- Bitfinex analysts observe altcoins’ resilience despite Bitcoin’s recent correction.
- The Total3 index hit a new cycle-high market capitalization of $788 billion on March 14, showcasing significant growth and diversification in the altcoin market.
- Ethereum (ETH) struggles to capitalize on the Dencun upgrade, while altcoins continue to perform well.
- Bitcoin experiences a significant 12.5% correction, but Bitcoin ETF flows stabilize, indicating a balance in investment influx.
Altcoins’ Steady Momentum
Despite Bitcoin’s recent correction, alternative cryptocurrencies, or altcoins, have showcased resilience, according to analysts at Bitfinex. The Total3 index, excluding Bitcoin and Ethereum, reached a notable milestone with a market capitalization of $788 billion on March 14, signifying substantial growth in the altcoin sector. While the index has dipped by 14% amidst broader market corrections, its decline remains less severe compared to Bitcoin’s recent turbulence.
The Total3 index’s upward trajectory underscores a shifting landscape in the crypto market, marked by increased investment in altcoins. If the index surpasses its previous record of $837.5 billion, it could signal a transition into a mania phase characterized by heightened investor enthusiasm and significant gains across the altcoin sector, potentially leading to exponential growth in valuations.
Ethereum’s Struggles Amid Altcoin Momentum
Despite the overall positive momentum in the altcoin market, Ethereum (ETH) has faced challenges in capitalizing on recent developments, such as the Dencun upgrade on March 13. Analysts note that ETH’s price has failed to register significant gains, particularly when compared to other performing altcoins. However, on-chain metrics suggest a bullish narrative for Ethereum, as evidenced by the strong performance of Ethereum-based altcoin projects and robust support for ETH/BTC at current levels.
Bitcoin’s Correction and ETF Stabilization
In contrast to altcoins’ resilience, Bitcoin has experienced a notable correction, shedding almost every gain accumulated in the first half of March. The asset’s 12.5% decline marks its second-largest drop since the approval of spot Bitcoin ETFs, with the largest being a single-day decline of 15%. Despite this correction, Bitcoin ETF inflows have stabilized recently, indicating a semblance of equilibrium in investment flows into the market’s leading cryptocurrency.