Balances are changing rapidly in the cryptocurrency markets. Trading volume data released as of January 10 reveals that altcoins account for more than 50 percent of total cryptocurrency trading. The fact that Bitcoin remains at 27 percent and Ethereum remains at 23 percent shows that investors are turning to riskier but higher potential assets in the short term. On-chain data indicates that this trend is not a temporary wave, but may be a reflection of the increase in the general risk appetite in the market.
Altcoin Rally Gains Strength
Many altcoins have performed much stronger than Bitcoin in the last month. Ripple’s registration from the UK Financial Conduct Authority (FCA) pushed the XRP price over 5 percent on a weekly basis. XRP renewed investor confidence with a significant rise on a monthly scale. Similarly, memecoins in the Solana ecosystem, especially WHITEWHALE, experienced sharp rises despite record volumes on decentralized exchanges. Such assets clearly demonstrate how strong speculative interest is.
The Memecoin craze was not limited to Solana. Popular tokens such as BONK and SHIB also recorded double-digit weekly gains. BNB, which belongs to the Binance ecosystem, was supported by the news about the company’s expansion plans in Asia and outperformed the general market.
On the other hand, Polygon’s (POL) “Open Money Stack” announcement, which aims to facilitate fiat-crypto transactions, led to an over 50 percent weekly increase in the token price. On the DeFi side, usage-oriented projects such as Beefy Finance (BIFI) reflected investors’ search for alternatives to Bitcoin’s limited returns.
In parallel with this picture, another recent news also attracts attention. In South Korea, financial regulators introduced transparency and reserve proof requirements for new altcoins to be listed on local exchanges, which has increased the interest in Asian-based projects in particular. This regulation strengthened the perception of “clearer rules, more risk taking” in the markets.
Ethereum Under Liquidity Pressure, Bitcoin Trending Sideways
The increase in the Altcoin Season Index to the level of 38 shows that the momentum in the market has increased but it still remains in the neutral zone. Bitcoin is stuck in the approximately $90,000 band and is trading below its 200-day average. The Fear and Greed Index’s rise to neutral levels indicates cautious optimism in investor psychology.
On the Ethereum front, there is a different picture. While ETH’s market dominance is declining, there are consecutive outflows from US spot Ethereum ETFs. Selling, especially from large funds, makes short-term price discovery of Ethereum difficult. Despite this, Ethereum still remains the main source of liquidity for altcoin markets and surpasses its competitors in terms of transaction volume.
Current data shows that the crypto market has moved from the classic “Bitcoin leadership” period to a more fragmented and risk-oriented structure. Regulatory clarity, memecoin speculation and new use cases are pushing altcoins to the forefront. However, it should not be forgotten that this activity involves high volatility. While the search for short-term gains may seem tempting, the direction of the market can change quickly.
