In the past week, several altcoins associated with decentralized finance and NFTs have experienced significant growth, with double-digit percentage increases. This is due to a shift in investment from larger cryptocurrencies such as Bitcoin and Ethereum to more speculative tokens like Blur and Arbitrum.
Blur’s Listing on Upbit Spark a Surge in Its Price
Blur, the native token of its namesake’s NFT exchange, has risen by more than 22% after being listed on the South Korean trading platform Upbit. This move coincided with a notable spike in trading volume, with $241 million being racked up in the past 24 hours – a 1,240% increase on the previous day.
This rally represents a shift in sentiment from three weeks ago when the Securities and Exchange Commission (SEC) went on the offensive against altcoins that it labeled securities. After two weeks of Bitcoin’s price remaining below $26,000, it has now risen above $30,000. As a result, traders are starting to shift their focus to trading pairs with lower liquidity.
Arbitrum has seen a 33.2% increase in value over the last 12 days, as more activity takes place on its layer 2 blockchain. The total value locked on Arbitrum-based platforms such as GMX and Radiant has grown by 12.5% and 9.3% respectively in the past week, indicating that traders are eager to take advantage of DeFi yields.
Other altcoins have also posted double-digit gains over the past week as capital begins to flow from larger assets like bitcoin (BTC) and ether (ETH) to more speculative tokens. Near Protocol’s native token (NEAR) spiked by more than 20% after it signed a deal to use Alibaba’s cloud services.
Open interest, a measure of the number of open derivative positions on an asset, has reached its highest level in a year for Bitcoin Cash markets. This suggests that investors are using leverage to support the recent rally.
This surge in altcoins is an exciting development for cryptocurrency enthusiasts and investors alike. It remains to be seen how long this trend will continue and what impact it will have on the broader market.