Why now calls for concentrate on large-cap altcoins such as Ethereum, Litecoin, Polkadot, and Chainlink

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Bitcoin is rallying, and as the price rises, there is more selling pressure on the token, which will most likely spark the next price correction. Altcoins with a limited market cap have produced double-digit returns, and a low market cap indicates low liquidity; however, recent exchange listings and upgrades have increased the price of tokens such as NPXS (117 percent up), HNT (47.97 percent up), and SC (47.97 percent up) (100 percent up). Most retail traders are focusing on large market cap altcoins like Ethereum because improved liquidity has increased uncertainty and made for price movements and more regular profit booking opportunities.

Altcoins in the top 20 are right at their HTF supports, waiting for Bitcoin’s price to decline. When the inflow moves to altcoins, there is a risk of decoupling from the fractal. Traders would say that mid-caps are appealing because of the market activity, and they are hoping for a rebound. It does not, though, extend to the present price cycle, since Bitcoin is still under increasing purchasing pressure, and something similar is unfolding in the altcoin markets.

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Most altcoin charts are choppy, with the exception of Theta, which ranks 14th with a 17 percent price increase in the last 24 hours. Litecoin/USD is one of the choppy ones, and it is in the top five, with LTC closely trailing Bitcoin. This is a high market cap altcoin with a long-term positive sentiment focused on the price chart and trading volume. Low exchange outflows are seen for Defi tokens such as UNI, which have overwhelmed markets and boosted liquidity. DeFi tokens have provided more than double-digit returns; in some situations, the returns have reached as high as 100 percent or more growth in a single day or week.

 

Is it time to focus on large cap altcoins?

ETH total value in the ETH 2.0 Deposit contract ||Source: Twitter

Uniswap’s exchange outflow has reached a three-month peak, coinciding with this time on the Ethereum network, among other tokens. Is it time to concentrate on large-cap altcoins? Long-term, mid- and low-cap are bullish, but recent market activity shows that large-cap has gained the most retail interest and investment from top alts. At the moment, it seems that the market activity in DeFi and other tokens will lead to a resurgence of the alt season, with Ethereum gaining greatly.

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