On Wednesday afternoon, ether and bitcoin both continued to rise, as altcoins continued to rule the market. Experts speculate that this could indicate the start of a phase characterised by an increased desire for danger.
On Wednesday, Polygon (MATIC) and Chainlink (LINK) reported double-digit growth. After leading the surge earlier in the week, Solana slowed and lost around 0.7%. SOL has increased by more than 85% within the previous 30 days.
Analysts claim that because leverage is higher, traders are once more taking out loans to fund their bets. This week, Binance introduced the Tether Earn product, which offers lenders an annual percentage payout of 13%.
ETF Wave Fuels Bitcoin, but Altcoins Steal the Rally Spotlight,ETF Wave Fuels Bitcoin, but Altcoins Steal the Rally Spotlight
An incentive programme that may give traders up to a 75% yearly yield on tokens like Solana (SOL) and Ripple (XRP) was launched by GMX and Arbitrum DAO on Wednesday.
CoinShares data indicates that traders are investing more in tiny tokens. Solana received $11 million in inflows last week, while Chainlink brought in $2 million, or 17% of the total assets under administration.
According to statistics from Kaiko, Coinbase has been the main player in net purchasing for Solana, having bought 2.2 million tokens on the market between October 18, when the rise began, and November 6. According to CoinShares statistics, investors also upped their investments in Cardano and Polygon, which witnessed increases of $500,000 and $800,000, respectively, last week.
Backed by lately declining but still high bond rates, bitcoin continues to draw in investors. One contributing cause, according to Noelle Acheson, author of the newsletter “Crypto is Macro Now,” is the ongoing interest for exchange-traded funds.
“It’s evident that the BTC annualised daily basis on Binance is at its highest point since the June rush when BlackRock submitted its proposal for a spot BTC ETF,” Acheson stated.
It’s also important to consider the Bitcoin basis, which represents the premium that is inherent in futures pricing and serves as a mood indicator (a positive basis indicates that traders are bullish about the price’s upward movement).
Craig Erlam, senior analyst at Oanda, stated that although yield-farming excitement may have overshadowed ETF exuberance, macroeconomic factors still hold a lot of power. Erlam stated that investors are fighting against pessimistic economic forecasts and conjecture about rate reduction in the upcoming year, as well as hawkish remarks from central banks throughout the globe.
“It would be unrealistic to expect central banks to say so at this stage as it would confuse and undermine their message that rates must stay higher for longer, even if they were of the opinion that rates could fall next year,” he continued.
ETF Wave Fuels Bitcoin, but Altcoins Steal the Rally Spotlight,ETF Wave Fuels Bitcoin, but Altcoins Steal the Rally Spotlight,ETF Wave Fuels Bitcoin, but Altcoins Steal the Rally Spotlight , Bitcoin Crypto news, Bitcoin News