The recent altcoin market experienced significant drops but showed signs of resilience, leaving hope for continued growth.
Market Resilience of Altcoins
As of August 20, the total market cap of altcoins, excluding Bitcoin and Ethereum, remained over $1 trillion. This figure is above the key support zone established earlier this year, indicating continued buyer support.
The Return of Retail Traders
Interest in altcoins spiked on August 17 during the market dip. This trend suggests that traders are scouting for potential investments despite price corrections. However, stablecoin reserves on exchanges dropped to $52.3 billion, which may indicate traders are not rushing to inject new funds.
Prospects for Micro-Cap Altcoins
Among the most noticeable bullish signals are the performances of micro-cap altcoins like API3 and WKC. These coins tend to rally when traders start to take risks. Institutional analysts noted that the next wave may be led by altcoins, with past instances showing they captured a significant portion of overall market gains.
Although recent price declines raised concerns, the maintenance of key support levels and the activation of trader interest suggest that the altcoin season may continue.
