As Bitcoin Approaches Record Highs, Altcoin Markets Miss $500M

The last two times bitcoin prices hit new all-time highs, the total crypto market capitalization was around $3 trillion. On November 10, 2021, the metric surpassed $3 trillion when BTC hit its all-time high of $69,000.

Total capitalization also approached $3 trillion in March of this year, when the asset hit an all-time high of $73,738.

However, as BTC approaches new price discovery again this week, the total market capitalization remains around $2.5 trillion. This means that altcoin markets are down about $500 billion from previous peaks.

So what’s different?

The main drag on total cap right now is Ethereum, which has been a huge underperformer this year. During the last peak of the bull market, the ETH market capitalization reached $570 billion when the asset reached its peak price of $4,878 on November 10, 2021.

In March of this year, ETH’s market capitalization reached $490 billion and assets exceeded $4,000. However, its market capitalization at the moment is just $317 billion, and prices failed to break the $2,650 resistance, down 46% from their peak three years ago. However, some traders remain undeterred, seeing the lull as an accumulation zone.

$ETH

As mentioned before, 30% of my total portfolio is in Ethereum, not without reason.

Beautiful accumulation. pic.twitter.com/c2iaLgWcEQ

— TraderPA (@Trader1PA) October 29, 2024

Ethereum isn’t the only altcoin dragging its digital feet. Most large-cap crypto assets are down significantly from their peaks. Solana (SOL) is down 31%, XRP is down 85%, Dogecoin (DOGE) is down 76%, Toncoin (TON) is down 39% and Cardano (ADA) is 88% away.

Other previously high-cap altcoins like Polkadot (DOT) have sunk 92% from their peak price, while Shiba Inu (SHIB) is down 78%.

The only altcoin even close to its peak that was in the top ten in 2021 is Binance Coin (BNB), which is 16% away from a new peak price.

This increase in the capitalization of high-end coins comes despite an increase in the capitalization of stablecoins, which is currently $177 billion, up from about $120 billion by the end of 2021. Analyst James Check noted the impact of the market capitalization of stablecoins, stating that it is “actually worse for altcoins”. than it seems

Bitcoin Dominance Reaches 60%

The altcoin crush and lack of momentum for most crypto assets indicate a lack of retail participation at this time.

This is further evidenced by the increase in institutional Bitcoin ETF flows, which have seen over $2 billion worth of inflows over the past five trading days.

Additionally, Bitcoin’s dominance has now surpassed 60% for the first time since March 2021, according to Tradingview. However, some analysts are confident that another season is just around the corner.

The Altseason is about to start at any moment. pic.twitter.com/pHK11MVjF5

— Mister Crypto (@misterrcrypto) October 29, 2024

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