Avalanche and Cardano post double-digit gains amidst growing altcoin rally Avalanche and Cardano post double-digit gains amidst growing altcoin rally
AVAX climbed to $33 on Dec. 9 to become the tenth largest cryptocurrency by market cap.
2 min read
Updated: Dec. 9, 2023 at 5:17 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The crypto market is buzzing with the potential revival of an altcoin season, as evidenced by the impressive performance of various altcoins over the past month amid growing investor interest.
This revival is underpinned by a shift in investor sentiment and interest in altcoins with solid fundamentals and compelling narratives.
The surge in altcoin trading volume since the start of December is signaling a possible shift from the dominance of Bitcoin, as altcoins have begun outperforming the flagship crypto.
The altcoin market’s momentum is also mirrored in changing investor sentiment, with the market mood shifting from fear to greed since late October, as indicated by the Crypto Fear & Greed Index.
Avalanche surges into top 10
Avalanche (AVAX) and Cardano (ADA) posted significant double-digit gains over the past 24 hours, leading the weekend altcoin rally. AVAX, in particular, has surged by over 20% and secured a place in the top 10 largest market caps, based on CryptoSlate data.
This growth can be attributed to its more than 120% gain since early October, elevating its price from just over $9 to around $26, where it consolidated at the beginning of December before surging another 20% on Dec. 9 to $33 as of press time.
Cardano, another top-10 token, jumped over 19% to $0.64, marking its highest level in 18 months and a 75% increase in December alone. The surge in ADA’s price is attributed to the broader cryptocurrency market trend, where capital is rotating from Bitcoin to altcoins, including Cardano.
A key factor contributing to Cardano’s price increase is the record-high Total Value Locked (TVL) in its decentralized applications (dapps), with Lenfi, a lending and borrowing protocol on the Cardano blockchain, showing a significant jump in ADA reserves. This increase in TVL suggests a removal of ADA tokens from active circulation, potentially boosting the price if demand remains high.
Layer-1s in uptrend
The overall altcoin market has grown robustly over the past few weeks, with the total market capitalization, excluding Bitcoin, jumping from $526 billion to $622 billion since Sept. 8.
This rise reflects a heightened interest in altcoins, with several large-cap altcoins like Ripple’s XRP and Solana’s SOL demonstrating significant strength over the past 60 days.
XRP, buoyed by a series of legal victories, has seen a 45% gain, while SOL has rallied over 107%, shedding negative associations and gaining user interest.
Polygon (MATIC) is another noteworthy altcoin, having risen more than 70% since the start of October. Its growth can be attributed to its continuous technological advancements and successful partnerships within the ecosystem.
This potential altcoin season is not just about price surges; it’s about the underlying fundamentals and narratives driving these altcoins. Projects with strong fundamentals and narratives, especially those related to emerging sectors like AI and Web3 applications, are attracting more investor attention and are likely to sustain their growth.
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Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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In this article
Avalanche is an umbrella platform for launching decentralized finance (DeFi) applications, financial assets, trading and other services.
Cardano
$0.92014
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Solana
$186.679
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
XRP
$2.25719
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Polygon
$0.48097
Polygon, a prominent layer 2 scaling solution on Ethereum, has emerged as a multifaceted and scalable platform, enhancing the Ethereum ecosystem’s capabilities.
