When was the last time Altcoin Market Cap turned its old 2014 highs into support? With ETH’s price rally above $3200 level, altcoins have started rallying again. Though investors continue their hunt for the next Ethereum-like asset to place their bet on, the overall altcoin market continues rallying.
It rallied over 27000% in over a year in 2014. Since the prices hit new ATHs and market capitalization increased, within 70 days of 2017 high, the market capitalization rallied by nearly 120% and turned 2017 highs into new supports. This marked the beginning of an altcoin rally that would continue in bursts nearly throughout the year.
A key driver of the altcoin rally is the demand across USDT and fiat markets on spot exchanges. Stablecoins like USDT have supplemented demand for altcoins for the longest time now and altcoins have rallied alongside the increasing dominance of stablecoins.
USD stablecoin will soon hit $100B in market cap, and make up 4% of the entire cryptocurrency market. This is a significant share, as it represents the demand from retail traders and institutions. Despite making up only 64% of the stablecoin market, USD Tether dominates the daily trading volume, accounting for over 90% of the daily traded volume of all stablecoins.
BTC and ETH’s price rally and dominance are conducive for altcoin’s price growth as well. Thus increasing number of active wallets across exchanges, ETH’s rally beyond the $3200 level and BTC’s rangebound price action have all supplemented the turning of highs to supports for altcoins.
There are several altcoins that traders have eyed for the longest time, waiting for dips to consolidate. Specifically, COMP, YFI, ALPHA, UNI, RUNE, AAVE, ETH and SXP have consolidated a few times this alt season. Most DeFi altcoins are part of this price rally. There are several altcoins experiencing similar gains as DeFi, a few of them are NFT marketplace tokens.
The bullish market structures formed in ETH/BTC and similar altcoins’ bitcoin markets are conducive to altcoin’s growth. The market structures are not looking bearish yet, however, there are traders buying the dip and scaling their portfolios. This is likely to offer higher returns in the future. The altcoin charts are currently bullish, signaling a rally and further gains in the current altcoin season.
Sign Up For Our Newsletter
Credit: Source link