The altcoin market is showing signs of renewed strength, with XRP and BNB leading a fresh wave of momentum. Despite a slight dip in total market capitalization—down 1.6% to $3.79 trillion—analysts see growing interest in altcoin accumulation, driven by institutional flows and ecosystem activity.

Altcoins Gain Ground Amid Shifting Market Dynamics

A new report from CryptoQuant highlights significant altcoin traction in the final week of July, with BNB and XRP outperforming broader market expectations. Both tokens recorded major price milestones, while Ethereum (ETH) continued to struggle under sustained sell pressure.

BNB reached a new all-time high above $860, surpassing its 2021 bull market peak and marking its strongest price level since its launch in 2017. The token surged 23% in July, building on consistent quarterly momentum and pushing its market cap beyond $110 billion.

“BNB leads with the lowest drawdown, trading consistently near its all-time highs. It has never fallen more than ~30% below its ATH this year, reflecting strong investor confidence and sustained demand,” CryptoQuant analysts noted.

“The rally is likely fueled by increased activity on BNB Chain and the token’s utility within the Binance ecosystem.”

Meanwhile, XRP posted gains amid renewed institutional interest, spurred by a more favorable regulatory outlook. The token, which has long been entangled in legal battles with the U.S. Securities and Exchange Commission (SEC), has recently benefited from shifting regulatory sentiment.

Regulatory Shifts Favor XRP

Regulatory developments appear to be playing a key role in XRP’s resurgence. Under SEC Commissioner Paul Atkin, the agency has signaled broader support for crypto innovation, introducing clearer frameworks and reducing legal ambiguity for digital assets.

Recent moves include:

  • Formation of a crypto task force post-Trump inauguration.

  • A new White House regulatory roadmap.

  • Legislative support for the GENIUS Act, aimed at stablecoin clarity and broader crypto adoption.

These signals have reassured institutional investors, leading to increased XRP inflows and helping the token recover from prolonged legal uncertainty.

Ethereum Struggles Despite Market Optimism

In contrast, Ethereum (ETH) has failed to reclaim its 2021 highs despite strong fundamentals and earlier institutional accumulation. Over the past week, large ETH transfers to centralized exchanges by whale addresses suggest growing sell pressure, potentially capping price growth in the short term.

CryptoQuant analysts note that this trend may reflect profit-taking behavior or a temporary shift in market confidence, even as long-term fundamentals remain strong.

Conclusion

While short-term volatility persists, altcoins—particularly BNB and XRP—are showing signs of decoupling from broader market weakness. Backed by ecosystem growth, regulatory clarity, and institutional interest, these tokens could continue to lead the next phase of the crypto market cycle. Meanwhile, Ethereum’s next move remains uncertain, as sell pressure continues to weigh down its upward trajectory.