Altcoins Surge Amidst Crypto Market Momentum
- Several altcoins are experiencing significant gains as the crypto market prepares for a potential uptrend.
- Bitcoin has seen a slight increase after recent declines that saw it drop to $91,000.
- Stellar (XLM), Uniswap (UNI), and Aave (AAVE) have all surged by over 11% with Bitcoin reclaiming the $94,300 level.
XLM, UNI, and AAVE Tokens on the Rise
XLM is currently trading at $0.5066, marking a nearly 16% increase in the last 24 hours and over 103% in the past week. Stellar’s 24-hour volume surpassed $4.6 billion with a market cap of $14.9 billion.
UNI is priced at around $12.64, showing a 15% increase in the last 24 hours and a 39% surge over the week. Uniswap’s market stands at $7.5 billion with a trading volume exceeding $1 billion.
Aave has also experienced bullish momentum, trading above $198 with intraday highs of $195. AAVE saw a 12% increase in the last 24 hours and a 20% rise over the week.
Altcoin Season Delayed: What’s Causing the Hold-Up?
Despite the positive performance of major altcoins and meme coins, analysts suggest that the altcoin season has not yet arrived. CryptoQuant CEO Ki Young Ju attributes this delay to the changing nature of capital flow into Bitcoin.
According to Young Ju, institutional investors and ETF buyers driving the current Bitcoin rally are less likely to rotate their assets to altcoins. This shift in capital dynamics is hindering the influx of fresh capital into altcoins.
The CEO further explains that while small cap altcoins rely on crypto exchange users for investment, they may struggle to attract institutional investors through ETFs or other investment channels.
If retail FOMO for Bitcoin reignites, there is a possibility of increased exchange user activity, potentially setting the stage for an altcoin season. However, the future growth of Bitcoin is expected to come from ETFs, institutions, and possibly governments rather than retail traders on crypto exchanges.
