Coins on the Rise as Alt Season is Set to Spring
MIM #12: Top altcoins up 300% in 2023, new ways for institutional investors to hold crypto, and big gains for $ETH staking protocols
Today, we take a break from covering crypto’s lead actor, Bitcoin. Instead, it’s time to pay homage to the supporting cast, those coins elegantly perched in the background on crypto’s ever-evolving stage.
These unsung heroes provide immense value to the industry by building infrastructure and offering innovative services and blockchain use cases. It’s about time they got their flowers.
The first up is $XRP. $XRP is used on the Ripple Network to compose a harmonious duet, facilitating currency exchange between fiat and crypto coins. $XRP is up 44% since the start of 2023 as of writing. Their performance has left the crypto audience with tears of joy.
Second is Cardano ($ADA), known for its pioneering embrace of the art of proof of stake (PoS). Still avant-garde when Cardano adopted it, PoS reduces transaction time, decreases energy usage, and lessens environmental impact. Like all good artists, Cardano took chances which paid off as the industry evolved. $ADA is up a whopping 68% this year.
We saved the best for last, the jewel in the crown of the Web3 gaming revolution. The platform is so groundbreaking and efficient, rumors that Satoshi himself is running the show have emerged.
Nakamoto Games’ Web3 gaming ecosystem has thrived in 2023, with its native token $NAKA up a staggering 300% in 2023. A masterclass in blockchain innovation, from a project that does justice to its namesake, Satoshi Nakamoto.
$NAKA price movement since Jan 1st 2023 (Source: Coinmarketcap.com)
All joking aside, it is good to remember all the innovations emerging within the industry. From AI protocols to Web3 gaming to great investment opportunities, blockchain technology has caused a ripple effect, spawning some of the best technological leaps of the 21st century. Here is all the news from last week.
Last week’s biggest news
- Societe Generale’s crypto division, SG Forge, has announced the launch of the first euro-backed stablecoin on the Ethereum blockchain. The new stablecoin aims to bridge the gap between traditional capital markets and digital assets.
- Agility, a liquid staking platform, has experienced a significant surge in its total value locked (TVL). The platform’s TVL spiked by over 643% to $467 million in the past seven days. The platform has also seen a rise in its token AGI’s value and market capitalization.
- The European Parliament has voted in favor of two new crypto laws. The MiCA regulation requires crypto operators to obtain a license to operate and stablecoin issuers to maintain sufficient reserves. The Transfer of Funds regulation requires crypto operators to identify their customers to prevent money laundering. These laws will take effect in 2024, making the EU the first major jurisdiction to introduce comprehensive cryptocurrency regulations.
- Ledger and Etana Custody are partnering to provide regulated cryptocurrency custody services for institutional clients in the U.S. The collaboration aims to simplify digital asset holdings for institutions and enhance investor confidence in the market. The deal gives customers access to 1,800 tokens supported by Ledger while segregating client funds and reducing counterparty risks. Etana will act as a settlement party to counterparties in a given transaction, enabling them to trade digital assets without directly putting up their money, eliminating the risk of deals falling through. The collaboration helps institutional investors comply with crypto regulations.
- DeFi data directory and investment platform, UpOnly debuts a brand new launchpad, just as altcoin market conditions set to improve. The launchpad allows investors to buy tokens at early bird discounts through exclusive presales. Presales will cover various branches of crypto, including Metaverse, Web3 gaming, DeFi, and meme coins. The launchpad release comes at a perfect time, as altcoins are set for a bullish jump throughout this quarter.
Magic’s parting thoughts
There are three digital nuggets that all crypto-nites have digested and accepted in 2023. Unless you have been living under a rock this year, every crypto coin connoisseur knows these 2023 truths.
Number one: Bitcoin is the top-performing asset of 2023 and has fully recovered after last year’s rigmarole.
Number two: Elon Musk’s love affair with the market’s top canine crypto will continue, leading to monumental Dogecoin pumps.
Number three: Ethereum has transitioned to PoS, leading investors to jump off the diving board into the high-yield pools offered by countless DeFi protocols.
What may be lesser known is that, although Bitcoin is objectively performing wonderfully, its dominance is declining relative to the market. This nugget indicates a potential altcoin rally.
Analysts observed a shift in Open Interest and trade volume towards altcoins last week, which experts believe is a sign of an upcoming alt season. Alt season is characterized by a rotation of capital from Bitcoin to altcoins.
Altcoins have witnessed a significant increase in Open Interest, a crucial indicator of market interest and commitment to an asset. Higher Open Interest leads to higher liquidity and expected trade volume in the market.
Furthermore, there has been an increase in the trade volume in different altcoins, which supports the bullish thesis for an alt season. Bitcoin dominance has also experienced a pullback, dropping to 47.5% after recently peaking above 49%. This decline in Bitcoin dominance is typically followed by capital rotation to altcoins, resulting in an alt season.
Magic’s parting thought of his parting thoughts is this. Most alternative cryptocurrencies are currently undervalued, and when the alt season begins, these coins are likely to trend higher and break out of their current range. See you next week, Speedsters!
