Building Strength. While broader crypto alts have struggled to catch a bid since mid-April, many are lighting up the charts with green today! Can this rally persist?
GameStop’s announcement this morning to sell 45M shares (15% of GME’s current float) may have extinguished animal spirits for TradFi retail participants for the moment, but crypto degens appear to just be getting the party started…
Base’s DEGEN MemecoinFarcaster memecoin on Base with its own L3View Profile” class=”stubHighlight”>DEGEN memecoin was the top-performing token of note on the CoinGecko Top 300 gainers board, experiencing a healthy pump on a percentage basis and gaining 26% on the day.
Although memes have been one of the top performing crypto asset classes throughout 2024, tokens with actual fundamentals were also in the mix for the top gainers spots today, with holders of the Solana DePIN token MOBILE bagging 21% returns and those of LINK, LDO, and PENDLE experiencing mid-teens gains.
Zooming out beyond the daily price action, however, it is clear to see that these tokens were caught in a downturn when crypto markets rolled over in April and that persistent red days have come to take their toll alts; despite recent strength, many crypto assets are still underwater.
Undeniably, all rallies must start somewhere, and while broader alts have largely bled throughout the past month, gains in BTC are seeding cause for optimism. Crypto’s largest asset is up nearly 20% in May and pressed against its highs from recent weeks, threatening a breakout to establish new all-time highs!
With crypto funding rates for perpetual swaps are remaining cool and supportive for bulls in long positions, there is certainly a possibility that longer-tail crypto assets continue to run from here as degens become increasingly risk-on.
TradFi stock indexes broke out to new all-time highs this week, meanwhile the rolling 90-day correlation between BTC and tech stocks has reached its highest level since August, suggesting that the prices of crypto and equities will continue to rise together if bullish sentiment holds.
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