Altcoin Market Booms by Over 50% in Recent Months
The altcoin market has experienced a massive surge, increasing by more than 50% as early July. This uptick is fueling speculation about the emergence of an altcoin season.
New data from Coinbase shows that while Bitcoin’s market share has slipped from 65% in May to around 59% today, the overall crypto market sees a shift towards altcoins. this change happens as major investors increasingly favor Ethereum.
According to a report from Coinbase,large corporations now hold almost 3 million ETH – equivalent to slightly more than two percent of ETH’s total supply. One notable buyer was Bitmine Immersion Technologies,which bought 1.15 million ETH this year after raising $20 billion.
This trend is benefiting related tokens like Arbitrum, Ethena, Lido DAO, and Optimism. Among these,Lido fared best,seeing a 58% gain in just a month. Interestingly, recent U.S.Securities and Exchange Commission guidelines suggest that liquid staking might no longer be classified as securities, boosting the value of Lido, an asset linked with Ethereum.
The vibrant altcoin market owes much to the influx of retail participants. As interest rates may dip in the coming months, assets in lower-yielding options like money market funds are likely to slowly shift towards the higher returns offered by altcoins.
- Institutional investors favor Ethereum, driving up related assets.
- Potential federal interest rate cuts might attract retail investment in cryptos.
- liquid staking tokens see gains from shifting SEC views.
While Coinbase is optimistic about the future of altcoins, they are cautious about predicting a full-fledged altcoin season. Nonetheless, these trends could collectively spark a notable altcoin rally in the coming months.
