Amid Bitcoin’s heightened volatility, major altcoins like Ethereum and Solana are demonstrating resilience, outperforming Bitcoin on weekly and monthly metrics. Bitcoin recently dropped over 5% within 24 hours, falling below $100,000 after reaching a record high of over $103,000. In contrast, altcoins have seen only minor declines, with Ethereum and Solana down around 1%.
André Dragosch, Bitwise’s European Head of Research, highlighted this trend, noting that 85% of tracked altcoins outperformed Bitcoin over the past 30 days. According to Dragosch, performance dispersion among altcoins—driven by diverse investment narratives—has reached its highest level since March 2024, reflecting a growing decoupling from Bitcoin.
“Correlations between Bitcoin and major altcoins have dropped significantly,” Dragosch explained, suggesting more opportunities for alpha and outperformance in altcoin markets. This decoupling aligns with an increasing diversity in the drivers of altcoin growth, spanning areas like decentralized finance (DeFi), staking, and blockchain-specific innovations.
Adding to this momentum, global crypto exchange-traded products (ETPs) reported record-breaking inflows of $3.98 billion in the past week, indicating robust investor interest. Ethereum-focused ETPs also saw record daily inflows on Thursday, further emphasizing the strong appetite for altcoins amid Bitcoin’s turbulence.
These developments suggest a potential shift in market dynamics, with altcoins gaining prominence as Bitcoin’s dominance diminishes, signaling an evolving landscape in the cryptocurrency market.