Daily Crypto Signals: Institutional Investors Fuel Bitcoin and Ethereum’s Measured Rally
According to recent estimates by industry experts, the cryptocurrency market is going through a careful and planned phase of expansion, with institutional investors driving pace while retail involvement is wary.
Altcoin Season Faces Capital Challenges
Ki Young Ju, the creator of CryptoQuant, has pointed out that the absence of new retail funding is a major obstacle to the expected altcoin season. Ju contends that institutional investors are unlikely to shift their gains into riskier altcoins because their capital is already heavily weighted toward blue-chip assets like Ethereum and Bitcoin.
“For altcoins to reach a new all-time high market capitalization, they will require a significant influx of fresh capital to crypto exchanges,” Ju stated. Trader Willy Woo concurs with this view, predicting that alt seasons will gradually wane with every market cycle.
Bitcoin’s Positive Signs Continue
Bitcoin’s fundamentals remain solid despite recent price declines. According to research firm CryptoQuant, investments made by new Bitcoin holders now make up just over 50% of total money invested, as opposed to over 90% during prior market peaks. This implies that there might be more room for the current bull market to continue.
Institutional interest is still strong, and exchange-traded funds are the key source of inflows. Bitcoin ETF weekly inflows reached a record $3.1 billion in the week ending November 22, which also happened to be the week that the cryptocurrency touched a near-record price of $99,655.50.
Ethereum Hits All-Time High of $22B
With open interest hitting an all-time high of $22 billion, the Ethereum futures market has seen impressive activity. With the Chicago Mercantile Exchange (CME) owning $2.5 billion in ETH futures, this spike suggests increasing institutional interest.
Over the previous week, the two-month ETH futures annualized premium has remained strong at 17%, surpassing 10%. The market is still complicated even though this points to a moderately favorable sentiment. The forced liquidation of $163 million in leveraged long ETH futures contracts between November 23 and 26 brought attention to the possible dangers of market instability.
Notably, during the past 30 days, Ethereum’s onchain activity has grown 47%, with CoW Swap registering a 71% gain and Uniswap volumes rising 62%. With high-performing decentralized apps like Lido, Uniswap, and Aave propelling substantial market activity, the network remains a leading force in decentralized finance (DeFi).
Solana’s Newfound Power
Solana’s network exhibits robust basic development, making it an intriguing example of blockchain growth. Over the last 30 days, the total value locked (TVL) on the blockchain has increased by 48%, with decentralized apps like Jito and Raydium seeing particularly strong performance.
Solana’s fundamentals are still strong in spite of a recent price fall. Raydium, Jito, and Pump.fun are three of the top five DApps in terms of revenue, and they are all part of the Solana ecosystem. However, there is a degree of speculative risk introduced by the network’s reliance on memecoin trading.
Futures show that traders are paying a 23% annualized premium to hold long positions, the highest level in seven months, demonstrating the SOL token’s resiliency. SOL is trading at a 73% discount to Ethereum at its present market capitalization of $113.7 billion, indicating room for expansion.
The NFT Market Is Resilient, Marks $158M in Sales
During the week of November 18–24, the non-fungible token (NFT) market saw sales of $158 million, demonstrating its unexpected strength. Even while this is a 12.7% drop from the week before, it is still far more than the $93 million that was reported in early November.
The market has already surpassed October’s total sales of $356 million, putting it on course for a strong month. The ecology does have certain difficulties, though. Axie Infinity’s parent business, Sky Mavis, recently let go of 21% of its employees, which is indicative of the continued unpredictability in the NFT market.
The decision by Kraken to shut down its NFT marketplace and the intriguing new collaboration between FIFA and Mythical Games to release FIFA Rivals, a blockchain-based soccer game, are two noteworthy market events.
Stablecoin Market Hints at Confidence
The market for stablecoins is expanding significantly; in November, its entire market capitalization increased 9.94% to $190 billion. With a market valuation of $133 billion and approximately 70% of the stablecoin market, Tether (USDt) is still in control.
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