Leading altcoins rose in value in early November. What is happening in the market
The price of XRP, Solana, Cardano, and other leading cryptocurrencies rose in early November
Investors' capital is partially flowing into alternative cryptocurrencies, but it is too early to talk about a full-fledged "altcoin season", experts believe
Bitcoin rate on November 7 is holding near the $35 thousand mark, but investors' capital is partially flowing into alternative cryptocurrencies or altcoins. The largest coins are growing in price and are ahead of the market leader in terms of growth dynamics.
The XRP token from Ripple Labs has already shown one of the best results of November, adding 14% since the beginning of the month. In the coin's favor is Ripple's partial court victory over the Securities and Exchange Commission (SEC) in a dispute over whether the sale of XRP tokens constitutes an unregistered securities transaction under the agency's purview.
The SEC's legal battle with Ripple Labs has become a cornerstone of the campaign to regulate cryptocurrencies in the U.S., and the litigation itself is still ongoing. A briefing scheduled for November 9 on the remedies for the unresolved issues in the case sparked rumors of a possible final settlement of the SEC's lawsuit.
After Ripple Labs received key approvals to operate and provide services in Georgia and Dubai last week, the XRP exchange rate jumped nearly 10% in a day, the token surpassing BNB (the token of major cryptocurrency exchange Binance) at one point to become the fourth largest cryptocurrency by market capitalization. The XRP exchange rate was at $0.68 on Nov. 7.
According to the Coinglass service, which tracks the wallets of the largest cryptocurrency exchanges, the total volume of forced liquidations of short positions in XRP over the past 24 hours amounted to just under $2 million. This may indicate that the growth of the token was largely due to spot transactions and the active participation of retail investors in the current rally.
A short position involves selling an asset that a trader does not own and borrowing it from the exchange in order to buy it back when the price falls, return it to the exchange, and make money on the price difference. A significant increase in the price of an asset often provokes a situation called a short squeeze, or "short-squeeze": a sharp increase forces traders to close short positions and buy back the asset to return it to the exchange. This in turn provokes even greater price rises.
Other major digital assets, including native tokens of Cardano (ADA) and Avalanche (AVAX) networks, popular cryptocurrency-meme Dogecoin (DOGE), Chainlink network token (LINK), and token of decentralized exchange Uniswap (UNI) also grew by 5-6% over the last 24 hours.
The Solana network token (SOL) remains in the spotlight amid significant rate hikes and last week's Breakpoint conference in Amsterdam, which was attended by dozens of ecosystem application developers. The price of SOL, as of Nov. 7, is $41, and the token has appreciated more than 11% over the past week. The coin is among the top ten largest crypto assets with a capitalization of about $15 billion and has more than tripled in value since the beginning of the year.
NFT marketplace token Blur (BLUR) has risen 30% since the beginning of November. Blur is preparing to distribute 300 million tokens to users on Nov. 20 in the form of airdrop. In addition, the OpenSea platform, Blur's main competitor, has announced that it is laying off 50% of its employees. Over the past three weeks, the price of the token has already risen from $0.15 to $0.27, that is, by 80%, but after OpenSea announced the layoffs on November 3, BLUR rose another 33%.
The market's growth extends to areas such as decentralized finance (DeFi). Interest rates for borrowing stablecoins from Aave, the largest DeFi lending service, have surpassed 10%, according to Aavescan, which may suggest that investors are willing to overpay to finance their trading positions.
- Capital Flows
Bitcoin, meanwhile, is trading in a narrow range near the $35 thousand mark. Ethereum (ETH) generally repeats the dynamics of the first cryptocurrency. On November 7, the price of "ether" is $1.87 thousand.
The superiority of altcoins in terms of dynamics may be a sign that traders continue to transfer profits from the October rally of bitcoin, which rose in price by about 30%, to digital assets with lower capitalization. At the same time, the interviewed experts agree that it is too early to talk about the so-called altcoin season. The so-called Altseason Index (altcoin season index) is at 29%, according to Blockchain Center.
Altcoin season, Altseason, is a slang term for cryptocurrency traders referring to a period of active one-time growth in alternative cryptocurrencies accompanied by massive excitement on the part of retail traders.
If 75% or more of cryptocurrencies show a 90-day percentage return higher than bitcoin, this is also considered altcoin season. The so-called altcoin season index is calculated based on this principle
According to TradingView, bitcoin's dominant market share (the largest crypto asset's share of total market capitalization) fell to 52.6% on Nov. 7 from 54.3% at the end of October, which at the time was a two-year high.
Bitcoin's significant rise last month came amid expectations that the first U.S. exchange-traded funds (ETFs) investing directly in the cryptocurrency would soon be approved. Investor optimism was also boosted by news that the U.S. Federal Reserve (Fed) would suspend interest rate hikes.
Bitcoin has more than doubled in a year from its late 2022 lows amid the collapse of cryptocurrency exchange FTX and related companies. On Friday, November 4, a court found FTX founder Sam Bankman-Fried guilty of seven counts of fraud and conspiracy.
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