Altcoins Thrive as Bitcoin Takes a Break

Altcoins thrive as Bitcoin takes a break. Smaller cryptocurrencies are now gradually starting to overtake Bitcoin as investors place bets that they will be the next to reach all-time highs.

Altcoins Thrive as Bitcoin Takes a Break

Altcoins Thrive as Bitcoin Takes a Break

Over the past month, an index that tracks the bottom half of the top 100 digital assets has increased by around 60%, outpacing the 56% increase in bitcoin. According to data tracker CoinGecko, during the same period, the total value of tokens increased by more than US$800 billion.

According to market observers, there are increasing indications that investors are shifting their focus from the largest digital asset to smaller competitors, or altcoins, which have underperformed in the cryptocurrency rebound driven by bitcoin that started last year.

David Lawant, head of research at cryptocurrency prime broker FalconX, stated, “Our desk has been seeing strong flows and more excitement on non-bitcoin assets recently.” According to him, investment in Bitcoin was once five times more than that of ether, which came in second. However, that ratio has since plummeted to two times.

Even with the introduction of the first-ever US exchange-traded funds for the token and the impending slowdown in supply growth, some coins, like ether, are still a long way from reaching all-time highs.

Trading on Key Exchanges Last Week

Excessive speculations on bitcoin have spread throughout the derivatives industry, as shown by indicators like higher perpetual futures fees and historically high open interest, or outstanding contracts, at the bitcoin futures market operated by Chicago-based CME Group.

For smaller digital assets, too, it presents a favorable environment, according to Jag Kooner, head of derivatives at cryptocurrency exchange Bitfinex.

As the market’s attention moves away from bitcoin and farther out on the risk curve toward meme tokens, which accounted for a third of the trading on key exchanges last week, Kooner wrote in a note, “It’s anticipated that the surge in open interest will eventually redistribute toward altcoins.”

Crypto Experts May Explain the Meme Trend

At SAST on Wednesday, the memecoins shiba inu, floki, dogwifhat, pepe, and bonk had gained at least 150% and were ranked first on CoinGecko’s seven-day performance charts. A little below the record $69 192 set on Tuesday in US trading, bitcoin was traded at $67 250.

Crypto experts may explain the meme trend as a step toward moving beyond bitcoin, while others may simply view it as a pointless guess.

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