Traders Switch From Bitcoin To Altcoins Amid Favorable Ripple Decision

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Ripple’s favorable move last week appears to have sparked renewed interest in the broader altcoin market.

According to a new report from Kaiko Research, Bitcoin’s dominance, its relative percentage of total market capitalization, fell 8% across the top 25 exchanges this month.

This occasion simultaneously sparked a mini altcoin rally over the past week, led by XRP, and other select altcoins, such as Polygon (MATIC), Solana (SOL), and Stellar Lumens (XLM).

Bitcoin dominance is at a multi-month low, hitting 27% on the market’s largest exchanges, a number not seen since April, according to the crypto data provider.

Although altcoin investors were quick to celebrate and capitalize on the XRP-led alt season over the past week, Kaiko analyst Dessislava Ianeva told Decrypt that it’s too early to consider this a sustainable rally.

Although volumes have increased in recent weeks, they remain well below the 2020-2021 average, Ianeva said.

Buying pressures have dropped in U.S. markets, she told Decipher, adding that liquidity continues to be very thin and the full impact of the decision will be felt over the coming months.

The current environment is particularly volatile in both directions, and Ianeva sees the market as lacking a clear catalyst, and pointed out that the US government and Bitcoin miners are selling chunks of Bitcoin.

After a judge issued a partial ruling somewhat in favor of Ripples, the XRP token has had a heady ride, enjoying a 45% gain in the past two weeks. The token is now trading at $0.69.

The result, which could see a call from the SEC, confirms high interest in XRP, which Kaikos research shows is even more accentuated outside US borders.

The report says the Korean market, the one that Ianeva says is historically altcoin-driven and the second-largest for XRP activity, saw a slight increase in large-scale activity, meaning retail and whales are buying.

Overall, BTC’s longer-term outlook has improved, benefiting from ETF-related inflows, should the SEC approve, and the upcoming halving event, Ianeva says. And if inflation continues to slow, the Fed’s tightening cycle will peak.

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