Litecoin, EOS, Binance Coin, Maker: Altcoins Leading the Charge
Crypto valuations experienced a slight pullback Wednesday, though a small contingency of altcoins continued to see impressive gains, a sign that the latest uptrend still had room to mobilize.
Crypto Market Update
Most of the top 20 cryptocurrencies reported losses overnight, raising the specter of a ‘bull trap’ following the latest recovery attempt. The downside risk has since moderated, with a small handful of altcoins reporting gains.
EOS (EOS) gained 4.4% to $3.80, extending an early-week rally that pushed prices to nearly three-month highs. The Enterprise Operating System is up more than 30% since Sunday.
The Litecoin (LTC) price crossed $51.00 for the first time since mid-November, gaining 4.8% in the process. The cryptocurrency has gained a whopping 80% over the past two weeks, which helped to engineer a market-wide rally. Read more: Litecoin Sparks Huge Crypto Rally as Bitcoin Smashes Through $3,700.
Litecoin is benefitting from adoption progress after SpendApp announced it will begin supporting the cryptocurrency at more than 40 million locations. Combined with the anticipated ‘halving’ event in August, Litecoin continues to attract strong bids.
Meanwhile, the meteoric rise of Binance Coin (BNB) continued on Wednesday. The price surged 11% to $10.94, the highest since last August. Binance Coin is benefiting from positive publicity tied to its underlying exchange, including the launch of a new token sale platform.
Maker (MKR), which is comprised of a stablecoin, collateral loans and a decentralized governance framework, rounded out the big gainers on Wednesday. MKR jumped 10.4% to $652.10, placing it in 16th in terms of market cap.
Want an introduction to MKR? Read: What’s Driving Maker (MKR)? High-Priced Coin Outshines Peers.
The combined cryptocurrency market cap is currently valued at $134.8 billion, up from an earlier low of $132.3 billion.
Does the Rally Have Legs?
While appearing sudden, the crypto rally that began on Sunday was actually weeks and perhaps even months in the making. As Hacked predicted before the rally, the sharp rise in coin circulation and overall trading volume, combined with the relative decline in volatility, pointed to higher prices in the near term.
On Tuesday, bitcoin’s 24-hour trading volume topped $10 billion for the first time in ten months. Market-wide volumes spiked above $36 billion, levels not seen since last May. And that’s just what digital exchanges are reporting.
Anyone still doubting whether institutional traders are accessing crypto should pay close attention to private bilateral contracts. This private market has scaled up to between $125 million and $500 million per month in the last half year, according to Bloomberg. Recent activity shows that traders have zeroed in on the $4,200 price target, and some are betting large sums that bitcoin can top this level by the spring.
Bitcoin is currently trading just above $4,000 on Bitfinex. While its share of the overall market has declined over the past 48 hours, it is by far the biggest bellwether for cryptocurrencies. Where bitcoin goes, the market follows.
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.
Featured image courtesy of Shutterstock.