Bitcoin

Due to the stagnation in Bitcoin prices, altcoins can continue to rise

Ether (ETH) took center stage at the beginning of a new month and the second largest cryptocurrency by market capitalization hit a new all-time high of $ 3,338. This has led many analysts to say that the new “altcoin season” has already begun. Meanwhile, Bitcoin (BTC) price continues to encounter resistance near the $ 56,000- $ 58,000 level.

Data from Cointelegraph Markets Y. TradingView show that the price of ether has risen 54% since falling to a low of $ 2,160 on April 25, to a new high of $ 3,324 on May 3, after a 12% high on the main altcoin hit Monday was for the first time in history above the USD 3,300 level.

ETH / USDT 4-hour chart. Fountain: TradingView

While most cryptocurrency traders celebrate the price breakdown of ether that helped the project co-founder, Vitalik Buterin, Joins Cryptocurrency Billionaires Club, Bears are on track to take big losses Almost all of the 76,000 put option contracts that expire on April 7 are worthless if the price of Ether stays above $ 3,100.

Due to the stagnation in Bitcoin prices, altcoins can continue to rise
Due to the stagnation in Bitcoin prices, altcoins can continue to rise

And it’s not just ether, the only cryptocurrency that has done well lately. In the last 2 months The altcoin market as a whole has surged 119% in value, moving the 2017 high to a new level of support.

Ether HODLing average increases

According to Glassnode, an on-chain analytics company, The amount of long-term ether held has increased since late 2020, and this could be a factor driving the multi-month rally.

Ethereum HODL waves. Fountain: Glass knot

The graphic above shows the “Ethereum HODL waves” indicate that “the coins appear to have a term of 1 week to more than 6 months from the end of 2020 (blue arrows)”, with the “proportion of coins increasing in thickness from 1 month to 6 months.” This suggests that HODLing coins that accumulated in the early bull market are still a preferred strategy. “

Glassnode also noted that a large volume of ether was removed from exchange portfolios in 2021. With 10 cases of withdrawals of more than 200,000 Ether per day in just 4 months as institutional demand increases and the use of Decentralized Funding (DeFi) increases.

Deployment of Ethereum in smart contracts versus equilibrium on exchanges. Fountain: Glass knot

As can be seen in the graph above, the amount of ether on the exchanges has decreased since September 2020. This coincided with a notable increase in the amount of Ether contained in smart contracts for decentralized finance.

At the moment, The amount of ether included in smart contracts exceeds the amount held in the reserves of central exchanges.

Altcoins outperform Bitcoin for now

Since Bitcoin is still struggling to close a day of $ 58,000, Altcoins continue to campaign for the upcoming “altcoin season”.

Daily performance of the cryptocurrency market. Fountain: Coin360

Waves (WAVES) was the star of the day with a token price of 41% to an all-time high of USD 36.41. Ethereum Classic (ETC) also rose 15% to a new all-time high of USD 50.90.

After an increase of 17.84% on USD 5,777 in the last 24 hours, Maker (MKR) is now the top decentralized finance (DeFi) protocol with a total locked value of $ 10.92 trillion.

The total market cap of cryptocurrencies is currently $ 2.29 trillion, and the dominance rate of Bitcoin is 46.6%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade movement is associated with risks. You must do your own research when making a decision.

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