Altcoin Charge: Dino Coins XRP, TRX, XLM, & ADA Huge Comeback
- Long-dormant altcoins like XRP, TRX, and ADA are making a strong comeback, driven by a pro-crypto regulatory environment and increased retail interest.
- Unlike previous cycles, this alt surge is fueled by new money directly entering the market, bypassing Bitcoin. Ethereum is also attracting institutional interest.
- While the current rally is promising, experts warn of potential risks like Bitcoin selling pressure and high funding rates.
After a stagnant 2021, older altcoins, also known as dino coins, like XRP, TRX, XLM, and ADA have roared back to life, surging to new highs. Experts weigh in on the possibility of the long-awaited alt season and whether these so-called dino coins will dominate 2024-25.
Notably, the pro-crypto winds have sparked renewed optimism for the alts sector. This is because underperformers like XRP, XLM, and ADA suffered the most due to the SECs regulatory crackdown. However, with a changing political landscape in the White House and Gary Genslers exit, these coins are catching up. The inauguration of president Donald Trump on January 20th could further propel this rally.
As per experts, a full-blown alt season requires two key ingredients: retail investors and liquidity. When dino coins pump, they bring both these things, he noted. Interestingly, many long-term XRP and ADA holders, burned from the 2021 crash, are entering the space at a rapid pace. This investor cohort is known for asset rotation, one that is on the lookout for cheaper alts rather than taking profits and exiting the market. Their entry can potentially fuel a broader altcoin pump.
Fresh Money Pours into Altcoin
Most importantly, this cycle altcoin surge is fueled by the influx of new money pouring into the market without relying on Bitcoins momentum. This trend is evident in record-breaking altcoin/fiat trading volume alongside low alt/BTC volume. CryptoQuant CEO Ki Young Ju echoed this sentiment, recently emphasizing a dramatic shift in the altcoin markets dynamics.
Additionally, the largest altcoin, Ethereum, is quietly attracting institutional interest, though not at the same pace as other altcoins. Since November 22nd, ETH ETFs have bought 170K ETH, a sign of big money confidence. Bitcoin ETFs, on the other hand, recorded outflows, suggesting a potential shift towards Ethereum.
Despite the optimism, experts flagged some concerns. Long-term Bitcoin holders are aggressively dumping, with selling pressure hitting 370K BTC/month. This could drag down alts. Additionally, high funding rates for alts could trigger a sharp correction.
Looking ahead, navigating the bull run requires a careful approach. Experts cautioned against focusing too much on short-term moves like shorting the market and high-leverage trading. One should consider a potential Bitcoin pullback towards $80K-$85K, which can offer a buying opportunity for alts.
For the long term, Im confident that several alts will pull 5x-10x by Q1 2025, and the current altcoin rally is just the beginning.
Read more: https://www.tronweekly.com/dino-coins-leads-altcoin-charge/
Text source: TronWeekly
