Bitcoin price performance may allow altcoins to rise

Ether (ETH) took control of the crypto industry with the start of May, and the largest altcoin rose to a record $ 3,450, according to CoinMarketCap data. After that, many analysts suggested that the new “altcoin season” started. Bitcoin (BTC), on the other hand, continues to grapple with resistance in the $ 56-58k range.

Cointelegraph Markets and TradingView data show that Ether gained 54 percent after dropping as low as $ 2,160 on April 25.

Ethereum Price Index: How many TL (ETH TL) for Ether?

4-hour chart of the ETH / USDT pair. Source: TradingView

While crypto investors celebrate this rise of Ether, those who expect a fall could be on the brink of a huge loss. If the price of Ether holds above $ 3,100 until Friday, each of the 76,000 put options that will expire on May 7 will become worthless.

Ether accumulation rates are increasing

According to data from on-chain analytics company Glassnode, the amount of Ether accumulated over the long term has been increasing since the end of 2020. This could be one of the factors behind the months-long rally.

Ethereum HODL waves. Source: Glassnode

The “Ethereum HODL (accumulation) waves” chart above shows that the rate of cryptocurrencies accumulated for more than 6 months is gradually increasing.

Glassnode also said that a large amount of Ether was transported from exchange wallets in 2021. Over the past four months, ten withdrawals exceeding 200,000 Ether per day have been seen, as corporate demand and DeFi penetration have increased.

Ethereum supply in smart contracts and balance in exchanges. Source: Glassnode

The amount of Ether held in exchanges has decreased since September 2020, while the amount of Ether held in decentralized finance smart contracts has increased significantly.

The amount of Ether currently locked in smart contracts surpasses the amount of ETH held in central exchanges.

Altcoins’ performance outshines Bitcoin

While Bitcoin struggles to close daily at over $ 58K, the performance of altcoins strengthens the theory that the altcoin season will begin.

The daily performance of the cryptocurrency market. Source: Coin360

Waves (WAVES) became the star of the day, rising 41 percent to $ 36.41. Ethereum Classic (ETC) also climbed 15 percent to an all-time high of $ 50.90.

Maker (MKR), which reached $ 5,777 with an increase of 17.84 percent in the last 24 hours, became the largest decentralized finance (DeFi) protocol with $ 10.92 billion locked assets.

The total value of the cryptocurrency market was $ 2.26 trillion, while BTC’s dominance was measured at 46.6 percent.

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