You may not have noticed, but over the past 30 days, while the total capitalization of cryptocurrencies has been stable at $2.2 trillion, only 1 of the top 15 cryptos has increased.
Note that out of the top 50 we had some impressive jumps, with 11 out of 34 up 30% or more. Furthermore, it is not possible to find a single “theme”, except perhaps the scalability and interoperability solutions.
It is possible that there are fundamentals behind the pump of some projects, such as Axie Infinity, which launched a native staking, taking a lot of offer out of circulation. However, it is likely that the effect of “buying cheap designs” prevailed.
For example, many startups say that Bitcoin “is expensive” because it has a unit price of $49,000, or its market capitalization of 920 billion. How do you know if the same effect isn’t happening with consolidated projects like Ethereum, Binance Coin, Cardano, XRP, Chainlink, and Litecoin?
Keep track of the dominance indicator, especially Bitcoin + Ethereum
The fight between Bitcoin and Ethereum does not matter for this analysis, but the joint market share of both. Note that in early 2021 there is a peak of 82.5%, and since then the indicator has been falling, according to Coinmarketcap data.
These moves typically happen in periods when investors are “looking for risk”. In practice, it is as if they were buying a “leverage”, betting on the market’s rise. Remember: “in bull markets, everyone is a genius.”
Therefore, in these moments of falling dominance and positive market, smaller currencies are likely to gain prominence.
Young duck likes to explore new territories
If you’ve just entered cryptos, you’re likely to consider you have “lost” the earnings of these more consolidated projects, so you need to find “the new Bitcoin”, or “the new Ethereum”.
Anyone who has been in this for a long time knows that Shiba Inu (SHIB) is a “mania”, and just as it appeared, it can disappear. Obviously, you only learn by losing, and precisely because of this when there is a flood of new entrants, it is normal for the same mistakes to be repeated.
Above we have TheBlockCrypto data of new social media followers of some famous websites and apps. The conclusion? We are on a growing number of new entrants, albeit far from the May “craze” phase after Bitcoin tested the $65,000.
If Coinbase is listing, it’s time to pump
Coinbase is the largest exchange in the world, although Binance cheats with volumes inflated by arbitrators paying zero brokerage.
Whenever we have four or more listings in a 15-day period, it’s an indication that the exchange is running out of steam and desperate for new projects. Therefore, the pumps in smaller currencies should occur in this period.