There are some strong signs of the start of the altseason, where altcoins outperform Bitcoin.
The past two weeks have been impressively bullish for both Bitcoin BTC $69 037 24h volatility: 3.2% Market cap: $1.38 T Vol. 24h: $52.59 B and many of the altcoins, including Ethereum ETH $2 029 24h volatility: 4.8% Market cap: $244.80 B Vol. 24h: $24.16 B , XRP XRP $1.36 24h volatility: 1.8% Market cap: $83.53 B Vol. 24h: $2.54 B , and Solana SOL $85.16 24h volatility: 4.4% Market cap: $48.61 B Vol. 24h: $4.07 B , to name a few.
However, the recent momentum within the market suggests that investors have been shifting focus from the leading digital asset to altcoins.
For instance, US-based spot BTC exchange-traded funds saw $131.4 million and $68 million in net outflows over the past two days, according to data from Farside Investors. BlackRock’s IBIT has been sitting in the neutral zone after its total inflows got close to $57 billion.
On the other hand, spot ETH ETFs in the US continued their inflows for the 13th consecutive trading day. According to data from Farside Investors, these investment products saw $533.8 million in net inflows on Tuesday, July 22.
The crypto community has known ETH-based ETFs for their weak momentum since their launch in July 2024. However, the recent shift shows that institutional investors are also focusing on the next crypto to explode.
Not Just Institutions
The crypto market capitalization is up by over $600 billion since July 1, currently sitting at $3.93 billion, according to CoinMarketCap data.
Moreover, the market’s fear and greed index rose from 50 to 70 in the same timeframe.
And most notably, the decentralized finance total value locked surpassed the $140 billion mark for the first time since May 2022, according to DefiLlama.
Strong interest in DeFi usually hints at a focus on altcoins from both whales and retail investors. In addition to this, Bitcoin’s market dominance declined by almost 5% over the past seven days to 60% while Ethereum’s share increased by 2.7% to 11.4%.
The rest of the market also recorded a 2.3% increase in its dominance.
A clear sign of the shift could be Ethereum’s 63% rally, aiming for the $4,000 mark, over the past 30 days. XRP also surged 72%.
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