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- XRP, ADA, ALGO, HBAR, XLM, and other old dinosaur coins (Dino coins) “woke” from a long period of stagnation to record a significant surge in the recent bull run.
- According to analysts, five factors, including the massive involvement of South Korean investors and regulatory clarity, may have fuelled this growth.
In the recent bull run, most Dino coins pulled a massive surprise with staggering growth on their price curve led by XRP. According to our market data, XRP surged by 450% in a single month to add an extra $100 billion to its market cap. Fascinatingly, the asset displaced Tether (USDT) from the third position on the list of the largest cap coins. Even with the recent pullback, XRP still has a market valuation of $133 billion.
Other Dino coins that made a groundbreaking entry into the list of top gainers are Cardano (ADA), which surged by 145% in a month; Algorand (ALGO), which recorded an uptick of 272%; Hedera (HBAR), which printed 533%, and Stellar Lumens (XLM) which had 383%.
Researching the catalysts that propelled the prices to these unprecedented heights, we discovered five possible factors: regulatory clarity, Ripple’s potential win against the US Securities and Exchange Commission (SEC), the massive move by South Korean investors, the involvement of retail investors, and the “Cultish” nature of Dino coins.
Regulatory Clarity
According to Mads Eberhardt, a senior cryptocurrency analyst at Steno Research, regulatory clarity has been one of the main factors in this price growth. Additionally, President-elect Donald Trump’s pro-crypto stance has been a driving factor.
As we reported earlier, Trump pledged to “fire” SEC Chair Gary Gensler during one of his rallies. Days after the election, Gensler announced his resignation, with former Commissioner Paul Atkins expected to take over. According to Eberhardt, this has hinted that there could be less enforcement action against the industry.
Altcoins have long lacked the regulatory certainty that Bitcoin and Ethereum have benefited from. This is especially true for altcoins like XRP, which faced scrutiny from the SEC under Chair Gary Gensler. XRP’s challenges were evident when many US-based exchanges delisted it in late 2020 and early 2021 due to the SEC lawsuit against Ripple.
Ripple Could Win Against SEC
According to eToro market analyst Josh Gilbert, a new SEC chair would likely end the longstanding ligation between Ripple and the Commission. Per his observation, this possibility has significantly increased demand for XRP and positioned the asset for an upsurge.
South Korean Investors Move
10x Research founder Markus Thielen believes that retail crypto trading in South Korea has been a principal factor for this bull run. According to data, retail trading volume reached $18 billion on December 2, becoming the second-highest volume of the year.
We are seeing one of the largest divergences recorded between a relatively mild Bitcoin funding rate at 15% annualized while retail trading volumes in Korea have ramped up to $18bn.
Involvement of Retail Investors
According to Eberhardt, Dino cryptos such as ADA and XRP are household names in the market. Per his observation, retail investors appear familiar with these names and may have even held them in the past.
As retail participation in the crypto market increases, these investors are more inclined to invest in cryptocurrencies they already know.
Cultish Nature of Dino Coins
Investigating the reason behind the recent pump, meme evangelist Murad Mahmudov discovered that the communities behind these Dino or older coins had reached cult status. Similarly, pseudonymous trader Kun believes that the fundamental beliefs of the token’s utility are what have driven their prices this far.
The difference is that XRP holders truly believe in the fundamentals; they aren’t buying them as social cults. If you said to an XRP holder it’s a meme with no fundamentals to back, they would shred you down.
