With the possible approval of the Ethereum ETF in the US market, Ki Yong-ju, CEO of blockchain analytics company CryptoQuant, shared his views on altcoins. In a recent publication, Yong-ju emphasized the importance of the “Market Value to Realized Value” (MVRV) ratio for Ethereum. The MVRV indicator helps determine whether a cryptocurrency is undervalued or overvalued by comparing its market capitalization to its realized capitalization (the total value of all ETH at their purchase prices).
“We are entering the early phase of the altcoin season. The MVRV of ETH is increasing faster than the MVRV of Bitcoin (BTC), indicating that the Ethereum market is gaining momentum in terms of its fundamentals. Given the current ETF scenario, this could be a period where ETH will attract attention. Historically, when Ethereum rises, other altcoins usually follow suit.”
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While looking at the broader altcoin market, the CEO of CryptoQuant also highlighted the decline in the dominance of meme coins, which reached a 15-month high in March. The dominance of meme cryptocurrencies compares their market capitalization share to the market value of all altcoins.
“It seems that Twitter crypto enthusiasts are moving away from speculative trading towards focusing on fundamentals, reminiscent of the situation a few years ago.”
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