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When was the last time Altcoin Market Cap used its 2014 highs as support? Altcoins have begun to spike again as the price of ETH has risen above the $3200 mark. Despite the fact that buyers are already looking for the next Ethereum-like commodity to gamble on, the overall altcoin demand is still on the rise.
It rallied over 27000% in over a year in 2014. Since the prices hit new ATHs and market capitalization increased, within 70 days of 2017 high, the market capitalization rallied by nearly 120% and turned 2017 highs into new supports. This marked the beginning of an altcoin rally that would continue in bursts nearly throughout the year.
The demand through USDT and fiat markets on spot exchanges is a core driver of the altcoin rally. For the longest time, stablecoins such as USDT have supplemented interest for altcoins, and altcoins have rallied in tandem with stablecoin supremacy.
USD stablecoin’s market value will quickly reach $100 billion, accounting for 4% of the entire cryptocurrency market. This is a sizable portion because it reflects demand from retail traders and organisations. Despite accounting for just 64% of the stablecoin market, USD Tether dominates the daily trading volume, accounting for more than 90% of all stablecoins’ daily traded volume.
The market rally and domination of BTC and ETH are favourable for altcoin price development as well. Thus, the growing number of active wallets across exchanges, ETH’s surge above the $3200 mark, and BTC’s rangebound market movement have all contributed to altcoins’ peaks being supports.
Several altcoins have been watched by traders for a long time, hoping for dips to accumulate. COMP, YFI, ALPHA, UNI, RUNE, AAVE, ETH, and SXP have all merged several times this alt season. The majority of DeFi altcoins are benefiting from this price increase. Several altcoins are seeing similar gains to DeFi, including NFT marketplace tokens.
The bullish market frameworks built in the bitcoin markets of ETH/BTC and related altcoins are favourable to altcoin development. The market structures are not yet bearish, but traders are purchasing the dip and scaling their portfolios. In the future, this is expected to have better returns. The altcoin charts are currently bullish, indicating a rebound and additional gains during the ongoing altcoin season.