Smaller cryptocurrencies are starting to pull ahead of bitcoin as traders bet they're next in line to test all-time peaks.
An index tracking the bottom half of the largest 100 digital assets is up about 60% over the past month, beating the 56% advance in bitcoin. During the same period, the overall value of tokens jumped by more than US$800-billion, according to data tracker CoinGecko Coins like ether remain some way off hitting all-time highs, a reflection of the intense focus on bitcoin amid the launch of landmark US exchange-traded funds for the token as well as an upcoming reduction in its supply growth.
That, too, is a positive backdrop for smaller digital assets, according to Jag Kooner, head of derivatives at crypto exchange Bitfinex.“It’s anticipated that the surge in open interest will eventually redistribute toward altcoins as the market’s focus shifts away from bitcoin, further out on the risk curve towards meme tokens, which accounted for a third of the volume on major exchanges last week,” Kooner wrote in a note.