The drop in the US dollar index led to the bullish rally of cryptocurrencies. Unlike previous bull runs, Ethereum has outperformed Bitcoin, the market’s largest cryptocurrency.
The upward movement of the cryptocurrency market has started again after a long period of stagnation. Global cryptocurrency market value Back above $1 trillion. Bitcoin managed to regain its $20,000 level in the bullish rally of cryptocurrencies. The growth of the price of Bitcoin helped the rise of other cryptocurrencies. Solana, Cardano and tokens related to the Ethereum network also performed very well.
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Upward rally of cryptocurrencies
For the first time in recent weeks, the cryptocurrency market has shown an upward trend. Biggest Cryptocurrencies The cryptocurrency market moved above the $20,500 level for the first time since September 14th on Wednesday morning. This issue indicates the possibility of continuation of upward movement.
Bitcoin is up 7.1% in the last 24 hours, according to data from CoinGecko. The bullish rally of cryptocurrencies pushed the market cap of the cryptocurrency market above $1 trillion. This area is considered a very strong resistance area. The return of the market cap to the limit of 1 trillion dollars promises the beginning of a new bull run.
The fall of the US dollar index
According to experts, the bullish rally of cryptocurrencies has several possible reasons. Among these reasons can be The fall of the US dollar index Cited. dollar index The value of this currency is fiat compared to other world currencies. This index has decreased significantly since the beginning of the week. As the U.S. stock market and cryptocurrency market have become inversely correlated with the dollar in recent months, a decline in the value of the dollar has led to growth in risky assets.
US Treasury Secretary Janet Yellen believes that the government can issue more short-term Treasuries to improve market flexibility. This will lead to an increase in the liquidity of the US dollar. When there is more liquidity in the financial system, the price of cryptoassets increases.
The performance of the largest cryptocurrencies in the market
Most of the time, Bitcoin leads the price of digital assets to rise, but this time, the market’s largest altcoin has outperformed. Ethereum has grown by 14.2% in the last 24 hours. ETH has been the best performer among the major crypto assets.
Cardano, the legacy Layer 1 network that recently successfully underwent the Vasil hardfork, gained around 12.7% during the cryptocurrency’s bullish rally. The sudden strength of the Cardano network is attributed to the liquidation of short market positions.
Due to slow development and technological setbacks, Cardano is priced higher than its fair value in the eyes of many experts. Despite widespread criticism, the 8th largest cryptocurrency market has a strong support community. It is possible that investors are interested in investing in Cardano again.
The growth of liquid staking projects
Other tokens that benefited from the upward rally of cryptocurrencies include: Solana Cited. Like Cardano, Solana reached its lowest price level in the last few months on October 21. The increase in demand from NFT enthusiasts contributed to the rapid recovery of SOL.
Several liquid staking projects such as Lido and Rocket Pool also benefited from the market jump. The bullish rally of cryptocurrencies led to a 15.9% growth in Rocket Pool. Rocket Money is one of the few tokens that has recorded a better performance than Ethereum.
According to data published by Messari, Rocket Money has grown by around 31% since September. The native token of Optimism network named OP grew by 18.4% in the last 24 hours. The token managed to regain its psychological level of $1.
Many active users on the Ethereum network Ecosystem layer 2 have become interested Optimism is currently the largest layer 2 network. In addition to the native Optimism token, other tokens in this ecosystem also experienced significant growth. Among these tokens can be SNX (with a growth of 9.4 percent) and VEL0 (with a growth of 9 percent) pointed out.
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