Following yesterday’s downward spiral, most altcoins have recovered nearly completely in the past 24 hours. Ethereum Classic is now trading at $18.88, up from yesterday’s low of $17 based on price data from coinmarketcap.com. What’s interesting about the asset’s price rally is that despite the dropping trade volume, the price is rallying. This could be partially attributed to Grayscale’s ETC holdings.
Based on the above chart, Grayscale’s total holdings have increased in a phased manner. Currently, the holdings have plateaued with the price hitting the peak. Once Grayscale increases ETC holdings, the current price rally is expected to get a boost. Retail traders HODLing ETC for the past 90 days have an ROI of over 150% and this may hit 200% post increase in demand from Grayscale.
In the case of ETC, external factors have an impact on the ROI post 30, 60 or 90 days; however, when it comes to SOL, on-chain metrics are key indicators.
SOL’s price has been up over 12% in the past 24 hours; the asset’s trade volume is rising, just as the case with ETC. SOL has scaled up consistently since the beginning of 2021 due to faster processing speeds and lower fees when compared to other alternatives. What SOL has got over Ethereum is that POH (proof of histroy) is faster and cheaper when compared to POW (proof of work).
Until Ethereum’s network fees drop and remain consistently low, projects like SOL have a higher chance of capturing market share and rallying on top spot exchanges. Besides, partnerships play a key role as well, and recently FTX’s new derivatives exchange Serum has adopted SOL. This may have given the altcoin much-needed boost and the price has hit a new ATH hours ago. It may kick into price discovery mode if trade volume continues increasing.
Based on the above price chart and on-chain metrics, SOL may follow in the footsteps and the narrative of ETH. This is also popular opinion on social media and Crypto Twitter.
Just as ETC and SOL are rallying forward, the momentum is carrying THETA’s price forward. The price was up nearly 8% yesterday, after the bloodbath. And after the following recovery, it is currently at the same level as it was for the last two weeks.
The trade volume has dropped over 40%, and this has not had an impact on THETA’s price. THETA’s price largely relies on the demand across spot exchanges. The price is currently over 15% away from its ATH, which was hit in the last week of March 2021. Once the trade volume increases, it is expected that the price will rally alongside alts like ETC and SOL.