Altcoin Boom: Investors Shift Focus as Crypto Market Rebounds
Altcoins
Since early April, the crypto market has experienced a notable rebound. Altcoins stand out in particular. While Bitcoin remains stagnant, cryptocurrencies like Ethereum, Solana, and XRP are indeed recording impressive gains. Enough to attract investors’ attention! This dynamic raises a question: why are altcoins experiencing such an ascent?
A crypto trader surrounded by altcoins
In Brief
Altcoins gain 100 billion dollars thanks to low inflation and a favorable macro context.
Crypto investors show a preference for Ethereum and Solana, attracted by their advanced technology and strong potential.
Altcoins Dominate the Crypto Market Recovery
Since early April, the market capitalization of altcoins has jumped nearly 100 billion dollars. Crypto assets such as Ethereum (ETH) and Solana (SOL) are particularly notable, displaying exceptional performances.
ETH has even outperformed Bitcoin. This crypto asset recorded a 5% jump over the last 24 hours, compared to a modest fluctuation for BTC.
ETHUSD chart by TradingView
This dynamic occurs in a favorable macroeconomic context:
lower-than-expected U.S. inflation;
a 600 billion dollar trade deal between the United States and Saudi Arabia.
That’s not all! Crypto ETFs are also showing mixed flows. In fact, Bitcoin ETFs are seeing outflows, while Ethereum ETFs are capturing net inflows. This reflects a shift of crypto investors’ interest towards altcoins.
According to QCP Capital, this trend should continue. Especially as Coinbase’s upcoming integration into the S&P 500 could further boost institutional attention on crypto.
