The crypto market is experiencing changes: despite Bitcoin's recent rise above $120,000, altcoins are beginning to gain popularity. Investments in Ethereum have catalyzed a rapid increase in these digital assets.
Ethereum Leads the Altcoin Rally
The altcoin rally appears to have been triggered by a massive $1.3 billion investment in Ethereum by SharpLink. According to CryptoQuant, the firm now holds 438,190 ETH, significantly boosting market confidence. Meanwhile, Ethereum has jumped 170% from its recent lows and is now just 23% away from its all-time high of $4,871. ETH's strong recovery has catalyzed similar moves across several other altcoins.
Shifting Futures Trading Volume
CryptoQuant's data also shows a significant shift in trader behavior. Futures trading volume for Ethereum and other altcoins has reached $223.6 billion, the highest in five months. This means that altcoins and Ethereum now make up 83% of total futures volume, while Bitcoin's share has fallen to just 17%.
Retail Investors Losing Interest in Bitcoin
Further CryptoQuant data shows a drop in Bitcoin demand from retail investors over the last 30 days. Typically, when Bitcoin grabs attention, altcoins follow. However, data indicates a 9.7% rise in Bitcoin transactions under $10K, a pattern often seen before major altcoin rallies. Recently, Bitcoin's dominance has dropped nearly 7%, and more traders are shifting their focus to altcoins.
Although Bitcoin remains an important player in the market, changes in retail demand and growing interest in altcoins may herald the beginning of a new altcoin season. Observing the decisions of traders and changes in trading volumes could indicate further developments in the crypto market.
