Bloomberg reports that Solana and Terra, two altcoins designed to build decentralized applications and solutions, were among the top-performing assets in the market last week after the already stabilized Bitcoin rally. Here are the reasons behind the rise in altcoins…
Top-earning altcoin projects of the week
Acting as the market leader in the past week, SOL and Luna, with price increases of approximately 28 percent and 22 percent, respectively. became the top-earning altcoins of the week. The rally was accompanied by Bitcoin’s 40 percent jump from January to the end of last week. Despite the easing of bullish trends in Bitcoin, most altcoins have rebounded as investors demand more risk and opt for more volatile options in the market such as SOL and Luna. As we reported on
Kriptokoin.com, this week started off slightly worse in both the Bitcoin and altcoin markets, as the initial currency had already lost 1 percent of its value. In addition, the largest altcoin projects such as AAVE and SOL have lost approximately 2-3% in the last 24 hours.
Whale activity affects Bitcoin price
While this is the case for the altcoin market, Bitcoin is currently “cooling off” after strong performance in March, according to Nexo co-founder Antoni Trenchev. According to the data, however, the market performance of the leading cryptocurrency Bitcoin (BTC) remains relatively calm, while on-chain data shows the increasing activity of whales, large traders and redistribution of active funds.
According to Bloomberg’s analysis, altcoin Solana is most likely leveraging the STEPN Web3 lifestyle Metaverse implementation, which has attracted a lot of attention from cryptocurrency users around the world. STEPN-related GMT tokens have gained more than 200 percent in the past seven days. Luna has also garnered additional attention from the community as the Terra Foundation has purchased more than $1 billion in Bitcoins since the beginning of January to support the UST stablecoin Bitcoins identified as digital gold.
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