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The new “alt season” has achieved significant returns but remains sluggish in BTC terms.
Cardano (ADA), the native token of the same-named smart contract platform, has entered the list of altcoins that have reached new all-time highs this week.
Cardano underscores “alt season 2.0” appetite
Data from Tradingview showed ADA/USD hitting over $1.70 for the first time on May 7.
Cardano rose impressively over the last few days, rising from below $1.30 to the tops as sell-walls vanished, in a development that a growing number of large-cap altcoins are attempting to replicate.
Analysts are already looking at short-term expectations of $5 as Bitcoin (BTC) begins to fluctuate, adding steam to an already thriving altcoin scene.
“The thing I don’t like on ADA right now: there was a lot of volume and now there’s not,” popular trader Scott Melker said in a note of caution during a market overview earlier in the week.
He went on to say that the ADA/USD chart “looked fine” but that the pair are currently best suited to buyers rather than short-term traders.
ADA remains well below its all-time high against BTC, a trait shared by many altcoins notwithstanding their USD results. ADA/BTC peaked at 0.000071 BTC in January 2018 and is now trading at 0.00003 BTC.
What’s in a bull run?
As previously noted, altcoin market activity is still dominated by wild swings on tokens that have seen little to no technological or acceptance cases.
Dogecoin (DOGE) and then Ethereum Classic (ETC) emerged as standouts, with the latter setting new all-time highs on Friday as DOGE/USD cooled from its recent rally.
Famous cryptocurrency names have also taken to media forums to highlight the inherent gaps between Bitcoin and altcoins.
“In terms of Dogecoin, it’s no different than GameStop, where GameStop is a real company but became a bit of a meme with a certain contingent of the retail trading audience,” Ryan Selkis, founder of analytics platform Messari, told CNBC on Thursday.
Meanwhile, Bitcoin’s dominance of the overall cryptocurrency market cap continues to erode, reaching one-year lows below 45 percent.