Why Altcoins Like Shiba Inu and MultiversX Blasted Higher Today | The Motley Fool
The cryptocurrency trading week started off with a bang on Monday as many coins and tokens rose in value, at times precipitously.
Some of the biggest gainers were the more-obscure altcoins. For example, Stacks (STX 22.62%) surged with a nearly 42% pop from midafternoon Friday. Other double-digit winners today were Rocket Pool (CRYPTO:RPL) and MultiversX (EGLD 1.79%), both with gains around 14%, and NEAR Protocol (NEAR 10.73%), which rose nearly 11%. Shiba Inu (SHIB 0.11%), meanwhile, advanced by 8%.
New highs, in more than one instance
None of these cryptocurrencies had inherent news pumping their prices higher. Rather, it was the development of some of the major coins pulling the broader market up with them.
It almost goes without saying at this point that crypto king Bitcoin was a major gainer across the period. On Monday, it was particularly lively, topping the $42,000 mark for the first time since early 2022. I’ve said it before and I’ll confidently say it again: Where Bitcoin goes, the rest of the crypto world follows. Compounding that, Ethereum also hit a recent peak today, for a sharp one-two punch.
The lights continue to glow a solid green for crypto investors.
One recent trend that has driven prices up is the development of the 10-year Treasury note’s yield. This all-important benchmark security, considered to be one of the safest investments on the scene (it’s backed by the full faith and credit of the U.S. government, after all) has seen its yield generally shrink recently; it dipped notably last Friday, and hasn’t recovered well.
The diminishing attractiveness of a safe-house investment like the Treasury note increases the market’s appetite for more-risky plays. While cryptocurrencies are well established by now — not only Bitcoin, but little brothers once considered unsubstantial like Shiba Inu — they nevertheless remain volatile and speculative as a group. What we’re witnessing now is an increasing desire for risk on the part of the market.
The ETF Express is coming
The billion-dollar question, naturally, is when this lengthening crypto rally might end. Right now, it still looks like it has at least some gas in the tank, particularly considering the likelihood of more than a few spot crypto exchange-traded funds (ETFs) finally, finally winning regulatory approval at a time when investors are sure to lap them up.
The danger in such a current environment is that some folks are snapping up cryptos almost indiscriminately. They are not all created equal, and as ever, the ones with the best potential (in my view, anyway) are the ones sitting on blockchains that provide useful services. Selection and discernment are key here; investors would do well to buy only the best of this very large bunch.
Eric Volkman has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
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