Ripple’s favorable ruling last week appears to have sparked renewed interest in the broader altcoin market.
According to a new report by Kaiko Research, BitcoinIts dominance–its relative percentage of total market capitalization–dropped by 8% on the 25 largest exchanges this month.
That occasion also sparked a mini altcoin rally last week, led by XRPand other selected altcoins, such as Polygon (MATIC), Solana (SOL), and Stellar Lumens (XLM).
According to the crypto data provider, the dominance of Bitcoin is at a multi-month low, hitting 27% of the largest exchange in the market, a number not seen since April.
Although altcoin investors were quick to celebrate and take advantage of the “alt season” led by XRP last week, Kaiko analyst Dessislava Ianeva SPOKE Decrypt that it would be too easy to consider this a sustained rally.
Although volumes have increased in recent weeks, they remain below the 2020-2021 average, Ianeva said.
“Buying pressures have eased in American markets,” he said Decryptadding that “liquidity continues to be very thin and the full impact of the decision will unfold over the next few months.”
The current environment is particularly volatile in both directions, and Ianeva considered that the “market lacks a clear catalyst,” and pointed to the US government and Bitcoin miners selling swathes of Bitcoin.
After a judge issued a partial ruling somewhat in Ripple’s favor, the XRP token has been on a bumpy ride, enjoying a 45% gain over the past two weeks. The token is currently trading hands at $0.69.
The result, which may see an appeal to the SEC, confirms a great interest in XRP, which according to Kaiko’s research is more emphasized outside the US border.
The report says that the Korean market, one that Ianeva says is “historically altcoin driven” and the second largest for XRP activity has seen an increase in “broad-based” activity – meaning buying whales.
“BTC’s overall longer-term outlook has improved, benefiting from ETF-related flows, if the SEC approves it, and the upcoming halving event,” Ianeva said. “And if inflation continues to soften, the Fed’s tightening cycle is up.”
