Bitcoin has been above $30,000 for several days and seems to have reached its zenith for the time being. After more and more institutional investors – i.e. companies, insurance companies, funds, etc. – have pushed billions into digital gold, there is a small breather at a high level. The price rally has tended to ignore other crypto assets – until now.
But after Bitcoin reached a new all-time high, it’s now the turn of Ethereum and Co, which are heavily invested in. No wonder: BTC has grown from 19,000 to now 33,000 dollars within a month and has thus become much more expensive. Moreover, doubts are now growing that it will probably not continue to rise in this style for much longer. However, investors are now sensing an opportunity in altcoins that have lost market share in recent weeks.
At the forefront of this is, of course, Ethereum. The token has increased in value by 40 percent in the past 24 hours and now stands at more than $1,000. ETH has thus grown by 50 percent within a week and is approaching its all-time high of $1,432 on Jan. 13, 2018, in leaps and bounds. The asset is attractive, however, not only because it represents an alternative to BTC, but also because many expect ETH to have a bright future from the switch to Proof of Stake.
Litecoin overtakes XRP
Behind Ethereum, altcoins are booming across the board. There is, of course, Litecoin (LTC), which has gained 25 percent in the last 24 hours and now boasts a market cap larger than that of the badly battered XRP.
The relatively new token DOT from the Ethereum spin-off Polkadot is also performing very strongly. The DOT token gained nearly 95 percent in value last week – no other crypto asset in the top 25 has grown that much. Strong growth rates at around 50 percent in the past 24 hours are also shown by Cardano (ADA), VeChain (VET) or the DeFi token Uniswap (UNI), which are growing even faster than the rest of the market.
As always, what shoots up can also quickly come down again. Altcoins in particular have shown tremendous volatility in the past.
And how is Ripple actually doing?
The beleaguered XRP token is now also benefiting from the strong bull market. This has temporarily lost up to 60 percent in value after the SEC complaint against the company Ripple, which has brought XRP to the market, became known. But on Monday morning, there are even single-digit gains for this asset, whose legal status in the U.S. is more than questionable.
XRP has thus recovered to the level it had before the second Bitcoin hype at the end of 2020 and is now back at around $0.24. After major players in the crypto market such as Coinbase, Bitstamp, Crypto.com or Bitwise have removed XRP from their offerings until there is legal clarity again, it now remains to be seen how Ripple goes on the media offensive and how the court case develops from February.
However, XRP has now had to permanently give up its position as number 3 on the crypto market behind Bitcoin and Ethereum. In terms of market capitalization, the token is now just behind Litecoin (LTC) and very clearly behind Tether (USDT).