consecutive weeks. In the last three days alone, Solana’s DApps deposits have experienced a 10% increase.
Although the current level of 11.1 million SOL remains below the pre-FTX exchange bankruptcy level of 30 million SOL, this recent upward trend indicates that the Solana network may have passed its worst period.
SOL TVL. Source: DefiLlama
In the upcoming days, the trajectory remains dynamic and uncertain as the intricate dance between bulls and bears unfolds. A substantial downturn could be in the cards for Solana if the bears persist, testing a critical support at $38.77 within the current month.
On the flip side, failure to sustain prices above $54.01 and a bearish takeover may lead to a loss of momentum, resulting in a descent to the $46.83 support level.
However, should the bulls maintain control and keep the price above $54.01, the market is positioned for a robust upswing, potentially challenging the $57.84 resistance. Furthermore, a breakthrough past the $60.06 mark could pave the way for a sustained rally towards the upper resistance of $65.08.
Will SOL Reach $60 This November?
As Solana breaks past the $54 mark, anticipation looms over whether SOL will surge to $60 within the current month. The recent momentum shift and positive trends in total value locked (TVL) and DApps deposits suggest an optimistic outlook for Solana.
Investors are closely monitoring the developments, eager to see if the cryptocurrency can maintain its upward trajectory. The coming days hold the key to whether Solana will achieve the $60 milestone, marking a significant chapter in its market performance.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Altcoins have managed to outshine the allure of Exchange-Traded Funds (ETFs) in recent months. The resurgence of risk appetite and the promise of double-digit yields are driving traders towards alternative digital assets.
ETFs are investment vehicles that allow investors to gain exposure to a diversified portfolio of assets, such as stocks, bonds, or commodities. They are traded on stock exchanges, making them accessible to a broad range of investors. In contrast, altcoins are a category of cryptocurrencies other than Bitcoin. Prominent examples include Solana, XRP, and Chainlink, each with its unique features and use cases.
In recent days, major altcoins like Solana, XRP, and Chainlink have experienced substantial double-digit gains, attracting traders seeking high returns. The enthusiasm for these digital assets has led to an increase in leverage, as analysts observe traders borrowing funds to amplify their investment positions.
Altcoins: Advances And Market Activity
The week has seen notable surges in the prices of several major altcoins. Solana, a blockchain platform known for its high-speed and low-cost transactions, has garnered significant attention. Alongside it, XRP, the digital currency associated with Ripple, and Chainlink, an oracle network, have also demonstrated remarkable price increases.
Investors have poured funds into Polygon and Cardano, as indicated by CoinShares data, showing an influx of $800,000 and $500,000, respectively, in the past week. Solana, in particular, has seen substantial net buying, with Coinbase leading the way. Data reveals that 2.2 million Solana tokens were market-purchased between October 18, coinciding with the start of the rally, and Nov. 6.
As the market breadth of the crypto rally improved and a probable end to the Federal Reserve’s rate-hiking cycle offered a more supportive environment for risky assets, investment advisory firm ByteTree hinted at the early innings of an “alt season” – a prolonged phase of the wider altcoin market outpacing Bitcoin’s price.
Total crypto market cap at $1.3 trillion on the 24-hour chart: TradingView.com
Bitcoin’s Enduring Appeal And ETF Enthusiasm
While altcoins enjoy renewed interest, Bitcoin remains a steadfast choice for investors. This enduring appeal is partly attributed to the recent dip in bond yields while still maintaining relatively high levels. Noelle Acheson, the author of the ‘Crypto is Macro Now’ newsletter, suggests that the sustained enthusiasm for ETFs contributes to Bitcoin’s continued attraction.
However, it’s important to exercise caution when it comes to ETF optimism. Craig Erlam, a senior analyst at Oanda, highlights the importance of considering broader macroeconomic conditions. Investors are currently grappling with hawkish commentary from central banks worldwide, contrasting with pessimistic economic expectations and speculations surrounding potential rate cuts in the coming year.
Market Insights
As investors rekindle their interest in altcoins, the cryptocurrency market’s dynamics are evolving rapidly. Double-digit yields and the promise of significant returns have lured traders back into the altcoin arena. While ETFs remain a favored investment avenue, the crypto space is once again proving its resilience and potential for high-growth opportunities.
It’s important to note that this renewed altcoin fervor is not without risks, and investors must remain vigilant in the face of shifting macroeconomic conditions and evolving central bank policies. In this ever-changing landscape, the appeal of altcoins, like Solana, XRP, and Chainlink, shows that cryptocurrency’s allure is far from fading, promising continued excitement and opportunities for savvy investors.
ADA market cap currently at $18.446 billion. Chart: TradingView.com
Source: Santiment
