XRP and BNB Lead the Altcoin Momentum, While ETH Faces Pressure

The crypto market is once again buzzing, but this time, it’s not Bitcoin stealing the spotlight. Instead, altcoin momentum is gaining serious traction, with XRP and BNB emerging as frontrunners in this week’s rally. 

According to a recent report by CryptoQuant, altcoins are beginning to see an influx of attention and funds, marking a possible turning point in the broader market.

Altcoin Momentum

Throughout the last week of July, the overall sentiment in the crypto space has leaned in favor of altcoins, suggesting a shift in investor behavior. 

XRP and BNB led the charge, outperforming even Bitcoin in certain metrics and tapping new all-time highs. This movement hints at a deeper trend where investors are starting to bet more confidently on altcoin potential.

While the total crypto market cap slightly declined by 1.6% over the last 24 hours to settle around $3.79 trillion, the spotlight remained on high-performing altcoins like BNB and XRP, which showed strength even amidst temporary volatility.

Read Also: TOP Altcoins to Buy for Gain 10X–100X on This Bull Run

Altcoin Momentum Drivers

So, what’s fueling the rally? Here’s the altcoin momentum drivers:

1. BNB Hits Historic Highs

BNB price smashed through the $860, surpassing its 2021 bull cycle high and reaching its strongest price point since 2017. Over the past month alone, BNB surged by 23%, supported by solid performance in earlier quarters.

One major reason for BNB’s consistent growth is its low drawdown rate; it hasn’t dropped more than 30% below its all-time high throughout the year. This resilience reflects strong investor confidence, largely thanks to ongoing activity within the BNB Chain and Binance ecosystem.

2. XRP Gains from Regulatory Clarity

XRP price rally is driven by a mix of institutional interest and recent regulatory shifts. After years of uncertainty due to legal battles with the U.S. SEC, the tide is turning. The SEC, now under Paul Atkin’s leadership, is showing more openness to crypto integration into mainstream finance.

The creation of a crypto task force and frameworks like the GENIUS Act for stablecoins have given investors a renewed sense of clarity and confidence, particularly when it comes to XRP’s legal status and long-term viability.

3. Rising Treasury Inflows and Fund Shifts

Another catalyst behind this altcoin momentum is the increase in treasury inflows toward altcoins rather than Bitcoin. 

According to the report, fund managers are starting to diversify into alternative assets, betting on altcoin ecosystems that are showing more utility and innovation than Bitcoin’s relatively stable narrative.

Read Also: How to Buy XRP (XRP)

Ethereum Struggles 

While XRP and BNB shine and lead the altcoin momentum, Ethereum (ETH) appears to be taking a backseat. Despite positive performance earlier in the year, ETH still hasn’t touched its 2021 highs. 

Analysts noted a recent spike in whale activity, with large sums of ETH being transferred to centralized exchanges, often a sign of incoming sell-offs.

This movement suggests that institutional accumulation of Ethereum may not be strong enough to withstand the ongoing selling pressure. As a result, ETH’s momentum has cooled, at least for the moment.

Read Also: How to Buy Binance Coin (BNB)

Conclusion

The rise in altcoin momentum led by XRP and BNB marks an exciting period in the crypto landscape. With both assets showing resilience and growth backed by strong fundamentals and institutional interest, they are becoming key players in the altcoin arena. 

As altcoins continue to attract capital and attention, we may be witnessing the start of a new phase in crypto investing, one that favors diversified ecosystems and practical utility over just brand name recognition.

Explore expert insights, in-depth articles, and the latest crypto market trends on Bitrue blog. Whether you're a beginner or a seasoned trader, there's something valuable for everyone. Stay informed and ahead in your crypto journey. Register now on Bitrue and take the next step!

FAQ

What does altcoin momentum mean?

Altcoin momentum refers to a period when alternative cryptocurrencies (non-Bitcoin tokens) experience increased price action, investor interest, and trading volume. It often signals a market shift from Bitcoin dominance to a broader altcoin rally.

Why are BNB and XRP leading the altcoin market?

BNB’s momentum is powered by strong ecosystem use and minimal drawdowns, while XRP is gaining from regulatory clarity and institutional inflows. Both have outpaced other assets, including Bitcoin and Ethereum, in recent weeks.

Is Ethereum losing its place in the market?

Ethereum remains a major player, but recent whale sell-offs and a failure to hit previous all-time highs suggest it may be facing short-term headwinds. However, its long-term outlook remains strong with continued network development.

Should I invest in altcoins now?

Altcoins like XRP and BNB show promising growth, especially during periods of strong momentum. However, all investments carry risk, always research thoroughly and consider your risk tolerance before making a move.