Altcoins awakened suddenly, following a few days of more rapid Ethereum (ETH) appreciation. Late on Tuesday, most altcoins bounced off their recent stagnant prices, with some adding as much as 10% against Bitcoin (BTC).
Altcoins usually appreciate against BTC in cycles, but in 2019, most assets continued to sink. Now, talk of potential altcoin growth is renewed.
XRP has added more than 16% overnight to vault the $0.30 level. ETH grew by more than 7% overnight, to $212.55, potentially affecting other paired assets. The other fast grower was Stellar (XLM), adding 16% overnight to $0.066. Almost all altcoins are near lows against BTC, with the potential for further growth.
Over the past months, only separate coins or tokens would stage a rally, which often turned out to be a pump-and-dump. This time, all altcoins rising in coordination looks more encouraging. Immediately, the market cap dominance of BTC fell to 67.8%, down from a recent peak above 71%.
The first signs of a potential altcoin season were seen a few days ago:
https://twitter.com/XS2FX/status/1173244897027088384
Altcoins are much more volatile in comparison to BTC, offering faster appreciation, but also deep losses and sliding liquidity. In 2019, altcoins are getting a boost from new trends like DeFi, where multiple assets can be used as collateral in lending schemes.
Until now, BTC has been dominating the gains, and there are expectations this trend may continue:
https://twitter.com/David__Vacek/status/1174144275896045568
BTC currently moves around $10,269.68, with relatively lowered volatility, increasing the interest for fast gains from altcoins. But in the case of a large-scale BTC move, liquidity may quickly shift.
In late 2019, the role of stablecoins is also increasingly important. Major altcoins have significant inflows from Tether (USDT), de-coupling their price discovery from BTC. Separate coins also get a boost, as the recently launched margin trading for Cosmos (ATOM). Dash (DASH) also hopes for wider adoption after a listing on COINBASE Pro.
New assets are also arriving on the stage, after years of development in the ICO stage. The long-awaited Telegram token, Gram (TON), may also boost the altcoin market.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.
