Altcoins like OKB, FART, BNSOL, JITOSOL, and SOL made significant gains today, shining brightly in the crypto market alongside the impressive rise of ether as it heads towards breaking its record highs.
“Bitcoin saw a modest 0.4% increase today and is currently 2% lower than its levels from 30 days ago, indicating a notable shift in investor focus towards altcoins,” noted Alex Kuptsikevich, the chief market analyst at FxPro.
According to Kuptsikevich, there seems to be a trend of investors selling off Bitcoin to fund their altcoin purchases, a sentiment further supported by the ongoing rally in altcoins and the historic highs seen in the S&P 500 and Nikkei 225 indices.
Market Analysis
- The surge in Ether’s price is attracting fresh capital inflows into CME-listed futures, with open interest in 50 ETH-sized standard contracts rising from 1.5 million ETH to 1.85 million ETH within just a week.
- Traders are showing bullish sentiment as the annualized three-month basis for Ether has exceeded 10%, while Bitcoin’s CME basis hovers around 7.5%.
- Despite Ether’s climb towards all-time highs, the altcoin market remains stable, as indicated by the consistent perpetual funding rates on offshore exchanges, which are mostly around an annualized 10% for major tokens.
- Monero (XMR) has seen an increase in open interest to the highest level since December, despite a price drop to $245, signaling that traders are taking advantage of the price fluctuations.
- On Deribit, there is a noticeable bullish sentiment among Ether traders, with calls at strike $5,000 and above being actively pursued. However, the 30-day implied volatility index for Ether remains steady at around 70%.
- Bitcoin’s implied volatility also remains stable, with demand for higher-strike OTM calls observed on the OTC network Paradigm, particularly for the $160,000 strike.
Token Developments
- OKB surged by a remarkable 200% to hit a record $142 after OKX announced a significant reduction in token supply to 21 million, along with enhancements to its Polygon-powered X Layer chain.
- The upgrades include increased throughput to 5,000 TPS, reduced gas fees, and the addition of gasless USDT withdrawals.
- Eden Network is discontinuing all services, attributing the decision to stiff competition in the MEV relay and block-building sector. Despite early success, Eden faced challenges post-Merge as the market consolidated around a few key players.
- FARTCOIN witnessed a 17% rise as whale wallets with holdings over $1 million increased supply by 2% in 24 hours, while smart money addresses raised their holdings by 3%.
- The daily MACD momentum for FARTCOIN looks bullish, with the token aiming for a breakout above $1.74 if buying pressure persists. Key support levels are around $0.74 in case momentum weakens.
