The crypto market continues to be on fire with values ripping higher across the board this week. But the biggest movers weren’t Bitcoin or meme coins, it was altcoins that are trying to go mainstream.

According to data provided by S&P Global Market Intelligence, Solana (CRYPTO: SOL) is up 21.2% over the past seven days as of noon ET on Friday, XRP (CRYPTO: XRP) is up 67.2%, Cardano (CRYPTO: ADA) has jumped 46.4%, and Stellar (CRYPTO: XLM) is up a whopping 119.1%.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

The SEC and crypto

The biggest reason crypto is moving this week is anticipation President-elect Donald Trump will bring in a more favorable environment in the U.S. The latest push is to replace Securities and Exchange Commission (SEC) Chair Gary Gensler, which Trump said he would do on “day one.”

If that happens, it’s possible some of the SEC’s litigation against the crypto industry will end. XRP, in particular, has been a target and regulatory clarity along with a more favorable environment would be good news. And Stellar is following because of ties it has with XRP’s founders and the use cases it was built for in the financial ecosystem.

Momentum and Bitcoin near $100,000

It’s impossible to overlook the impact momentum is also having on the crypto market. In particular, the momentum of Bitcoin now trading at nearly $100,000. That’s a critical price point that traders watch and the token has been near it for the last day.

Bitcoin is a very different token from these altcoins because it’s not built to be as utilitarian, but it still drives the “vibes” of crypto trading and that’s what’s most important today.

ETFs and fund flows

The final item of note is the potential for more exchange-traded funds (ETFs) in crypto, following Bitcoin and Ethereum into the market earlier this year. There have been applications submitted for at least four Solana ETFs and that could be the start of a rush of ETFs for altcoins like XRP, Stellar, and Cardano, which are among the top 20 cryptocurrencies by market cap today.

ETFs bring in new funds to the industry, which is why investors are so excited about them. They don’t require buyers to know anything about the blockchain or how to use a crypto wallet and they’re also allowable for a number of funds that can’t own crypto directly. The speculation today is that more ETFs would be great for the value of cryptocurrencies.

Has speculation gone too far?

The crypto bull market has been on an absolute tear recently and everything is moving higher as a result. What’s concerning is that the move is coming on speculation that some kind of rule changes or fund flows will be coming, but we don’t know exactly what’s in store from the new Trump administration.

I also think it’s clear the crypto economy is going to largely run on stablecoins, which are now being transacted to the tune of trillions of dollars every month. If crypto is truly going to change the financial ecosystem it will be as a medium of exchange, not a medium of speculation. And that’s why I’m not buying the bump today.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $380,291!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,278!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $484,003!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 18, 2024

Travis Hoium has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Bitcoin, Cardano, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.

Solana and Altcoins Had a Massive Week — Here’s Why was originally published by The Motley Fool

Leave a Reply

Your email address will not be published. Required fields are marked *