Altcoins
Will Ethereum and Solana Bulls Exceed Expectations?
After a six-week run, altcoins are cooling off, leading some to fear the worst. However, in the a send on
Altcoins fall, follow Bitcoin
After posting solid gains and reaching $73,800 on March 13, Bitcoin fell slightly on March 14 and continues to be under pressure at the time of writing. Considering the positive correlation between Bitcoin and altcoins, major altcoins such as Ethereum, XRP, Cardano, and Solana recorded a slight retracement.
Related reading: Bitcoin Collapse Triggered by Failed $1 Billion Hedge Fund Spread Trade: Expert
At the time of writing, Ethereum is far from the $4,090 recorded last week. At the same time, Solana’s uptrend has slowed, with $200 proving elusive for optimistic traders. Meanwhile, XRP, despite strong optimism when prices surged on March 11, is struggling to find momentum and is currently trending lower.
While the altcoin has been withdrawn, the decline in total cryptocurrency market capitalization and the fear that has spread has caused the analyst to remain bullish. Despite the correction, the altcoin uptrend remains and most coins, including Ethereum, Solana and Cardano, could see further gains.
The fundamentals of Ethereum, Solana and BNB are solid
To illustrate, the crypto community remains optimistic about Dencun and its potential to enhance Ethereum and the broader Layer 2 ecosystem. Ethereum rollup platforms, including Base and Optimism, that have enabled Dencun features have seen the benefits of the launching decentralized applications (dapps) on their platforms.
Uniswap Labs, the team behind Uniswap, a leading decentralized exchange, reported that transaction fees on users trading on Optimism dropped further after activation Dencún. This reduction in fees could serve as a catalyst to spur more activity on the chain, supporting prices.
On the other hand, Solana bulls are optimistic. Since September 2023, SOL has experienced a strong uptrend. At spot rates, the currency roared to record new highs in 2024.
With this performance, Solana surpasses Bitcoin and other altcoins, including ETH. Data from CoinMarketCap shows that the SOL is up 15% over the past week, closely tracking BNB, the native currency of the BNB chain ecosystem.
Analysts are looking into the upcoming Firedancer update to further strengthen Solana’s infrastructure and increase its reliability. Meanwhile, regulatory developments in the United States are evolving positively, supporting altcoins, mainly BNB.
Overall, the bullish trend in cryptocurrencies remains even as prices cool. More importantly, even with prices falling, sentiment remains bullish. Last week, CoinMarketCap data Shows that the Crypto Fear and Greed Index is in “extreme greed” territory.
Featured image from Shutterstock, chart from TradingView