Altcoins Market Share Versus Bitcoin At A 4 Month High: What’s The Trigger?
November 07 2023 - 8:00PM
NEWSBTC
Looking at Kaiko’s data shared on November 7 by
Dessislava Ianeva, a Research Analyst at the blockchain analyst
firm, it is evident that altcoins market share versus Bitcoin (BTC)
has been rising in the past four months, reaching a 4-month high,
the highest level since July 2023. The surge in market share can be
attributed to multiple factors but primarily because of the upswing
in Bitcoin prices, improving sentiment across the crypto market,
and project-related developments that have attracted capital over
the past few trading months. Altcoins Market Share Rising Versus
Bitcoin Kaiko notes that the altcoins market share of the top 30
altcoins stands at 44%, an improvement over the past few trading
months. This is a notable expansion considering that altcoin
prices, including those of leading coins like Ethereum (ETH), XRP,
Solana (SOL), Cardano (ADA), and the rest posted sharp losses in
2022. Even though prices continued falling, losses were contained
in 2023 but remain lower from 2021 peaks when asset prices surged
to record lows. Related Reading: Cardano (ADA) 50-Week EMA
Flashes Bullish, Is $0.45 On The Way? Despite altcoins gnawing more
market share from Bitcoin, the most valuable coin continues to
enjoy multiple advantages, especially from a regulatory standpoint.
For instance, the coin has been endorsed by regulators in the
United States, Europe, and Canada. In this line, complex
derivatives products, including Exchange-Traded Products (ETPs) and
futures, are already listed in Canada, the United States, and some
European countries. The spike at the end of July was partly because
of the increasing confidence across crypto that the United States
Securities and Exchange Commission (SEC) might approve the first
Exchange-Traded Fund (ETF). This confidence follows BlackRock’s
decision to submit its Bitcoin ETF application. Due to their track
record, market analysts elevated the odds of the strict agency to
authorize the first spot in Bitcoin ETF. Why Are Altcoins Like
Ethereum, XRP, And Solana Rallying? Presently, the upward momentum
in Bitcoin has been shrinking but remains at around 2023 high on
improving market sentiment. The slowdown in the uptrend coincides
with rapidly shifting investor patterns, especially in Solana, XRP,
and Ethereum. Related Reading: Bitcoin May Be Headed Towards 20%+
Decline Based On This Pattern To illustrate, the SEC’s decision to
approve the launch of the Ethereum Futures product led to more
interest in the project, directly supporting ETH prices. At the
same time, Solana has been edging higher, even reversing post-FTX
losses despite action by FTX estate managers. There is more
on-chain activity on Solana. Meanwhile, regulatory clarity on XRP
has seen Ripple double down, striking more partners. Feature image
from Canva, chart from TradingView
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