In the July edition of the monthly analysts’ call, the Pico research team provided in-depth insights into the cryptocurrency industry, focusing on the altcoin sector. The team explored global trends, liquidity analysis, and a recent surge in altcoin dominance, shedding light on the impact of these developments on investors.
In a recent development that has captured the attention of cryptocurrency enthusiasts and investors, altcoin dominance has surged to a 4-month high, as reported by Kaiko, a leading blockchain data provider. While Bitcoin remains the largest and most valuable digital asset, altcoins are progressively gaining market share, raising questions about potential impacts on Bitcoin’s supremacy.
The prominent crypto market data provider Kaiko shared a Twitter thread recently, incorporating the research video’s link:
The analysis commenced with thoroughly examining altcoin trade volumes, revealing a significant reduction since the regulatory crackdown and banking crisis in March. The research also highlighted the recent SEC ruling on Ripple which caused a slight spike in volume, generating excitement in the market.
The data from 2019 showed that altcoin trade volumes have dropped compared to the bullish period in 2021 but are still higher than the levels observed in 2019-2020. Interestingly, the ratio of Bitcoin to altcoin trade volume has fallen, historically signaling the potential for a mini Bull Run as traders shift their focus from liquid markets to altcoin markets.
The analysis also revealed intriguing trends concerning altcoin markets in different regions. US exchanges demonstrated a relatively flat ratio of Bitcoin to altcoin trade volume in 2023, while offshore exchanges saw a significant decline in Bitcoin trade volumes. Notably, Korean cryptocurrency exchanges emerged as influential players in the altcoin space, contributing considerably to the market’s recent trends.
Among the altcoins, XRP emerged as the top traded asset, enjoying nearly 100% higher trade volume than its closest competitors, SOL and DOGE. Market depth data revealed Bitcoin’s continued dominance in liquidity, while altcoins experienced a slight increase in liquidity following the recent ruling. This development drove prices up but did not significantly alter the quantity of assets on order books.
The team also analyzed recent cryptocurrency launches, focusing on the highly anticipated World coin launch. Unlike previous token launches that experienced price discrepancies across exchanges, World Coin’s launch demonstrated quick price convergence, indicating potential lessons learned from past experiences. The unique approach of allocating most initial tokens to market makers sets this launch apart in the altcoin landscape.
To sum up, The combined insights from the July analysts’ call and the Kaiko report offer a comprehensive understanding of the dynamic altcoin market. Recent regulatory actions, launches, and liquidity changes have influenced investor sentiment and trade volumes. As the market continues to evolve, investors are urged to approach the altcoin landscape with a well-informed strategy and a focus on potential growth opportunities.
