Bitcoin price stagnation allows altcoins to keep rising

Ether (ETH) took center stage at the start of a new month and the second-largest cryptocurrency by market cap hit a new all-time high of $ 3,338. This has led many analysts to say that the new “altcoin season” has already begun. Meanwhile, the price of Bitcoin (BTC) continues to find resistance near the $ 56,000 to $ 58,000 level.

Data of Cointelegraph Markets Y TradingView show that since falling to a low of $ 2,160 on April 25, the price of Ether has risen 54% to a new high of $ 3,324 on May 3, after a 12% peak on Monday raised to the main altcoin above the $ 3,300 level for the first time in history.

ETH / USDT 4-hour chart. Fountain: TradingView

While most cryptocurrency traders are celebrating Ether’s price breakout, which has helped the co-founder of the project, Vitalik Buterin, join the cryptocurrency billionaires club, bears are on track to post big losses as Almost all of the 76,000 put option contracts that will expire on April 7 will be worthless if the price of Ether manages to stay above $ 3,100.

And it’s not just Ether the only cryptocurrency that has been doing well lately. In the last 2 months, The altcoin market as a whole has seen its value increase by 119% and shifted the 2017 peak to a new level of support.

Ether HODLing Average Increases

According to Glassnode, an on-chain analytics company, The amount of Ether held long-term has been on the rise since the end of 2020 and this could be a contributing factor in driving the multi-month rally.

Ethereum HODL waves. Fountain: Glassnode

The graph above showing the “Ethereum HODL waves” indicates that “the coins appear to have a maturity of 1 week to more than 6 months from the end of 2020 (blue arrows)”, with the “proportion of coins from 1 month to 6 months progressively increasing in thickness , suggesting that HODLing coins accumulated in the early bull market is still a favored strategy. “

Glassnode also noted that a large volume of Ether has been removed from exchange portfolios in 2021, with 10 cases of withdrawals of more than 200,000 Ether per day in just 4 months as institutional demand grows and the use of decentralized finance (DeFi) grows.

Provision of Ethereum in smart contracts versus balance on exchanges. Fountain: Glassnode

As seen in the graph above, the amount of Ether on exchanges has been declining since September 2020, which coincided with a notable increase in the amount of Ether held in decentralized finance smart contracts.

At the moment, the amount of Ether locked in smart contracts exceeds the amount held in the reserves of centralized exchanges.

Altcoins outperform Bitcoin for now

With Bitcoin still struggling to secure a daily close above $ 58,000, altcoins continue to champion the emerging “altcoin season.”

Daily performance of the cryptocurrency market. Fountain: Coin360

Waves (WAVES) was the star of the day with its token price rising 41% to an all-time high of USD 36.41. Ethereum Classic (ETC) also rose 15% to a new all-time high of USD 50.90.

After rising 17.84% to USD 5,777 in the last 24 hours, Maker (MKR) is now the top-ranked decentralized finance (DeFi) protocol with a total locked value of $ 10.92 trillion.

The total capitalization of the cryptocurrency market is currently USD 2.29 trillion and the dominance rate of Bitcoin is 46.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Each investment and commercial movement involves risks, you must do your own research when making a decision.

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