- Bitcoin’s value drop has shifted investor interest towards altcoins, increasing their market share.
- Despite a 55% drop in open interest, altcoins have continued to see growth in market capitalisation.
- The ETH/BTC ratio remains below its yearly average, reflecting persistent struggles for Ethereum since the Merge.
- Analysts suggest potential for altcoin outperformance in the coming months, setting up for a strong fourth quarter.
A report by analysts at Bitfinex shows as Bitcoin’s value fell, the market share of altcoins actually increased, suggesting a shift in investor interest away from Bitcoin and towards other cryptocurrencies.
Related: Ethereum Reaches Its Lowest Price In 2024 As BTC and ETH ETF Inflows Drop to New Lows
Despite a 55% drop in open interest from its peak, suggesting a decrease in speculative trading, altcoins still managed to outperform in terms of market capitalisation growth.
The analysts say the ETH/BTC ratio is still below its yearly average, reflecting Ethereum’s ongoing struggles.
The ETH/BTC ratio, as a proxy for the altcoin market, remains under its 365-day Simple Moving Average, reflecting the broader underperformance of ETH since the Merge.
BitfinexThere are signs that altcoins could outperform in the upcoming months, especially if Bitcoin’s market dominance has peaked, setting the stage for potential gains in the fourth quarter if economic conditions improve.
This divergence suggests a shift in investor sentiment and market dynamics where, instead of flocking to the relative safety of Bitcoin, investors might be seeing potential value or receiving positive signals from the altcoin markets.
BitfinexDaily Transactions on TON Network Reach New Highs
Meanwhile, Dogecoin and Toncoin have both outperformed Bitcoin. While the OG crypto gained 3.3% in the past 24 hours, DOGE climbed 6.5% and TON 5.7%, outshining the rest of the top ten cryptos by market cap.
And the activity on the TON network has surged following Pavel Durov’s arrest in France in late August.
Related: BitTorrent, Quant Defy Odds, Rally 17%, as Swissblock Says Market Fundamentals Solid
As reported, last week The Open Network (TON) surpassed 1 billion transactions and most recent data shows its address count is surging too, reaching 70.3 million as per tonscan.
The price of TON however, hasn’t recovered from the drop since Durov’s arrest, despite the recent gains. TON initially dropped from US$6.80 (AU$10.21) to US$5.10 (AU$7.66) in the days following the arrest and continued the downtrend until it bottomed out at US$4.55 (AU$6.83).
At the time of writing TON sits at US$5.20 (AU$7.81), still down 22% from where it was just a month ago.
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