Investors shifting away from Ethereum
Cryptocurrency investors have been steadily shifting away from Ethereum since March, according to CoinShares’ Digital Asset Monthly Fund Manager Survey, while transferring funds to these three cryptocurrencies, which have potential positive spurs shortly.
Moreover, the research showed that Bitcoin positions “have moved little” as investors “are progressively adding to altcoins.” This time around, it was discovered that little over 20 % of investors had put money into Ethereum, compared to 25 % in March.
Altcoins are getting more interest from investors.
Cardano investors increased their allocations from 5 % to 12 %, and those who invested in the cryptocurrency XRP increased their allocations from 4 % to 6 %. Similar to this, Polkadot investors increased from 9 % to roughly 13 % of the total.
Etherium rival Solana ( SOL ) saw a huge reduction in investors from 4 % to 1 % and a spike in speculators.
As a result of Bitcoin’s rising correlation to tech companies and uncertainty about its genuine diversification benefits, the research says that diversification is still “a key justification for investing in digital assets, but it has dropped.”
Cardano recently overtook XRP to become the sixth-largest cryptocurrency by market value, as per the research. The number of native assets created on the Cardano blockchain has now surpassed 5 million, more than doubling from the end of last year. Over 54,800 policies on Cardano today use 5.01 million native assets.
According to data, ADA whale transactions have also surged to a four-month high following the cryptocurrency’s price drop to a low of $0.40 earlier this year. In anticipation of a pending hard fork that will enhance the network’s performance, whales appeared to be buying the dip. A massive improvement is expected with the upcoming hard fork, known as the Vasil hard fork.
Jed McCaleb, a co-founder of Ripple, has sold more than 450 million tokens this year and still has more than 220 million in his wallet, which has had a detrimental impact on the price of XRP.
The SEC’s lawsuit against Ripple and two of its officials, alleging that the company and the executives “raised over $ 1.3 billion through an unregistered, ongoing digital asset securities offering,” is also hurting XRP’s value.
According to their forecast, cryptocurrency industry analysts expect XRP’s price to reach $ 2.55 by the end of the year and $ 3.61 by the end of 2025, before rising to $ 4.98 by 2030.
Technicals of ADA, DOT, and XRP
As per charts, Cardano ( ADA ) has been consolidating between the levels of $ 0.4 on the downside and $ 0.7 on the upside.
When we look at the Polkadot ( DOT ), it has been consolidating between the levels of $ 8.5 and $ 12 on the upside.
Ripple ( XRP ) has also been stagnating between the levels of $ 0.37 on the downside and $ 0.46 on the upper side.