BTC’s trading dominance eases amid altcoin rally

The lift from altcoins helps reduce domination from Bitcoin in the trading volumes. His weight recedes by 20% since beginning of the year and 8% at Julythanks in particular to the rise from XRP.

While the Bitcoin price is doing better in 2023, trading activity remains moderate. In recent months altcoins have returned to growth. However, regulatory pressure in the US is likely to affect demand.

According to the weekly analysis published by Kaiko, this effect has not yet spread to the crypto markets. It has also spared offshore exchanges. The result is a decline of the domination from Bitcoin about exchanges.

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BTC dominance recedes: altcoins peak, including XRP

The ‘dominanceThe token’s ‘dominance’ over exchanges has increased significantly. reduced this year. Since the beginning of the year, this ratio has given way 20%of which 8% in July.

As a result, it is now close to 27% among the 25 main stock markets. This is the lowest level since April. Several factors explain this trend. Firstly, the decision in favor of Ripple before the courts, which led to a sharp rise in the XRP price and the token’s trading volume.

It’s also the decline in BTC trading activity. This is even truer on offshore exchanges, particularly those based in South Korea. These players have recently seen a spike in altcoin volumes.

Altcoin liquidity up slightly

Another consequence: improved altcoin liquidity. This indicator, measured by the 1% market depth, has seen a slight increase since the beginning of July, notes Kaiko.

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The market depth for the top 10 altcoins by capitalization rose by around $20 million over the month. Note that the measure takes into account price effects due to price increases.

However, “eliminating USD price increases for these assets, liquidity is about the same”, the report states. The trend is nonetheless favorable for altcoins. And the recent token launches participate.

ARKM, new event since Arbitrum airdrop

In July, three tokens made their debut: the decentralized stablecoin GHO fromAavethe startup’s ARKM token Arkham and WorldCoin (WLD), which climbed over 80% on July 24 after being listed on several exchanges. However, it’s ARKM that is currently attracting Kaiko’s attention.

Arkham’s launch was probably the most important token event since Arbitrum’s airdrop in the first quarter”, the company believes.

Start-up proves more complicated for GHO. “Overcollateralized stablecoins are inherently less capital-efficient and often struggle against their more centralized counterparts,” warns Kaiko.

The new stablecoin will have to find its place in a competitive segment where USDT and USDC dominate activity, both on CEXs and their decentralized counterparts, DEXs.

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