Altcoins Takeover Incoming? These On-Chain Metrics | Crypto News
The cryptocurrency market was spectacular for most of the week, with Bitcoin and large-cap altcoins main the charge. While BTC ran up to a new all-time high around $124,100, the other top cryptocurrencies, like Ethereum and Solana, flirted with their former record-high costs.
Most notably, the price of Ethereum continued its optimistic type, briefly touching the $4,800 degree on Thursday, August 14. The latest on-chain data suggests that ETH and other altcoins may only be at the start of an prolonged rally, with the potential to outpace Bitcoin, the world’s largest cryptocurrency by market capitalization.
ERC20 Stablecoin Supply Hits New All-Time High Of Nearly $130 Billion
In a Quicktake post on the CryptoQuant platform, CryptoOnchain shared that the latest data indicators that the market seems to be in the early section of an altseason. This optimistic speculation is based on two main on-chain metrics: the Stablecoin Liquidity and the Bitcoin Dominance (BTC.D) metric.
Firstly, CryptoOnchain revealed that the entire provide of ERC20 stablecoins has witnessed a notable spike, not too long ago reaching an all-time high of around $128.7 billion. Typically, a vital increase in stablecoin provide is often related with elevated liquidity, permitting traders to take new positions in risk belongings like altcoins.
CryptoOnchain added:
Alongside this, lively addresses for stablecoins have damaged past 250K for the first time in historical past, underscoring rising community exercise and circulation ranges typical before major market rotations.
The on-chain analyst also highlighted that the All Stablecoins (ERC20) Exchange Netflow on Binance has witnessed optimistic inflows in latest weeks, surpassing the $67 million mark a number of instances. As CryptoOnchain famous, optimistic exchange netflows usually point out elevated buying energy for traders.
Furthermore, as shown in the chart above, the BTC Dominance metric confronted rejection from its Previous Cycle Bull Run Resistance zone. From a historic perspective, these rejections have coincided with capital rotating from Bitcoin into mid- and large-cap altcoins—an early hallmark signal of the altseason.
Ultimately, the mixture of the elevated stablecoin liquidity and Bitcoin Dominance technical rejection might mark the start of a breakout in the altcoin market. CryptoOnchain famous that a strong Ethereum breakout above its “This Cycle Bull Run Resistance” with a steady downturn for BTC.D can be a key affirmation to look out for.
Altcoins Total Market Capitalization
As of this writing, the altcoin market is valued at around $1.57 trillion, reflecting an over 1% decline in the past 24 hours. According to data from TradingView, the entire capitalization of altcoins has jumped by more than 5% in the past seven days.
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