Bitcoin and XRP have recently shown strong gains, while Ethereum and Dogecoin have lagged behind, contributing to lower performance within Grayscale’s portfolios. Memecoins, particularly Dogecoin, have lost their luster, with the sector experiencing a decline of 44.3% year-to-date.
The crypto market is witnessing a revival after a sustained downturn, boasting a current valuation of $2.96 trillion, just $40 billion short of its all-time high of $3 trillion. Major cryptocurrencies like Bitcoin, Ethereum, Ripple, and Dogecoin continue to play significant roles in the market’s dynamics.
Nevertheless, Grayscale has highlighted that only a select few of these assets have yielded profits. Grayscale’s report indicates that Bitcoin and XRP have turned a profit, while Ethereum and Dogecoin have incurred substantial losses over the past year, with declines of 47% and 42.2%, respectively.
This market sentiment often influences where retail and institutional investors decide to allocate their funds. AMBCrypto has conducted an analysis to explain why certain assets are performing well while others are not.
Bitcoin remains a focal point in the crypto space, attracting increased institutional interest, particularly following the approval of Spot Bitcoin Exchange-Traded Funds (ETFs), which collectively hold assets worth $110.3 billion. The discourse surrounding the establishment of a federal Bitcoin strategic reserve has also heightened institutional curiosity.
In contrast, Ethereum’s performance has waned, with its market capitalization currently at $217.4 billion. The ETH/BTC liquidity chart reveals that Ethereum has faced significant liquidity challenges, leading to a substantial drop in its market dominance since January 2024.
Meanwhile, the memecoin sector continues to struggle, experiencing a notable contraction as investors seek more stable assets.