Several major altcoins have begun to show signs of breaking free of Bitcoin’s gravitational pull in recent months, with XRP (XRP), Stellar (XLM), Cardano (ADA) and Bitcoin Cash (BCH) all showing unexpected breakouts in the last week alone.
Hacked’s Mati Greenspan went so far as to suggest the oft-whispered, but rarely seen, altcoin divergence has finally started. But what’s behind the recent altcoin breakouts; and are they representative of a changing tide?
The most obvious point of examination has to be the dip of mid-August, when most, but not all of the market hit bottom (Ethereum suffered more during the dip of September). Ever since then the old patterns have ceased to apply to a handful of bullish alts.
First Dogecoin (DOGE) went on a market defying run towards the end of August, surging over 100% in two weeks. Here at the end of September, DOGE is up 171% since last month’s low, and now finds itself in the market cap top twenty.
In the same month, Holo (HOT) went on a 203% run up until the dip the at the start of September. Then September carried on the trend with alts like RChain (RHOC) doubling in value in the run up to its testnet launch, while Aurora (AOA) surged 411% in five days despite only being traded on two exchanges.
Finally, in the last week we’ve seen XRP attempt a moon-landing after Ripple Laboratories secured several prominent financial institutions on their Ripple Net network. That was followed by breakouts by Stellar and Cardano, which spiked 29% and 15% respectively.
In the last day GAS (GAS) jumped in value by 96% on the back of an Upbit listing, however it had been climbing in value since August, and the recent peak of $10.00 marked 172% growth since the previous month, despite the dip of early September.
As noted in the Cardano coverage from earlier in the week, many of these coins had found themselves extremely oversold, with ADA’s recent recovery coming off the back of a 96% retracement.
More generally, as many, including Mike Novogratz have been saying for some time now, August’s dip might just have been this year’s bottom for the crypto market. Novogratz went on to call Bitcoin worthless, but even a broken watch tells the right time twice a day.
For the last few months now, Bitcoin has successfully floated above the $6,000 range without too much drama. Bitcoin’s relative security at the moment may also be the catalyst that’s sending traders and investors to the altcoin market in search of more volatile action.
Yet, despite all of this, the most major of major altcoins, Ethereum, still appears to be more pegged to Bitcoin than most. Yes, Ethereum showed signs of outpacing Bitcoin throughout September, but in truth is still down since the dip of August.
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