Altcoins have been bleeding more than Bitcoin [BTC], even though the latter is the main driver of the crypto market’s sentiment. In total, altcoins have lost more than $200 billion in capitalization, implying that the euphoria around them was short-lived.
Deducing Binance’s market, over 70% of the altcoins broke below the 200-day moving average (MA). Here, it’s worth noting that this share is quickly approaching the 80% mark. For instance, at press time, Solana [SOL] was trading at $89 with the MA positioned at $97.76.
The broader altcoin market’s weakness has been accelerated by macroeconomic uncertainty. Especially after President Trump’s Republicans lost control of the two chambers of the U.S Congress.
Additionally, the Federal Reserve, European Central Bank, and Bank of England raised interest rates this week. This move discourages borrowing capital, which would be used to invest in risk-on assets like alts.
Both Nasdaq and the S&P 500 fell from their latest peaks too, reinforcing a broader weakness, even in the stock market.
The discrepancy between the current altcoin performance and that of mid-August is evidence of shifting market bias. Between August and September, the cap of altcoins rose by $320 billion. However, since then, it has shed 62.5% of what it gained.
Solana’s tokenized RWA market approaches $4.8B
Despite the sharp drop in altcoin market caps, adoption on Solana has been thriving. In fact, the market cap of tokenized real-world assets (RWAs) on the chain hit a new peak level of $4.80 billion.
At the time of writing, tokenized funds led with $3.70 billion, followed by tokenized stocks and commodities at $1.10 billion and $31.90 million, respectively.
These figures are expected to grow even more in the long term. For instance, Backpack [BP] CEO Armani Ferrante, one of the tokenizing platforms built on Solana, stressed opening up the entire global stock market on the Solana mainnet.
However, regulations remain a major hurdle. Especially in the United States after Republicans lost control of both the House and the Senate.
Will SOL outperform a weak altcoin market?
Solana slid after the midterm elections’ outcome, exerting pressure on the altcoin. At press time, SOL was 9.75% away from its 200-day MA. This reading indicated that bears were in control of the market.
Even so, traders are betting on the growing RWA market to help mitigate the downside risk. As such, SOL could be an outlier when the general altcoin market is weak. Bitcoin would also need to be bullish for more confluence though.
Final Summary
- Altcoins have lost over $200 billion in market cap, more than 62.5% of the gains recorded between mid-August and September.
- Solana’s RWA market cap grew to $4.80 billion, led by tokenized funds.
Credit: Source link
