The post Ethereum, Avalanche, and Solana Share the Spotlight in Crypto Investment Growth appeared first on Coinpedia Fintech News
The cryptocurrency market has continued to attract more cash inflows from all over the world. According to a weekly report from CoinShares, cash inflows to crypto investment products reached $2.45 billion last week, thus bringing the year-to-date inflows to around $5.2 billion. While 99 percent was designated for Bitcoin (BTC), the rest was shared among Ethereum (ETH), Avalanche (AVAX), and Solana (SOL).
Crypto Confidence on the Rise
The confidence in the confirmed crypto bull market has significantly increased in the past few weeks. Moreover, Bitcoin price closed above $52,000 for the first time in more than two years. Additionally, Ethereum price has teased $3,000 for the first time since the beginning of the 2022/2023 crypto bear market. Most importantly, the total crypto market capitalization has crossed $2 trillion and sustained in the past few days.
Cautionary Note
According to on-chain data analysis provided by Santiment, the majority of crypto assets have registered heightened open interest (OI) in the past few weeks. Specifically, Bitcoin has crossed the $10 billion mark for the first time since July 2022. Similarly, the altcoin market led by Ethereum, Solana, and Chainlink (LINK) has experienced a significant uptick in Open Interest.
With the majority of the crypto assets having registered notable gains since last October’s breakout, Santiment highlighted that several indicators are pointing to an overbought situation. Based on the Market-Value-to-Realized-Value (MVRV) indicator, Santiment noted that the crypto market has entered a possible reversal zone after four months of a winning streak.
Nevertheless, the crypto market could easily continue on a bullish outlook amid heightened demand from institutional investors and retail traders.