The month of April was a double-sided one for the cryptomarket, given the two market crashes which occurred in the month. The crypto market crash which occurred on April 22, may be blamed on the Biden Administration’s reported plan to tax capital gains at double the current rate on earnings above $1 million.
Spurring an earlier market crash were rumors that the U.S. Treasury was investigating financial institutions for illicit use of cryptocurrencies. Then, there were also comments about a drop in Bitcoin Hashrate following a Chinese mining accident.
April 30 also serves as an important date in USDCoin’s (USDC) short-spanned history as more tokens were printed on April 30 than at any time in the dollar-backed Stablecoin’s existence, with over $3 billion minted in one fell swoop.
The sudden influx of $3 billion worth of USDC into the cryptocurrency market coincides with a surging altcoin market, evidenced by Bitcoin’s (BTC) descent to its lowest market cap dominance since August 2018. In early January, Bitcoin’s dominance peaked at near 71% and has been on a steady decline since.
Ethereum’s market dominance has risen from 10.79% at the start of the year to 14.7% presently, whereas Bitcoin’s (BTC) market cap has dropped from nearly 70% to the 48.8% figure seen at the time of writing. While May advances, Bitcoin remains the main focus of most investors but Layer 2 solutions, governance, and DeFi are shaping up to be the driving forces of the next Altseason.
Analysts indicate that a sign of an upcoming Altcoin season is when obscure and lesser-known projects start to generate insane profits as traders try to jump on the rising price.
SNM/USD Daily Chart
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