Following a bloodbath, the cryptocurrency market is slowly limping back to normalcy as altcoins signal marginal recovery with XRP, Litecoin (LTC) and Cardano (ADA), leading the way.
Barring few tokens, the digital asset market was trading flat on Monday after a turbulent week in the wake of several headwinds such as crumbling foreign currencies, Chinese economic worries, Elon Musk’s SpaceX selling its entire BTC holdings of $373 million, and bond yields surging to multi-year highs.
The recent market events marked one of the most pronounced price drops in 2023. The aftermath of this decline is still very much in the air, with the market yet to find stable ground. However, amidst the ongoing market rout, altcoins are slithering their way to recover some of the lost ground.
Altcoins Gain Bullish Momentum
On August 21, data analytics firm Santiment took to X noting some of the recovering altcoins such as XRP, Litecoin (LTC) and Stellar (XLM) are showing promising signs of a comeback despite the sector-wide decline in crypto market caps over the past week. However, XLM has lost its gains in the last 24 hours.
According to CoinMarketCap, Bitcoin (BTC) continues to trade in red, falling 0.16% over the past 24 hours to hover around $26,027. On the contrary, the second largest cryptocurrency, Ethereum (ETH) increased by 0.45% in the last 24 hours to trade at $1,671. Despite still trading in red over the past seven days, Ether is trotting its way back to recovery.
On the other hand, several other altcoins are also steadily navigating their way to safety. For instance, XRP, is up 0.86% in the last 24 hours. Some indicators show that this rise has been driven by support from some of the largest holders of XRP, often referred to as “whales.”
In addition to the influence of whales, Ripple, the maker of XRP’s growing chances of winning against the United States Securities and Exchange Commission (SEC), may have added to this uptick. Although the cryptocurrency landscape remains inherently volatile, the confluence of factors such as regulatory developments, technological advances, and institutional involvement may be contributing to XRP’s recent resurgence.
Litecoin Soars Despite Broader Market Downturn
Meanwhile, Cardano (ADA), Tron (TRX), Polkadot (DOT) and Polygon (MATIC) were trading with gains ranging between, 0.5% – 1.10%, in the last 24 hours. In the same time frame, Litecoin (LTC) surged 2.65% to trade at $65.91. Despite the broader market downturn, the recent uptick in the altcoin market suggests some optimism for the digital asset industry.
Recently, IntoTheBlock highlighted stated that despite the intricate market conditions, Litecoin has exhibited significant spikes in recent times, boasting a notable 231.27K in daily active addresses. In addition to being constant, the blockchain’s mining difficulty recently reached a record high, after its most recent halving on August 2, 2023, demonstrating steady ecosystem expansion.
