Ethereum, XRP, EOS, Litecoin: Crypto Markets Bounce Back as Bears Loosen Their Grip
Most of the top 20 cryptocurrencies reported gains Tuesday, as buyers capitalized on an early-week correction that had shaved $5 billion off coin values. The sudden surge in altcoin and tokens pushed bitcoin’s dominance index back below 52%.
Crypto Market Update
With the exception of Tether (USDT), a dollar-backed stablecoin, all major cryptocurrencies were flashing green Tuesday. Ethereum (ETH) rose 5.5% to $134.21, virtually erasing its early-week slump. ETH volumes climbed back above $4.1 billion as smart money continued to absorb the selling pressure. The upsurge in demand for ETH among institutions and whales suggests that the December bottom is well protected.
XRP (XRP), the no. 3 cryptocurrency by market cap, rose 2.8% to $0.3138. The so-called banker’s cryptocurrency continues to defend the 30-cent mark despite three consecutive sessions in the red through Monday. Read more: XRP/USD Subject to One Last Deep Fall Before Buying Activity Returns.
After a brutal drop on Monday, the EOS (EOS) price bounced back 9% to $3.55. That gives the EOS blockchain a total value of $3.2 billion, some $800 million shy of its ICO market cap.
Litecoin (LTC) was the dominant cryptocurrency in terms of gains, climbing 11.8% to $51.92. Litecoin could very easily overtake EOS as the fourth largest cryptocurrency by market cap as it trails the Enterprise Operating System by less than $70 million.
Bitcoin (BTC) extended its rally through the early morning, climbing 2.8% to $3,864.34. The leading digital currency fell to the low $3,700 range at the beginning of the week but managed to protect critical support in the mid-$3,600 range. Read more: Bitcoin Price Stems Decline as Token Surge Suggests Bull Trend Still Intact.
The combined value of all cryptocurrencies improved to $130.9 billion, more than offsetting Monday’s drop. Trade volumes bounced 22% from yesterday’s low to reach $30.6 billion, according to CoinMarketCap.
End of Crypto Winter?
While the crypto bear market shows little sign of abating, the worst of the downtrend may have already passed. The influx of smart money, combined with the relentless surge in trading volumes, suggests that markets are re-basing higher following a brutal two-month stretch.
The tide began to turn in February when bitcoin finally broke out of a six-month losing streak. The emergence of Litecoin and Binance Coin (BNB) as dominant market players further signaled that traders were responding to fundamentals instead of just following bitcoin.
Litecoin is back in vogue as the open-source community continues to improve scalability, fungibility and privacy. A pair of high-profile partnerships with UFC and KPOP have also aided in the recovery. Read more: Litecoin Foundation Announces Two Big Partnerships for Mass Adoption Efforts.
As for BNB, major developments surrounding Binance’s decentralized exchange and Launchpad initiatives have propelled the token into the top ten. This positive trend is unlikely to let up anytime soon as Binance continues to assert itself as the world’s largest cryptocurrency exchange by volume.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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