Is Cardano’s 2025 Start a Fluke? XRP and Altcoin Market Trends Explained
While Bitcoin tends to dominate market movements, altcoins like XRP and Cardano have also shown signs of life, especially during Bitcoin’s recent rise. Cardano saw a significant jump at the start of the year, rising 32% in the first six days. However, it subsequently experienced a decline as the broader cryptocurrency market corrected. Brian Q. from Santiment. Appeared on the Thinking Crypto Podcast and opened up about altcoin trends.
Altcoin network activity decreases
A worrying trend for many altcoins, including Cardano, is the decline in network activity since early December. Lower trading volumes mean less investor excitement and less institutional participation. While this doesn’t necessarily mean the end of the bull market, it does suggest that the initial enthusiasm has now faded.
Unique coin in circulation shows promise
Despite the decline in network activity, Cardano and a number of other altcoins are still showing healthy signs of unique coin circulation. This could mean that a large number of different coins are being actively transferred, which is a positive sign for the market.
Rebound in the short term, cautious in the long term
In the short term, if Bitcoin stabilizes, there could be a rally as altcoins like Cardano could see some upside. However, the long-term outlook remains uncertain. Many altcoins, including Cardano and Ripple, have seen massive runs over the past year. This could mean some reversion is possible, especially if Bitcoin’s price remains flat in the coming weeks.
Need to be cautious
While Cardano is off to a successful start in 2025, it’s important to keep an eye on the broader trends. Various altcoins are seeing strong performance in the market, but long-term caution is crucial. If Bitcoin does not rebound significantly towards $150,000, altcoins may face some downward pressure as they pull back from their recent highs.
