In November, Grayscale Investments’ cryptocurrency portfolio had an 85% increase in market capitalization. Altcoins such as Stellar (XLM), Ripple (XRP), and Decentraland (MANA) drove this increase.
Stellar’s XLM coin emerged as the best performer, increasing by an astonishing 469% in a month. Ripple’s XRP followed closely, gaining more than 262%. Decentraland’s MANA token also contributed heavily, increasing by more than 105%.
The bullish momentum in altcoins is consistent with mounting rumors about an upcoming “altcoin season.” Analysts predict that this trend will continue until early 2025, with Ethereum (ETH) potentially reaching $4,000 on January 20, the day President-elect Donald Trump is scheduled to take office.
On November 30, Bitcoin’s dominance fell below a two-year support line, indicating a shift as investors transferred funds from Bitcoin to altcoins. Estimates suggest that XRP will reach $2.57 by the end of 2024, based on this trend and historical patterns around Bitcoin halving events.
Additional excitement surrounds the prospective approval of XRP exchange-traded funds (ETFs), with 21Shares just filing an application with the United States Securities and Exchange Commission. Analysts believe regulatory changes, like the probable resignation of SEC Chair Gary Gensler and the potential nomination of crypto-friendly Paul Atkins, might pave the way for a more favorable regulatory climate for digital assets.
As the altcoin markets gain traction, Grayscale’s portfolio performance demonstrates the growing confidence in cryptocurrency as a diverse investment opportunity. This tendency could pave the way for major expansion in the digital asset industry.
