The digital asset market has seen price spikes in recent weeks, with market leader Bitcoin (BTC) soaring to a 16-month high following speculations around a potential spot BTC Exchange Traded Fund (ETF) approval by the Securities and Exchange Commission (SEC).
As investors gain renewed interest in BTC, several altcoins have spiked in its wake, leading analysts to suggest that the crypto winter could be over.
After Bitcoin recovered losses from the previous year, it rallied to a 16-month high, surpassing $35,000 as speculation of a spot ETF grew in the United States market. The uphill climb of Bitcoin has since slowed, with the price trading sideways hovering above $36k.
While the buzz around the market leader slows, several altcoins are recording double-digit gains, attracting the likes of retail and institutional traders as the market rebounds.
XRP led the altcoin drive with an 11% growth after announcing multiple deals, from its acceptance in Dubai to its central bank digital currency (CBDC) platform being used by the Bank of Georgia as well as five other countries.
Solana (SOL) has soared 9% in the last 24 hours, 17% in the past week, and 87% from last month, exchanging hands at $48.86. Toncoin (TON) has seen a 3.53% increase across 24 hours, a 16% rally in the last seven days, and a 23% rise from last month.
Chainlink (LINK), Polygon (MATIC), and Cardano (ADA) have soared 15.85%, 25.21%, and 20.86%, respectively, in the last seven days.
At press time, leading altcoin Ethereum (ETH) trades at $2,063 with a weekly increase of slightly over 4%, climbing after weeks of static prices. In terms of investment products, while Bitcoin continues to dominate the market, altcoins have also recorded new growth.
Altcoin products gain alongside BTC
A new CoinShares market report shows institutional investors moving towards altcoins after the wider market saw inflows of $261 million, its sixth consecutive week of gains.
ETH products posted inflows totalling $17.5 million last week, seeking to wipe out losses from previous weeks. Ethereum-based products have seen exits even after multiple futures ETFs were rolled out, resulting in Solana’s products leading the altcoin rally.
Despite ETH’s slow wholesale products, most money managers opine that it has the most growth potential in the cryptocurrency market because of its staking features and increasing decentralized applications volume.
On the other hand, Solana has been termed institutional investor’s favourite on the heels of consecutive inflows in the market. Chainlink also saw inflows of $2 million, raising the total of investments in altcoin products 17% of the entire market.