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The altcoin market capitalisation has hit fresh all-time highs, and now is the time to expect a DeFi token revival and a DeFi-led altcoin rally. If the current altcoin market is cyclical, altcoins, led by DeFi tokens, will make a comeback and begin a price rally. Altcoins are moving quicker than Bitcoin in the present trading period, supplying institutional traders with double-digit returns.
According to Glassnode info, exchange inflow for most altcoins and stablecoins such as USDC, BUSD, and SUSHI has reached a monthly low. Since supply is poor, volatility is low; but, according to the contrarian opinion, now is the right time to stack altcoins. If an altcoin’s trading volume rises when supply stays low, market pressure will likely decrease and the price will rise in the short term. Buying pressure on SUSHI, AAVE, and ETH is currently building. In the short term, increased purchasing demand is equal to a rise in price and a rally.
Since Bitcoin is rangebound after its latest ATH, if it trades sideways, DeFi tokens will lead the altcoin rally, with Ethereum closely following if the next update becomes accessible shortly. According to Glassnode numbers, Ethereum’s mining difficulty reached an all-time high yesterday, and in the past, this has coincided with an impending price breakthrough for the altcoin.
Retail traders who are accumulating during the current market cycle may see potential to book unrealised gains in the coming week. Historically, Ethereum has led the rally; nevertheless, DeFi tokens are providing double-digit returns, and retail and HODLers’ investments are more profitable as they contain a combination of DeFi tokens and large-capitalization altcoins.
Bitcoin’s range-bound price behaviour has restricted its ability to break beyond the $63000 mark and meet the target set by the S2F and S2Fx versions. Around the same time, investment inflows into altcoins and Bitcoins have decreased, fueling the supply scarcity narrative; however, this is more profitable for retail traders selling altcoins because profit volatility is determined by volume rather than liquidity on spot exchanges. In the case of Bitcoin, the same is true. However, an altcoin boom is expected to modify portfolio returns for traders across exchanges over the next 30 days.