Bit is no longer fighting alone, and market funds are gradually flowing into mainstream .
According to data from Quantify Crypto, in the past 24 hours, 185 out of the top 200 cryptocurrencies by market capitalization have seen an increase, with only 15 recording a decline. Specifically, the top 100 cryptocurrencies have seen an average increase of over 8%. Specifically, ETH has broken through $3,400 USDT, with a 24-hour increase of 9.7%; SOL has broken through $260 USDT, setting a new all-time high; the Ethereum Layer 2 networks OP and ARB have both seen increases of over 15%. On social media, many people have exclaimed, "The season has finally arrived!"
Has the season arrived?
Why are rising?
The trading volume of well-known on the chain has decreased, and the community discussion has decreased
Recently, the price of Bit has continued to break new highs, but have not been able to follow the upward trend, and have instead shown weakness, especially those VC-backed facing large-scale unlocking, which has made the market pessimistic about the prospects of in this bull market.
As a result, the market has gradually shifted towards the more equitable token sector, with a large amount of funds flowing into on-chain PVP battles. Although the market capitalization of the former mainstream is not low, their actual liquidity is far behind some of the newly emerging projects. Currently, the daily trading volume of the top 100 tokens by market capitalization has even been surpassed by the newly emerged CHILL GUY.
However, the high-intensity PVP nature of the token market has also made some investors hesitant, and the trend of funds gradually flowing back to has become inevitable. The capital rotation between tokens and has also begun. One of the main reasons for the current rise in is the consensus on the heat of tokens on the chain.
Specifically:
- Top token trading volume: The trading volume of popular tokens such as ai16z, RIF, and uppercase ELIZA has decreased significantly. According to GMGN data, the trading volume of most popular tokens has been halved.
- Community enthusiasm is divided: The discussion and sentiment in the community have also declined. Many people who used to discuss "which token to rush" are now more focused on how to weather the downturn and wait for the next wave of the market.
The reference to the sector has injected new vitality into the market and provided support for the upcoming capital rotation.
SEC Chairman Gary Gensler is about to step down, and are about to celebrate
Since the approval of the Bit and ETH spot ETFs, the crypto market has continued to rise, and investors' attention has gradually shifted to the next cryptocurrency that may enter the mainstream spotlight.
Recently, Bloomberg senior ETF analyst James Seyffart posted on a social platform that "Cboe has submitted 4 Solana (SOL) spot ETF applications to the US SEC, with issuers being VanEck, 21 Shares, Canary Capital, and Bitwise. If the SEC does not reject them, the final scheduled dates for these applications will be in early August next year."
The application for a spot ETF usually requires the submission of two types of documents: S-1 and 19b-4. The S-1 file submitted this time is only a preliminary file for the listing requirement, and the real focus of the review complexity is in the subsequent 19b-4, which indicates that the SOL spot ETF application is still in the early stage.
However, SEC Chairman Gary Gensler has announced on the X platform (formerly Twitter) that he will officially resign on January 20 next year. This change has brought hope for the review of the SOL spot ETF. The new SEC chairman may not want to accelerate the review details, just like the delay in the review of the Bit and ETH spot ETFs until the final use date.
At the same time, Gary's impending departure has also provided breathing space for that have long been under regulatory pressure. For example, Ripple (XRP), which has long been in legal disputes with the SEC, saw its token price surge 30% in a single day after the news was announced.
Under the easing regulatory environment and the dual drive of the SOL spot ETF application, the general rise of has become a matter of course. This dynamic not only provides a positive expectation for SOL, but also injects new vitality into the entire crypto market.
Can continue to rise?
Whether the rise of can be sustained still requires more observation and verification from multiple dimensions.
In addition, based on historical experience, the performance of is often accompanied by short-term heat-driven, but whether they can truly maintain price increases depends on the long-term development capabilities of the projects and the overall market environment. Although the "Altcoin season" has emerged in the current market, if there is a lack of new technological breakthroughs, application landing, or ecosystem development support, this round of performance may be more of a temporary capital rotation and gaming, rather than a trend-based rise.
Therefore, whether for institutional or individual investors, they need to remain vigilant in the face of this round of performance. On the one hand, they need to pay attention to changes in the flow of funds in the market, such as key indicators like on-chain token transfer data; on the other hand, they also need to guard against the risk of pullbacks after short-term gains, especially the capital movements of leading projects, which may become an important indicator for the subsequent market trend.
At present, the "Altcoin season" is still a game of opportunities and risks, and investors should remain calm.
