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As lucrative opportunities emerge, investors divert their capital from Bitcoin (BTC) to altcoins.
With Bitcoin’s price stalling near recent highs and perpetual futures funding rates dropping to new lows, market sentiment hints at a cautious approach toward the flagship cryptocurrency.
SOL, BNB, AVAX Attract Investors
Investors’ recent moves signify a redistribution of capital towards altcoins, showing promising growth. They have isolated three altcoins — Solana (SOL), Binance’s Build-and-Build (BNB), and Avalanche (AVAX) — as offering the most promising returns as the price of Bitcoin has remained range-bound in recent days.
BNB has been a standout, with a robust ecosystem encouraging reinvestment through its Launchpool. The Launchpool enables stakers to compound their returns significantly. This cycle has contributed to the BNB token’s breakout above $600.
Solana’s ecosystem saw a remarkable 45% increase in one of its popular memecoins, Dogwifhat (WIF), which touched an all-time high on March 14. Meanwhile, crypto influencer Miles Deutscher noted that Avalanche subnets could push the AVAX token beyond $50 and closer to $100.
“AVAX is really pushing its gaming subnets. I do like AVAX and a break of $50 could actually see AVAX try and push up more towards this $100 level,” Deutscher said.
Read more: 13 Best Altcoins To Invest In March 2024
Emerging from the shadows, ANKR, RAY, and MASK are lesser-known altcoins making their mark with impressive increases in March. ANKR broke free from a long-term downtrend in late February and doubled its price in a month. RAY and MASK have also seen substantial gains following their respective breakouts.
The bullish narrative also extends to Ocean Protocol (OCEAN), APT, and iExec RLC (RLC), with each charting paths to new highs. Ocean Protocol, for instance, broke out from long-term resistance, showcasing the potential for lucrative returns. Similarly, APT and RLC have demonstrated remarkable growth, with RLC nearly doubling its value in March.
Read more: 11 Best Altcoin Exchanges for Crypto Trading in March 2024
Despite the optimism surrounding altcoins, investors must still exercise caution. ALX, the Web3 token of the Axelar Network, surged 30% after it was listed on Binance earlier this month. In contrast, Ronin Network’s RON experienced a price drop in February after its Binance listing. These price reactions exemplify the volatility of altcoin markets.