As someone who has been closely following the crypto market since its inception, I must say that the recent surge of older altcoins, or as some call them “dino coins,” is a fascinating development. I remember holding XRP and ADA back when they were just fledgling projects, and it’s heartening to see them gain momentum again.
Recently, unexpected surges in the value of digital currencies like Ripple, Tron, Cardano, and Hedera, often referred to as “dino coins,” have left crypto enthusiasts astonished. These sudden increases appear to have arisen with little or no significant news, and without any clear catalyst.
So what propelled the massive gains, and will it continue in 2025?
XRP (XRP) is spearheading the resurgence of dinosaur coins, having skyrocketed more than 450% in just a month. This impressive surge has boosted its market capitalization by approximately $100 billion, allowing it to overtake Solana (SOL) and Tether (USDT), placing it as the third-largest cryptocurrency in terms of total value.
The resurgence of older dinosaur cryptocurrency projects, such as Tron (TRX), Cardano (ADA), Algorand (ALGO), VeChain (VET), Stellar (XLM), and Hedera (HBAR), has been fueled by the market’s recent interest in altcoins. In just 30 days up to Dec. 9, these projects experienced substantial growth: Tron rose by 96.7%, Cardano increased by 145%, Algorand jumped by 272%, VeChain surged by 194%, Stellar climbed by 383%, and Hedera saw a remarkable gain of 533%.
Regulatory clarity has been great for altcoins
One significant aspect is the approaching regulatory clarity, which tends to greatly benefit numerous altcoins, according to Mads Eberhardt, a senior analyst at Steno Research.
In regards to cryptocurrencies, the election of Donald Trump and his administration’s pro-crypto stance have played a crucial role in driving altcoins forward, as Eberhardt pointed out.
“Altcoins have long lacked the regulatory certainty that Bitcoin and Ethereum have benefited from.”
He pointed out that this situation, in particular, applies to altcoins such as XRP, which have encountered criticism from the SEC under Chair Gary Gensler. The difficulties faced by XRP became apparent when several cryptocurrency exchanges based in the US removed it from their platforms towards the end of 2020 and the beginning of 2021, due to the ongoing lawsuit between the SEC and Ripple.
“During the 2021 cryptocurrency boom, XRP’s growth was less dramatic compared to the overall market, according to Eberhardt. However, the mood changed favorably after Donald Trump won the 2024 US presidency and a new SEC chair was appointed, providing more clarity on altcoins like XRP. Notably, Paul Atkins, who is associated with the Digital Chamber’s Token Alliance and the Digital Chamber of Commerce, has been suggested as the potential new SEC head.
Investors expect Ripple to win legal battle with SEC under Trump
Josh Gilbert, an analyst at eToro market, concurred, sharing with CryptoMoon that a significant factor contributing to XRP’s surge, as well as lifting other altcoins, was the widespread optimism that the prolonged legal dispute between Ripple Labs and the SEC would finally be resolved.
Back in December 2020, the Securities and Exchange Commission (SEC) took aim at Ripple, a significant player in the crypto or blockchain sector, by filing a lawsuit. The accusation was that Ripple had utilized the XRP token as an unregistered security to garner funds.
On August 7th, a judge ruled that Ripple was only required to pay $125 million in the lawsuit, which is a penalty that’s 94% lower than the Securities and Exchange Commission’s initial demand for a $2 billion fine. This decision brought about celebrations from Ripple as they considered the case closed. However, the SEC chose to contest the verdict, thereby revitalizing the ongoing legal battle.
According to Gilbert’s statement, the general sentiment among investors is that the appointment of a new SEC chair will put an end to Ripple’s prolonged legal struggle and grant approval for its stablecoin. This positive outlook has contributed to a surge in these other established cryptocurrencies, which have been suffering during a long crypto winter.
South Korean investors love altcoins
According to a recent study by 10x Research, founded by Markus Thielen, strong retail cryptocurrency trading within South Korea has been a significant driving factor behind the recent surge in altcoins’ performance.
On December 2nd, retail cryptocurrency transactions reached the second-highest annual level, peaking at approximately $18 billion for the day. This surge was particularly noticeable among South Korean traders, who showed great interest in several altcoins that were experiencing high momentum, specifically XRP, Dogecoin (DOGE), and Stellar (XLM).
Thielen explained that the increase in altcoin trading, along with a moderately low funding rate for Bitcoin, strongly suggests that we might be witnessing the start of an “altcoin rally” or “altcoin boom”.
A significant disparity, among the highest on record, is emerging. This discrepancy stems from a rather moderate 15% annualized Bitcoin funding rate, contrasted with a surge in Korean retail trading volumes that reached an impressive $18 billion.
It’s evident that the activity is centered around alternative cryptocurrencies, and everyone should develop a plan to capitalize on these price fluctuations while maintaining self-control,” he emphasized.
The brands are familiar to retail investors coming into the market
“One explanation for why ‘dino coins’ might have increased more significantly compared to newer tokens that have emerged within the past two years is that these older coins are already well-known brands to individual investors, according to Eberhardt.
In the cryptocurrency world, coins like Ripple (XRP) and Cardano (ADA) have gained significant popularity, so it’s quite possible that regular investors recognize these names and possibly even owned them previously,” he explained.
“As retail participation in the crypto market increases, these investors are more inclined to invest in cryptocurrencies they already know.”
Dino coins are as cultish as memecoins — with a twist
As a crypto investor, I’ve noticed a fascinating pattern in the market: the resurgence of older altcoins can be traced back to the fervent devotion, almost cult-like, within their communities. This observation comes from Memecoin evangelist Murad Mahmudov, who suggests that it’s not just solid fundamentals driving the recent price surges for tokens like XRP and TRON, but a deep-seated belief, sometimes bordering on delusion, among their supporters.
“A strong indication of a successful token is when its supporters become devoted, unpaid advocates, similar to what we’ve observed with projects like Ripple, Chainlink, Cardano, and Dogecoin,” he explained to CryptoMoon.
Nevertheless, anonymously identified trader Kun expressed disagreement with the assertion that the success of price performance can solely be attributed to the popularity or “cult status” of the community. Instead, he argued that it’s the conviction in a token’s utility—whether valid or not—that holds significant importance in the long run.
As a financial analyst, I’d rephrase that statement as follows: “I firmly believe that XRP investors are driven by their faith in the underlying value proposition, rather than being swayed by any sort of social or cultural trends.
If you told an XRP owner that it’s just a joke without any solid foundations, they would strongly dispute and possibly argue with you, as suggested in a post on December 3.
Will dino coins continue upward?
Currently, altcoins seem to be basking in their limelight, causing some investors to worry that this might only be a fleeting success.
However, Eberhardt believes that altcoins are only just getting warmed up.
“I think it is just the beginning of an altcoin season.”
In comparison to Bitcoin, the regulatory landscape in the U.S. is actually more favorable towards altcoins. Additionally, the ongoing decrease in interest rates seems to encourage investors to take on more risk and invest in projects with higher potential returns.
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2024-12-09 18:15