Why Altcoins Zoomed Higher Again This Week
Are the prices of altcoins ever going to obey gravity? An investor could be forgiven for thinking they'll continue to rocket into space indefinitely, as the long rally in their prices got even longer this week. While not every altcoin enjoyed such a rocket ride, more than a few ballooned in price.
For example, according to data compiled by S&P Global Market Intelligence, BNB saw a double-digit gain rising by 16% over the period. Ditto for multiverse digital currency MultiversX and transaction bundling-chain Optimism's token, both of which advanced by the same percentage. A near double-digit gainer was Theta Network, with its nearly 10% increase.
Numerous factors were behind the continued rise of altcoins, but perhaps the most significant one is reallocation. Data crunched by crypto-trading analysis platform developer Coinalyze from January 2022 to the present revealed sharp gains in open interest (the number of trades that have not yet been closed) for altcoins, with a corresponding drop in that for the original and most popular crypto, Bitcoin (CRYPTO: BTC).
Source Fool.com
