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XRP surged to a new all-time high, igniting momentum among classic cryptocurrencies like Ethereum Classic, Litecoin, and Bitcoin Cash.
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This resurgence signals a potential altcoin season, with seasoned digital assets leading the charge post-Bitcoin’s recent peak.
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According to Akshat Vaidya, CIO of Maelstrom, “We’re seeing early signals of an ‘altcoin season’, but it’s not fully underway yet,” highlighting a cautious optimism in the market.
XRP’s record high sparks gains in Ethereum Classic, Litecoin, and Bitcoin Cash, signaling early altcoin season momentum after Bitcoin’s peak.
Classic Cryptocurrencies Rally Following XRP’s Historic Surge
The cryptocurrency market witnessed a notable shift as XRP reached an unprecedented high of $3.65, a milestone seven years in the making. This breakthrough has catalyzed a rally among established altcoins, particularly Ethereum Classic, Litecoin, and Bitcoin Cash, which have all recorded significant gains. Ethereum Classic led the surge with a 20.3% increase within 24 hours, despite still trading substantially below its 2021 peak. This resurgence reflects renewed investor interest in legacy digital assets that have weathered market volatility and regulatory challenges.
Ethereum Classic’s Resilience and Historical Significance
Ethereum Classic’s origins trace back to the 2016 DAO hack, a pivotal event that split the Ethereum community and resulted in a hard fork. The faction that opposed reversing the hack continued as Ethereum Classic, preserving the original blockchain. This historical context adds a layer of narrative strength to its recent price action. Despite being down over 85% from its all-time high, the 20% price jump signals growing confidence among investors who value its foundational role in the crypto ecosystem.
Litecoin and Bitcoin Cash: Early Innovators Reclaiming Spotlight
Litecoin, created by former Google engineer Charlie Lee in 2011, surged to a four-month high, reflecting its enduring appeal as a faster alternative to Bitcoin. Similarly, Bitcoin Cash, born from a 2017 hard fork over block size disagreements, climbed 6.4%, underscoring the market’s renewed appetite for established coins with deep liquidity. Both coins, while significantly below their historical peaks, demonstrate that seasoned cryptocurrencies remain relevant and can attract capital ahead of newer altcoins.
Market Dynamics and Institutional Influence Driving Altcoin Momentum
The recent price movements coincide with a subtle decline in Bitcoin dominance, which remains above 60%, indicating a cautious rotation into altcoins. Akshat Vaidya of Maelstrom notes that while a full altcoin season has yet to materialize, momentum is building, particularly in coins like Ethereum. Institutional interest and favorable regulatory developments, such as the U.S. House passing the GENIUS Act to regulate stablecoins, have injected fresh capital into the market. Sean Dawson, Head of Research at Derive, attributes this influx to “favourable U.S. government policy and well-timed institutional engagement.”
Broader Altcoin Gains and Regulatory Progress
Alongside the classic altcoins, other notable performers include Uniswap, Dogecoin, and Hedera, which rose 17.5%, 11.3%, and 7.6% respectively. These gains reflect a broader market enthusiasm fueled by regulatory clarity and institutional participation. The GENIUS Act’s passage is particularly significant, as it establishes a framework for stablecoin issuance, potentially enhancing market stability and investor confidence.
Conclusion
The recent surge in XRP and subsequent gains in Ethereum Classic, Litecoin, and Bitcoin Cash highlight a pivotal moment for legacy cryptocurrencies. While the market awaits a full-fledged altcoin season, these developments suggest a growing rotation of capital into established altcoins, supported by institutional interest and regulatory advancements. Investors should monitor these trends closely as they may presage broader altcoin market expansion in the coming months.
