Litecoin, XRP and other altcoins surge, bitcoin “blue chip” sees lull

[ad_1]

While bitcoin and ether were flat on Wednesday, altcoins rose.

Litecoin and XRP were each higher by around 5%, according to Coin Metrics, while the Sandbox token jumped 4%. The price of the Axie Infinity token has increased by around 8%.

On Wednesday, Ripple, the global payments company behind XRP, announced its acquisition of Metaco, a Swiss crypto custody services company. The deal is expected to give Ripple access to clients like Citi and BNP Paribas and expand its presence overseas.

Crypto price action has been relatively subdued over the past month, despite the recent return to volatility due to low market liquidity. Still, the 30-day realized volatility for bitcoin and ether is outside of its all-time low of the year, according to Glassnode.

With that, some investors have shifted their focus from bitcoin to smaller, newer tokens, or “altcoins.” This is a recurring period in the bitcoin cycle known as “altcoin season”. Over the past few months, bitcoin and ether have been seen by many as so-called “blue chip” or “flight to safety” assets in crypto.

“Like macro markets, juggling resilient stock prices with increasingly bleak economic data points, the crypto market is also facing duality. There are signs of foaming,” said Noelle Acheson. , author of the “Crypto is Macro Now” newsletter.

Specifically, earlier this month, ether briefly rallied and the Bitcoin blockchain saw a record high in daily transactions amid renewed interest in memecoins and NFT-like tokens on the network. Bitcoin called ordinals.

“Despite those foamy notes, the activity is low,” Acheson added. “Prices are down more than 10% over the month and volumes are trending down.”

Bitcoin and Ether continued to hover around the flatline on Wednesday at the $27,000 and $1,800 levels, respectively.

[ad_2]