A new report by Binance Research suggests the market for altcoins may experience a resurgence in the near future.
According to the report by the research division of leading cryptocurrency exchange Binance, the market for altcoins is due to experience an uptick in activity. Binance Research’s February 2020 Global Markets report found a surge in trading volumes for ETH during February, in addition to an increase in total market volume for altcoins.
The report claims that February was a volatile month for cryptocurrency, with bitcoin’s dominance fluctuating from 66% to 61% mid-month, before closing at 64%. Aggregate spot exchange volumes for altcoins increased 69% last month, with ethereum leading the rally. According to the report, the spot market for ETH trading saw a total monthly volume increase of 158.6%.
The report notes,
The top event of the month was ETHDenver, with many hackathon projects on Ethereum building various projects. Many of them highlighted Ethereum’s pending switchover to Proof-of-Stake and the composability of smart contracts built on top of each other.
In addition to rising to volumes, the report cites the fluctuation in bitcoin dominance as an indicator for renewed interest in altcoins.
The report added,
[We] saw some of its highest buy flows in recent months during this time. Flows were not just BTC related, as alts across the board picked up significant steam with traders, perhaps buying in to chase rallies.
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