Altcoin Surge: Ethereum & XRP Soar as Bitcoin’s Dominance Dips!
- The crypto market exploded in November, skyrocketing its market cap to an impressive $3.6 trillion!
- Bitcoin’s dominance dipped to 57% as altcoins surged, signaling that an alt season could be just around the corner.
- The USDT stablecoin supply skyrocketed to a staggering $133.4 billion in November, fueling the bullish momentum.
November was a thrilling month for the crypto space, where Bitcoin (BTC), Ethereum (ETH), and XRP all experienced a monumental price surge, riding the wave of the overall market cap leap from $2.5 trillion to a jaw-dropping $3.6 trillion.
Bitcoin, ETH, XRP, and SOL Soar in Price Amidst Crypto Market Surge
November brought a whirlwind of excitement to the crypto arena, marked by significant regulatory wins and invigorated bullish sentiments. Bitcoin alone rallied 40% during the month, with a key driver being the US presidential election, which saw pro-crypto Donald Trump reclaim victory.
Upon his win, Bitcoin took off like a rocket, obliterating its previous all-time high resistance of $73,097 from March and continuing to shatter records, reaching nearly $99.6K on November 22.
BTC/USDT daily chart
A significant part of Bitcoin’s price jump was powered by an influx of capital into spot BTC exchange-traded funds (ETFs), which saw net inflows of $6.4 billion throughout the month, according to Farside investors data. Notably, asset manager BlackRock’s IBIT led the charge, funneling over $5 billion into the market.
The crypto market roared to life, achieving a staggering market cap of nearly $3.6 trillion, a remarkable increase from the $2.5 trillion in October. Bitcoin and Ethereum stood out as the reigning champions, outperforming US stocks in year-to-date returns.
Bitcoin and Ethereum dominated November returns. US stocks did well too. But everything else performed poorly. Risk assets are back in force. pic.twitter.com/gCViAfbFZc
— ecoinometrics (@ecoinometrics) December 2, 2024
This surge highlights Bitcoin’s increasing sway in traditional investment markets, overtaking familiar assets like the S&P 500. More investors and companies are eyeing Bitcoin as a hedge against inflation, while the fear of missing out (FOMO) is undeniably playing a role.
However, Bitcoin’s dominance took a dip from 61.7% in October to 57.4% in November, hinting that altcoins are gearing up for a potential alt season.
Alt season is an exhilarating period in the crypto market cycle where investors transition their capital from Bitcoin to altcoins, having maximized their profits from BTC.
Interestingly, CryptoQuant CEO Ki Young Ju noted that the surge in altcoin volumes this November wasn’t merely a shift from BTC. Instead, the substantial increase in stablecoin supply indicates genuine investor interest in these assets.
The USDT stablecoin supply climbed over 11% to reach a record high of nearly $133.4 billion in November. This uptick suggests fresh capital is entering the market, driving real demand.
USDT Market Capitalization | CoinGecko
Top altcoins Ethereum, Ripple (XRP), and Solana (SOL) all experienced remarkable gains last month, with XRP leading the charge. Ripple’s XRP staged an astonishing 400% rally, propelling its market cap to an eye-watering $155 billion, surpassing both Solana and Tether to seize the third spot among the largest crypto assets.
This surge in XRP’s value can be attributed to renewed optimism following Donald Trump’s election victory and Gary Gensler’s announcement regarding his resignation as SEC Chair.
Ethereum also basked in the glow of one of its most successful months, rallying 46%. It solidified its dominance in the DeFi ecosystem, witnessing over a 4% increase to a total value locked (TVL) of 19.69M ETH, according to DefiLlama data.
Meanwhile, Solana delivered impressive performance as well, achieving a new all-time high of $263 with a monthly gain of 35%. Additionally, Solana saw a substantial uptick in decentralized exchange volume, peaking at $7.14 billion, fueled by a flurry of meme coin trading activity.
Bitcoin, Altcoins, Stablecoins: Your Burning Questions Answered
Bitcoin is the premier cryptocurrency by market capitalization, designed to function as digital money. This decentralized currency is free from control by any person or entity, enabling transactions without the need for intermediaries.
Altcoins are any cryptocurrencies other than Bitcoin. Some enthusiasts consider Ethereum outside of this category due to its unique properties. Litecoin, for example, is often seen as the first altcoin, a fork from Bitcoin’s original protocol, presenting itself as an “enhanced” option.
Stablecoins are cryptocurrencies aimed at maintaining a stable value, usually pegged to traditional assets like the US Dollar (USD). They serve as a bridge for investors looking to enter or exit the crypto market, while also providing a safe haven from the inherent volatility of other cryptocurrencies.
Bitcoin dominance refers to the ratio of Bitcoin’s market cap compared to the total market cap of all cryptocurrencies. A high dominance typically indicates investor confidence in Bitcoin, often preceding a bullish trend. Conversely, a decreasing dominance suggests capital is flowing to altcoins as investors seek higher returns, often igniting altcoin rallies.
