Grayscale Investments has experienced a significant increase in its cryptocurrency holdings throughout November, primarily driven by the surge of altcoins such as Stellar (XLM) and XRP. This rise aligns with analysts’ predictions of an upcoming altcoin season, indicating a shift in market dynamics.
Grayscale’s Impressive Growth
Recent data from Cryptorank reveals that Grayscale’s crypto portfolio saw an impressive 85% increase in market capitalization over the past month. This surge illustrates the intense market activity surrounding alternative cryptocurrencies, reflecting the growing interest from investors.
Stellar and XRP Lead the Pack
Among the standout performers, Stellar’s XLM token has experienced an astonishing climb of approximately 469%. Similarly, XRP has posted gains exceeding 262%, showcasing its robust performance in the market. Additionally, Decentraland’s MANA token has contributed to this bullish trend, with an increase of over 105% during the same timeframe. The rally of these altcoins has led analysts to predict that the altcoin season could extend into early 2025, fueled by rising investor confidence.
Ether Projections and Bitcoin’s Shift
Analysts project that Ethereum (ETH) could surpass $4,000 before January 20, when President-elect Donald Trump takes office. A key indicator of this escalating trend is Bitcoin’s dominance, which has recently dipped below its two-year support line as of November 30. This decline is interpreted as a sign of profit-taking by Bitcoin investors, leading to a reallocation of funds into altcoins.
XRP’s Potential Rally
Ryan Lee, the chief analyst at Bitget Research, forecasts that XRP could rally to $2.57 by the end of December. He bases this prediction on historical growth patterns that often follow Bitcoin halving events. Lee noted, “Historically, XRP has shown significant growth around 228 days after a Bitcoin halving.” Moreover, there is speculation that potential progress on XRP-related exchange-traded funds (ETFs) could serve as a further catalyst for its price increase.
Regulatory Changes and ETF Approvals
On November 1, asset manager 21Shares filed for an XRP ETF with the U.S. Securities and Exchange Commission (SEC), signaling growing institutional interest in the cryptocurrency sector. The upcoming shift in SEC leadership could also impact the regulatory landscape; SEC Chair Gary Gensler is expected to step down on January 20, with former SEC commissioner Paul Atkins—a known pro-crypto advocate—marked as a strong candidate for succession. Analysts believe this change could lead to more favorable crypto regulations and increased ETF approvals, ultimately benefiting the altcoin markets.
Grayscale’s Bitcoin ETF Options
In a related development, Grayscale Investments is preparing to launch options trading on its spot Bitcoin ETFs, scheduled for debut this Wednesday. This strategic move follows a surge in investor interest, indicated by BlackRock’s iShares Bitcoin Trust (IBIT), which saw record-breaking trading activity—nearly $1.9 billion in notional exposure on its first day. The impressive performance included 354,000 contracts traded and a notable 4.4:1 call-to-put ratio, demonstrating high demand for Bitcoin options.
Ripple’s Potential Market Expansion
Additionally, reports suggest that the New York Department of Financial Services (NYDFS) is poised to approve Ripple Labs’ RLUSD, an overcollateralized stablecoin pegged to the U.S. dollar. Ripple anticipates launching this stablecoin as early as December 4, which would allow it to operate within New York’s stringent regulatory framework, thereby solidifying its position in the broader stablecoin ecosystem. Ripple’s core business revolves around RippleNet, a decentralized payment network designed to offer a faster, cost-effective alternative to existing banking systems like SWIFT, and while closely tied to its native cryptocurrency XRP, Ripple faces ongoing legal scrutiny in the United States.