With altcoins pumping heavily and with a total crypto market capitalization of over $ 2 trillion, it seems undeniable that the “altcoin season” is coming. Bitcoin, on the other hand, seems to be stuck at its current levels. In the evening, all cryptocurrencies in the top 10 were gaining.
However, in the last 24 hours, XRP rose by a staggering 46.7% to $ 1.05, the highest price in 3 years and took its place in the top 5. Yesterday, more than 600 transactions worth $ 100,000 were posted in less than 12 hours. Hence, the price rose in response to increased XRP whale activity, as shown in the picture below.
Following XRP, Litecoin and Binance Coin (BNB) reported the biggest gains in the same period, with 10.1% and 7.5% respectively. In the higher timeframes, the performances of XRP with 81.5% increase, BNB with 40.2%, Polkadot (DOT) with 29% and Ethereum with 16.2% on the weekly chart.
The second coin broke the $ 2,100 resistance, reaching an all-time high. In the top 10, ETH offers the strongest foundations and ranks above the two sectors, non fungible tokens (NFT) and DeFi, that continue to attract investors. Second, it has recently reached a new milestone, exceeding $ 50 billion in locked total value (TVL).
Just like ETH, BNB has hit an all-time high in recent days. The number of active addresses on the Binance Smart Chain exceeded 370,000 yesterday, 1.1 times that of Ethereum. Also, the 24-hour on-chain transaction volume exceeds 3.9 million, which is more than 300% of Ethereum.
Therefore, it would be fair to assume that the activity and growth of the DeFi ecosystem continues to be a driving factor in price performance for ETH and BNB. Also, the UNI’s ranking in the top 10 and a 7.6% increase in its weekly chart and an increase of 16.1% with the oracle service Chainlink (LINK) do not seem to be a coincidence.
What is happening with Bitcoin?
Another important factor in the gains in altcoins is the decline in Bitcoin’s dominance. This metric, which has been at its lowest since 2019, is now down 57%, down nearly 20% since the beginning of the year. On the contrary, the rise of Bitcoin could hurt altcoin earnings. However, the analyst “Molly” made a comparison between the altcoin price increase in 2017-2018 and stated that the current “pump” is “nothing” that indicates more earnings for these assets, as seen below.
The “kimchi effect” may also play an important role. With tax exemptions for cryptocurrency earnings only by the end of 2021, investors in South Korea rushed to allocate capital to many altcoins that promised a high return on investment in a short period of time.
Meanwhile, the crypto scam in South Korea has also been reflected in the local price of Bitcoin there. Exchange platforms in South Korea receive a premium (“kimchi bonus”) from their customers. Last week, BTC’s spot market price was $ 59,000, while investors in South Korea had to buy bitcoin for almost $ 66,000.
However, it seems like it is only a matter of time before the Bitcoin price rises. With the BTC supply at record low stock exchanges, increased corporate participation, and the possible announcement of another stimulus package in the US, the outlook has picked up considerably.