#比特币突破10万？
Altcoin frenzy! 185 of the top 200 cryptocurrencies by market cap are rising!
According to Quantify Crypto data, in the past 24 hours, 185 of the top 200 cryptocurrencies by market cap have risen, while 15 have fallen. The top 100 cryptocurrencies saw an increase of over 8%, with ETH breaking 3400 USDT, up 9.7%; SOL hitting a historic high, breaking 260 USDT. On social media, the call for an 'altcoin spring' is growing louder.
With SOL at a new high, is the 'altcoin spring' really here?
Analysis of the reasons for the rise in altcoin prices and sustainability
Reason 1: The trading volume of on-chain meme coins has decreased, and community discussion has lowered. Bitcoin rises while altcoins remain stagnant, the market is not optimistic, especially with a large-scale unlocking of VC coins. Funds are shifting towards fairer meme segments, with mainstream altcoins lacking liquidity compared to new meme projects. Currently, the daily trading volume of the top 100 cryptocurrencies is less than that of the newly popular CHILL GUY.
However, the competition for meme coins is fierce, and funds returning to altcoins is inevitable. Part of the reason for this price increase is the decline in the popularity of meme coins, such as ai16z, RIF, ELIZA, etc., with trading volumes dropping and community discussions being low.
The resignation of SEC Chairman Gary Gensler has led to an altcoin frenzy. After the approval of spot ETFs for Bitcoin and Ethereum, the market is looking forward to new mainstream cryptocurrencies. Cboe has submitted applications to the SEC for 4 Solana spot ETFs, and Gensler's departure may accelerate the review process. Ripple is at odds with the SEC, and the token XRP rose nearly 30% in one day.
Regulation and the SOL spot ETF are driving the rise in altcoin prices.
Can altcoins continue to rise?
It remains to be seen. The altcoin market is driven by short-term enthusiasm, and true price increases depend on the long-term development capabilities of projects and the overall market environment. A lack of support for new technologies, new applications, or ecological development may result in the market being a short-term rotation game, leading to unsustainable gains.
Investors need to be cautious. Pay attention to the flow of funds, such as on-chain token transfer data; beware of the risk of pullbacks after short-term gains, especially regarding the funding movements of leading projects.
The 'altcoin spring' presents both opportunities and risks, and investors need to remain calm.
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