The cryptocurrency market has regained momentum after a prolonged downtrend, with its valuation reaching $2.96 trillion at the time of writing. Notably, this market cap is only $40 billion lower than the previous peak of $3 trillion.
Cryptocurrency assets like Bitcoin [BTC], Ethereum [ETH], Ripple [XRP], and Dogecoin [DOGE] continue to dominate the market and contribute to its growth.
However, Grayscale, the institutional investment platform targeting traditional financial investors, revealed that only a few of these top assets have turned a profit.
Could this be the moment for smart money to rewrite the script?
A recent report from Grayscale compared its various cryptocurrency holdings, showing that BTC and XRP have turned a profit, while ETH and DOGE have incurred losses.
It has been reported that over the past year, Ethereum and Dogecoin have fallen by 47% and 42.2% respectively.
Meanwhile, Bitcoin and XRP rose by 0.4% and 6.1% respectively, solidifying their positions as leaders.
This market sentiment typically determines potential market trends, as retail and other institutional investors use it as guidance to decide on the direction of their next investments.
Meanwhile, AMBCrypto analyzed why these individual assets rank highest or lowest in Grayscale's portfolio.
Bitcoin has always been the main focus of the cryptocurrency market.
According to CoinGlass, it has garnered significant attention from institutions over the past few months, especially after the approval of a spot Bitcoin exchange-traded fund (ETF), which currently has total assets under management (AUM) of $110.3 billion.
Following Donald Trump's inauguration, discussions related to a federal Bitcoin strategic reserve resurfaced, further piquing the interest of institutional investors.
For XRP, its growth has been influenced by the team's years-long legal battle with the U.S. Securities and Exchange Commission (SEC) over whether XRP is a security and the subsequent settlement.
Additionally, Ripple's focus on growth, including the launch of its own stablecoin and multiple acquisitions and collaborations, has played a significant role in its market rebound.
Liquidity outflows are suppressing the performance of ETH and memecoins.
However, Ethereum has failed to keep pace.
Ethereum is the second-largest cryptocurrency by market cap, valued at $217.4 billion, but its performance has been poor. Despite previously showing positive growth, it has recently lost appeal among investors.
The ETH/BTC chart tracks the liquidity inflows and outflows between the two assets, showing that Ethereum's liquidity is significantly lower compared to Bitcoin, with its dominance declining by 70% since January 2024.
In addition, memecoins like Dogecoin are struggling to attract new capital.
According to data from Artemis, the memecoin industry has shrunk by 44.3% so far this year as investors have turned to more stable assets.
According to data from Artemis, the entire memecoin market has declined by 44.3% so far this year as investors have shifted towards stable assets or other cryptocurrencies.