Grayscale Investments saw an astonishing 85% increase in its crypto holdings during the month of November, driven chiefly by altcoins Stellar (XLM) and XRP. This comes amid broader market conditions suggesting that the season of altcoins is already underway.
The increase came with rising investor sentiment, with several altcoins outperforming to add even more to Grayscale’s portfolio.
Stellar’s XLM Leads with 500% Gains
Stellar was the clear winner with its 469% increase. Market optimism and high adoption of Stellar’s blockchain for cross-border payments contributed to this gain.
XRP added 262% on speculations of ETF approvals, among others, and expanded use in DeFi implementations. Others like Decentraland’s MANA token were up by 105% to push the altcoin rally forward.
Altcoin Season Around the Corner
The market is strongly indicating the possibility of an extended altcoin season. Bitcoin dominance slipped below its two-year support line on November 30, signaling a shift in investor focus toward altcoins.
Ryan Lee, chief analyst at Bitget Research, thinks XRP will reach $2.57 by the end of December. “Historical trends tied to Bitcoin halving events support this projection,” he said. Analysts predict these historical trends will continue propelling altcoin performance well into 2025.
Regulatory Shifts Could Accelerate XRP’s Growth
Ripple’s XRP is set to gain further momentum with changes in regulation. Asset manager 21Shares has filed for an XRP ETF, which could catalyze further adoption if approved by the U.S. Securities and Exchange Commission (SEC).
Also, with the expected retirement of SEC Chair Gary Gensler this coming January, more crypto-friendly regulations may set in. Among the leading candidates to replace him is the very pro-crypto Paul Atkins, which hopes for quick ETF approvals and market expansion.
Grayscale Dips into Bitcoin ETF Options
At the same time, Grayscale is expanding its offerings to include options trading on its spot Bitcoin ETFs, starting this week. It’s a move that’s in line with growing institutional interest – BlackRock’s iShares Bitcoin Trust notched $1.9 billion in notional exposure on its first day of trading.
Ripple’s RLUSD Stablecoin Ready for Launch
Ripple is scheduled to launch RLUSD, a stablecoin pegged to the U.S. dollar, on December 4. This move further cements Ripple’s place within the stablecoin ecosystem and extends its RippleNet network to further position it as a leader in blockchain-based payments.
