Altcoins Gaining Substantial Ground as Bitcoin’s Support Advances Towards $50,000

Large-cap altcoins such as ADA and MATIC are marching onto double-digit gains while Bitcoin (BTC) bulls are struggling to push its price above $50,000. Since the May 13 sell-off, Ether and altcoins have experienced a substantial gain while BTC seems to be looking for direction. The highest gain that has shocked investors in recent times has been the 47% Dogecoin (DOGE) rally that kicked off after an announcement by Coinbase claiming that they would list DOGE in the coming months. Another reason for Doge’s rally was a tweet by Elon Musk claiming that Doge developers were working to improve system transaction efficiency.

BTC Experiencing a Reduction in Pace

As altcoins keep making airwaves and surprising investors and crypto users on their potential, the BTC recovery price has not jumped over the $50,000 hurdle yet. In addition, whale wallets that contained at least 1,000 BTC have gone down by 4.7% compared to the preceding month where a rotation into different assets or potential profit taking was seen.

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Chart from Glassnode indicating the decline in number of BTC addresses with a balance of more than 1000 BTC

Data from TradingView reveals that even if the recovery of BTC appears to be slow-paced, Ether (ETH) is on an upwards rally with an 18% gain as seen in an intraday high reaching $4,173 on May 14.

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Chart from TradingView showing the ETH/USDT 4-hour chart.

These gains for ETH come after fundamental developments were put in the works. Data from Glassnode reveals that wallets that hold at least 32 ETH have been on a steady decline recently. This suggests that fewer crypto enthusiasts are leaning towards becoming full validator’s for Ethereum’s imminent proof-of-stake blockchain.

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Chart from Glassnode showing total number of addresses holding 32+ ETH vs. Ether price.

Altcoins Climbing Higher

Advanced crypto users have been recently involved in debates on whether or not the crypto space is experiencing a rage-on for altcoins. The main indicator of this is the sideways trading of BTC that causes experienced traders to focus their attention on altcoins, resulting in the decline of the dominance of BTC.

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This chart from CoinMarketCap shows the Percentage of total market capitalization dominance.

One of the altcoins that has come out to show its might in 2021 has been Polygon’s MATIC which saw its price shoot by 60% in 24 hours to record a new high of $1.75. iExec RLC (RLC) saw its price surge by 45% on May 13, and this uptrend can also be credited to Coinbase for announcing that it would list the token. 

It is also good to note that the price of Ergo (ERG) also increased by 80% while that of Sora (XOR) experienced a 48% rally which brought the token’s price above $800, where it once was.

Image courtesy of pixabay

Edwin Kinoti

Edwin Kinoti

Edwin is a naturally curious person with a deep interest in blockchain, finance and new tech, fields which he dedicates his time to researching and documenting.

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