Bitcoin continued to trade sideways this week as Ether and other altcoins took the spotlight. ETH\u2019s most recent all-time high (ATH) of $3,541.46 took place on Wednesday; by Friday, the price had settled around $3,460.27. Dogecoin (DOGE) also hit a new ATH yesterday of roughly $0.69; CoinTelegraph called DOGE\u2019s rise \u201cthe leading indicator for alt season.\u201d<\/p>\n
Matthew Unger, the founder of iComply, also told Finance Magnates that DOGE\u2019s rise is \u201cthe biggest news of the past 3 months.\u201d<\/p>\n
Looking Forward to Meeting You at iFX EXPO Dubai May 2021 – Making It Happen!<\/strong><\/p>\n \u201cWe can expect to see DOGE become a major contender as it enters the top 3 cryptos. The network continues to be underestimated because it was \u2018made as a joke,\u201d he said, adding that he believes that \u201cFundamentally, DOGE has a lot going for it and that simply has not yet been priced in.\u201d<\/p>\n Either way, DOGE is on the move\u2013and, moreover, altcoin markets are abuzz. Whether or not a \u201ctrue,\u201d capital-A “Alt season” is underway seems to be up for debate. Still, it seems that the winds of change are blowing.<\/p>\n We're in the Phase 2-3 overlap. Large caps are starting to move. Phase 2 has heated up and we're seeing early signs of Phase 3. PHASE 3 incoming! pic.twitter.com\/tCZdNx995c<\/p>\n — Secrets (@SecretsOfCrypto) May 6, 2021<\/p>\n<\/blockquote>\n For one thing, the wealth distribution of cryptocurrency markets seems to be shifting. RockItCoin\u2019s Michael Dalesandro told Finance Magnates that he believes that \u201cwe are starting to see a maturing of the crypto marketplace.\u201d<\/p>\n \u201cBitcoin’s dominance by market cap has dropped from 75% to below 50% in 2021 so more capital is flowing to the opportunities that exist in altcoins which have shown dramatic increases,\u201d he added. \u201cBut I think this is just the usual cooling off we have seen with Bitcoin in the past; I fully expect it to continue its climb.\u201d<\/p>\n Still, the dynamics in the market are shifting\u2013so much so that some analysts believe that crypto markets are in an \u201calt season.\u201d CrossTower\u2019s Chad Steinglass told Finance Magnates that \u201cas BTC has been struggling to find direction for weeks, ETH and many other altcoins have taken over traders\u2019 attention.\u201d<\/p>\n \u201cAfter consolidation in BTC towards the end of April, bulls got their hopes up for an announcement of another company adding BTC to currency reserves during the heart of tech earnings season,\u201d he said. \u201cHowever, earnings reports came and went with no mention of BTC, and in fact, of the major companies that had already been involved, TSLA trimmed their holdings somewhat and MSTR did not add during the recent dip.\u201d<\/p>\n Still, there was \u201csome positive news for BTC this week\u201d when NYDIG and Fidelity announced that they would be \u201cpartnering to offer crypto services to retail bank customers,\u201d a factor that Steinglass believes will \u201cfurther the narrative of mass adoption.\u201d<\/p>\n Benjamin Leff, chief operating officer of Sheesha Finance, told Finance Magnates that \u201cBitcoin has taken a backseat while altcoin season picks up.\u201d<\/p>\n In other words, the strong performances of many altcoins over the last several weeks seem to have drawn an increasing number of investors.<\/p>\n \u201cPeople believe they can make more money in other cryptocurrencies and are looking at short-term plays in order to ride the bull market. Bitcoin is a much more resilient coin that people see more as a store of value than an opportunity to flip and make a quick and hefty profit, or loss depending on what one chooses to invest in.<\/p>\n What are the other cryptocurrencies that may have a higher earning potential than Bitcoin? All eyes this week were on Ether (ETH). The native token of the Ethereum network reached yet another all-time high.<\/p>\n Indeed, this whole year has been a series of new ATHs for ETH\u2013and, as such, ETH has outperformed BTC several times over. Michael Dalesandro told Finance Magnates that \u201cBitcoin is purely a cryptocurrency, whereas Ethereum is a cryptocurrency and <\/em>a decentralised software platform.\u201d<\/p>\n \u201cIt also supports many ERC20 tokens, which I believe is drawing funds away from Bitcoin and toward Ethereum,\u201d he added.<\/p>\n CrossTower\u2019s Chad Steinglass told Finance Magnates that Ether\u2019s rise is \u201cdefinitely a combination of many factors.\u201d<\/p>\n \u201cThe value of ETH that is locked in defi staking pools has reduced the supply of coins available for trading, which has increased its scarcity,\u201d he said. Combined with the anticipation of the move to Eth2.0, \u201cwhich will move the network away from Proof-of-Work and towards Proof-of-Stake and deflationary characteristics, and many investors are looking to accumulate ETH in advance of the changes in the network.\u201d<\/p>\n \u201cLastly, purely from a technical standpoint, any crypto that is making new highs is generating its own buzz and the move can become a self-reinforcing phenomenon, at least for a little while,\u201d Steinglass added.<\/p>\n As ETH continues to surge, XRP\u2013another popular altcoin\u2013is continuing to trade sideways. Some analysts believe that this may be because of the ongoing battle that the currency\u2019s creato, Ripple Labs, is fighting against the U.S. Securities and Exchange Commission.<\/p>\n Indeed, Ripple\u2019s battle with the began in December, when the Commission announced a suit against Ripple Labs. At the time, the SEC claimed that Ripple Labs had unlawfully sold unregistered securities (XRP).<\/p>\n Throughout the duration of the case, Ripple Labs has maintained that Ripple remains a currency\u2013and, at times, it seems that Ripple may be leading in the legal battle. Analysts have claimed that several court victories may have boosted the price of XRP throughout 2020: when the lawsuit hit in December, XRP\u2019s value fell to roughly $0.20. At press time, the price had increased to $1.58.<\/p>\n However, the outcome of the case is still unclear\u2013and, as time goes on, it could be that investors are biding their time before making big decisions about what to do with their holdings. After a peak of $1.91 in April, XRP has traded sideways for most of the last three weeks.<\/p>\n What could the future hold for XRP? Benjamin Leff, chief operating officer of Sheesha Finance, told Finance Magnates that \u201cthere has been discussion that Ripple may go public once the case with the SEC settles,\u201d<\/p>\n Leff also pointed to recent reports of large purchases of XRP. Citing data from Santiment, CryptoSlate reported on April 29th that the number of addresses holding more than 1,000,000 XRP\u2013colloquially known as \u201cXRP whales\u201d\u2013had increased 1.25%. This equated to approximately 19 new \u201cwhales.\u201d<\/p>\n However, the fate of XRP still hangs in the balance of what happens next in court. Chad Steinglass, Head of Trading at CrossTower, explained to Finance Magnates that \u201cXRP has had its ups and downs for quite some time, with a strong cohort of fierce defenders on one side, and often the SEC and long arm of the law on the other side.\u201d<\/p>\n \u201cRecent sentiment that Ripple might survive its current legal battle with the SEC has bolstered the confidence of XRP defenders. Combined with the fact that XRP was delisted from most major US exchanges following their legal trouble, and its quite possible that liquidity is sparse, as well as most of the supply being under the control of a small number of traders. Those two factors can make for volatility spikes and big runs both up and down.\u201d<\/p>\n Regardless of the outcome of the lawsuit in the United States, Ripple Labs appears to be continuing to build its networks beyond the USA.<\/p>\n\n
Bitcoin dominance is falling<\/h2>\n
Bitcoin trades sideways as altcoins soak up investor capital in crypto markets<\/h2>\n
2021 has been a year of all-time highs for ETH<\/h2>\n
Ripple\u2019s court battle with the SEC continues<\/h2>\n
What\u2019s next for XRP?<\/h2>\n