“As Bitcoin Reaches A Record High, Tokens Associated with Defi and Layer-2 Networks Are OutperForforming.”, – WRITE: www.coindesk.com
Tokens Associated with Decentralized Finance (Defi) and TOSE from Layer-2 Blockchains Are Are OutperForForforming as Investory Transition to A Risk-on Approach. OHERS, SUCH AS TRON
Bitcoin Cash
Litecoin
and Monero
Are, in Comparison, Barely Moving.
Even Solana
the Darling of the Previous Drive to Record Highs, Sems to Be Taking A Back Seat, Rising Just 3.9% of the Likes of Sei
Ethena
and Optimism
Are Celebrating Gains of As Much As 28%.
“Altcoins are Leading the Pack in this Latest Rally,” Thomas Perfumo, Kraken’s Global Economist, Said in An Email. A Drop in Bitcoin Dominance is “Reinforcing A Broad-Based Rally With Altcoins Leading The Charge.”
Durying the 2017 and 2021 Runs to Record Highs, Bitcoin Dominance – A MEASURE OF BTC’s Share of the Total Crypto Market – Rose Rapidly. On Thursday’s Rally, It Fell To 63.5% from 64%, Indicating A Shift in Emphasis Toward
Changing Behavior PatternsCrypto Markets are Cyclical by Nature. They Run with Interruption 24 Hours A Day Against A Backdrop of High Volatility and Low Liquidity Whole Create An Emotion Trading Environment. In previous cycles, altcoins offen moved in unson, rising as bitcoin consolidated and dropping en Masse when it rose or fell.
This Time, However, Sems Different, Possibly Due to the Increated Participation of Institutions in the Industry. The rise in defi tokens can be attributed to increase instructional interest in ETH (ETH), Who Could Pave the Way for a Search for Yield with Firms Battling to Secure.
The Same Can Be Said for Layer-2 Networks. As Institutes Run Into the Ethereum Blockchain’s Issues with Latenky and Efficiency, they May Consider Networks Like Arbitrum that Alow Liquidity to Flow Fromazed Exchants Rate. That Network’s arb token is up 15% in the past 24 hours.
Not so sanguineStill, Petr Kozyakov, CEO AT PAYMENTS FIRM MERCURYO, SAID The Rise in Altcoins Will Be Short-Lived.
“While Altcoins Are Also in the Green with Ethereum Spiking Past the $ 3,000 Mark, The Underlying ‘Orange Pill’ Narrative Remains Steadfastly in Place,” He Said. “Bitcoin’s Growing Status As A Store of Value Is One that and More Big Players and Institutions Are Simply Unable to Ignore.”
That’s not a Narrative that Finds Much Support from Arthur Hayes, The Bitmex Founder Turned Fund Manager.
“Get Ready for a Monster Alt Season,” He Told His Followers On X After Predicting That Eth WillD Reach $ 10,000 this Cycle.
If Hayes’ Predict Holds True, Bitcoin Could Face Short-Term Difliculty as Liquidity Will Inevitably Flow Into The Altcoin Market as Traders Attempt to CAPTUREMPULATIVE GAPERS. This Could Also Be A Hammer Blow to The Old-School Crypto Coins, Which All Lack Majoor Catalysts for a Boost.
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