The cryptocurrency market is experiencing a surge, with Bitcoin reaching a new all-time high and meme coins like WIF, PEPE, and FLOKI seeing triple-digit gains. However, a recent report by AMBCrypto, a leading cryptocurrency news platform established in 2018, warns of potential overheating as the Crypto Fear & Greed Index remains elevated.
While Bitcoin smashed records in March, analysts believe we haven’t reached the true ATH yet. Many analysts are calling the next significant ATH for Bitcoin at $100,000. Lots of traders sold out when BTC hit that historic ATH in March. AMBCrypto said that the $70,000 level is a good liquidity level for Bitcoin and has been tested as resistance multiple times.
Obviously the arrival of Bitcoin spot ETFs has been a major boost for the cryptocurrency, with inflows of $12.1bn in the first quarter. AMBCrypto said the good news is that most of the investors holding BTC in their portfolios are profitable, at the moment. As per its Supply in Profit metric, on 1 April, 18m addresses were in profit; this was an increase of 3m from its cycle-low of 15m. Not bad.
The rise of DePIN
DePIN (Decentralized Physical Infrastructure Network) is predicted to be a major trend in 2024-25. In the past month, meme coins like WIF, PEPE, and FLOKI saw a big surge in their prices, doing even better than popular ones like DOGE and SHIB. Many traders saw their investments surge by triple digits. The trading activity, consequently, reached a peak last seen in November 2021.
Analysts predict that during 2024-25, DePIN will be the most important trend in the crypto world. Since the start of 1 January 2024, the DePIN market cap has grown by $35,370.826 million. Solana saw the most significant rise in trading volume among major DePIN projects, with a notable increase of 52% over the past 30 days.
Ethereum’s future prospects
The Dencun upgrade boosted Ethereum, and the AMBCrypto report predicts a positive outlook with a potential spot ETF on the horizon. With the Dencun upgrade going live in March, Ethereum unlocked a new level for developers’ growth as the scalability-related challenges and gas fees issue were addressed.
Don’t pin too much hope on that ETH ETF story though – fund managers at a recent conference The Armchair Trader attended in London were sceptical about any kind of successful spot ETH launch this side of 2025.
Ethereum’s price has successfully maintained its $3500 support. It reached $4000 recently, the highest point in nearly two years. This could be attributed to various factors, including increased DeFi activity and anticipation of the Dencun upgrade.
NFT market slowdown
While Bitcoin NFTs outperform their Ethereum counterparts, the NFT market overall faces a sales volume and transaction decline, AMBCrypto said in its latest analysis.
According to Alex Casassovici, founder of Web3 streaming project Azarus, we are witnessing the first real bear market for NFTs. Indeed, the NFT Sales Volume in the last 30 days has fallen by 8.50% while NFT transactions have declined by 45.79%. NFT sellers, on the other hand, have increased by 45.25%. This is painting a very bleak picture for the overall market.
Interestingly, AMBCrypto’s report reveals a surprising outperformance by Bitcoin NFTs compared to their Ethereum counterparts.
This news is republished from another source. You can check the original article here