Crypto traders are turning their attention from Bitcoin to other major cryptocurrencies, most especially Ethereum and XRP.

That’s a very good sign, given the beating the assets have taken over the last several weeks.

Analysts at CEX.io, a crypto exchange, say this is a sign of mounting confidence in altcoins.

“These developments indicate potential capital rotation, as investors shift funds from Bitcoin to Ether and other altcoins in anticipation of better performance,” CEX.io analysts said.

Market in flux

Indeed, DL News reported that whales have been piling into XRP this month.

Still, the crypto market is in flux and continues to struggle for momentum. The market has lost 27% of its value since peaking on December 17 and is now at $2.85 trillion.

So, signs of an altcoin resurgence spell relief for crypto investors.

Both XRP and Ethereum dominated trading volumes on crypto exchanges this year, CEX.io analysts noted.

XRP volume leapt more than three-fold on Wednesday, the biggest trading spike for any major cryptocurrency this week.

That increase in volume more than doubled XRP’s crypto dominance to over 8% ― the highest trading dominance for XRP since its price reached an all-time high in January 2018.

On Wednesday, Ripple CEO Brad Garlinghouse said the Securities and Exchange Commission will drop its case against the company. Ripple designed the XRP cryptocurrency to facilitate cross-border payments.

XRP rally

The SEC sued Ripple in 2020 for allegedly breaching US securities law in its sale of XRP to investors.

While Garlinghouse hailed the development as a “resounding victory” and XRP rallied, the bump may not be long-lived.

Analysts at B2BINPay, a crypto business payment provider, told DL News that investor enthusiasm for XRP will depend on “future events.”

For Osama Bari, chief technology officer at D24 Fintech Group, a business payment outfit, an XRP ETF might be the next growth driver for the Ripple-linked cryptocurrency.

“If the SEC drops its appeal against Ripple and an XRP ETF is approved, prices may revisit previous highs or even reach new levels,” Bari said earlier this week.

Ethereum dominance

Ethereum’s market dominance was also boosted this week with a 96% increase in daily trading volume.

Not only that, but Ethereum’s selling pressure has begun to wane even while short-term Bitcoin holders have been ditching the top cryptocurrency.

Market analysts say Ethereum’s reduced selling pressure compared to Bitcoin indicates the former is likely to experience a faster price recovery, at least in the short term.

Crypto market movers

• Bitcoin is down 2.6% over the past 24 hours to trade at $84,162.
• Ethereum is down 2.8% over the same period to about $1,952.

What we’re reading

Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him atosato@dlnews.com.