The cryptocurrency market witnessed significant developments with the approval of the Bitcoin spot ETF, which led to an unexpected rally in altcoins over the weekend. Despite Bitcoin’s initial dominance, approval opened the door for self-custodial investors to shift their focus to alternative assets, creating what is now referred to as “altcoin season.” Bitcoin’s market cap dominance, which rose from 51% on December 28 to over 55% on January 9 in anticipation of ETF approval, dropped sharply after the approval and currently stands at 52.20%. This decline marks the beginning of an altcoin season in which cryptocurrencies other than Bitcoin are now at the forefront.
Altcoin projects SEI and XNO top the charts
Nano (XNO) outperformed terms on the Bitcoin spot ETF. Thus, it emerged as the most trending word in the market. Santiment’s social trends revealed that altcoin Nano dominated the 24-hour trending words with a social dominance of 0.89% in the last seven days. The increase in interest can be attributed to several factors, including successful Nano transactions, increased knowledge about Nano, and the use of Nano in faucets, payments, and development.
Sei Network (SEI) was an altcoin that attracted attention as the 3rd most trending cryptocurrency in the last 24 hours. Backed by leading crypto venture capitalists, this blockchain has seen a 226% increase in the last 30 days. However, SEI tokens are quite densely distributed among a few large holders. Therefore, caution is advised.
Coins offering buying opportunities next week
On the other hand, analyst Justinas Baltrusaitis identified undervalued cryptocurrencies under $1 that offer potential buying opportunities for the coming week. These altcoin projects are as follows:
- Polygon (MATIC): MATIC showed positive momentum and targeted the $1 limit. With a strong start to 2024, key partnerships, and growth in onchain metrics, Polygon remains a cryptocurrency to watch. It is currently trading at $0.87 with a weekly gain of over 5%.
- Cardano (ADA): ADA, often considered a rival to Ethereum, has attracted attention. In particular, it has witnessed a significant increase in the number of wallets and the total value locked. Crypto analyst Crypto ZX sees positive trends in ADA and highlights potential accumulation opportunities. ADA is currently worth $0.55 with weekly gains of almost 6%.
- XRP: Despite facing regulatory challenges and consolidation, XRP remains in the spotlight. For the altcoin, the ongoing SEC case is critical. Additionally, Ripple’s plan to buy back $285 million worth of XRP is affecting its course. XRP is currently trading at $0.57. It is also losing over 3% daily. Therefore, analysts are predicting varying price targets.
The cryptocurrency market experiences both risks and opportunities. Therefore, the approval of the Bitcoin spot ETF has triggered interest in altcoins. Investors are paying attention to market sentiment. Meanwhile, they are considering the potential of emerging cryptocurrencies. As a result, investors are advised to conduct comprehensive due diligence.
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