- Capital is rotating into other altcoins, led by ETH.
- Ethereum’s TVL increased by 73.78%, indicating high altcoin interaction.
If Ethereum (ETH) rises above $3,900, it could be the catalyst that changes market dynamics and helps the altcoin climb even higher than it is currently doing.
After Bitcoin (BTC) hit an all-time high, ETH is outperforming it. This has led to thoughts that Bitcoin’s dominance may have taken a step back.
Every time this happens, the price of ETH gets better. However, the second most valuable cryptocurrency is not always the only beneficiary of these reversals. In most cases, profits from ETH and BTC will flow into other altcoins.
ETH is scheduled to launch
AMBCrypto analyzed Santiment’s on-chain data to see if this was the case again. According to our analysis, we observed that capital is rotating into other cryptocurrencies. Some of these include Render (RNDR), Fetch.ai (FET), and Fantom (FTM).
We reached this conclusion after evaluating whale transactions worth more than $100,000. As of press time, these large transactions have been occurring since March 5th.
However, the numbers recorded in the last 24 hours are staggering, indicating that the much-anticipated altcoin season is upon us.
Source: Santiment
Altcoin season is a term used to describe market gains when other cryptocurrencies outperform Bitcoin. But what AMBCrypto found out about the aforementioned cryptocurrencies is that they are all ERC-20 tokens.
For those who are unfamiliar, ERC tokens are fungible assets created on the Ethereum blockchain. Therefore, we can conclude that interest in ETH and other assets connected to the network has been high.
As capital continues to flow into these assets, other tokens based on Ethereum may follow. What about Total Value Locked (TVL)?
Locked Assets Prove It’s Time
According to DeFiLlama, Ethereum’s TVL was $55.3 billion. This value represents an increase of 73.78% over the last 30 days.
TVL is an indicator of the state of the protocol. A decrease means there is a lack of liquidity inflow into the protocol. This may also mean that market participants do not trust blockchain enough to generate good returns.
On the other hand, an increase in TVL indicates that participants perceive the project as trustworthy. The network thus enjoys a wave of capital flows that improves its health. The same was true for Ethereum.
Source: DeFILLama
If participants continue to link their assets to Ethereum, TVL could approach previous all-time highs.
Realistic or not, the market cap of FET in ETH terms is:
A rise to $106 billion could also impact the price of ETH. If so, ETH could rise past $5,000 at the peak of the bull market.
Also, other altcoins cannot be left out. For example, FET, which is up 377% in 90 days, may be trending higher. The price of FTM may rise towards $3, and the price of RNDR may also rise.