Bitcoin, Ethereum, Solana Rally Should Not Mislead Investors Into Believing All Cryptocurrencies Will Do Equally Well: 10x Research

"Any coin or token that failed to rally at least 10% over the last week should likely be avoided," the 10x Research analysts write in their latest report.

A recent report by 10x Research advises investors to be selective in their cryptocurrency choices during the current bull run, as not all digital assets will perform equally well.

According to the report, any cryptocurrency that failed to rally by at least 10% over the last week should likely be avoided by investors. The report instead urges investors to focus on specific assets that are demonstrating resilience and growth potential.

The report highlights the outperformance of Solana proxies Jito and Jupiter, which saw weekly gains of 24% and 16%, respectively, tracking SOL-USDT's strong performance.

Ethereum proxies also saw significant gains, with Ethena achieving a 37% increase.

Despite Ethereum not being the central focus in this rally, 10x Research points to signs of a possible bottom, supported by weekly stochastics indicators.

“The day when BlackRock's marketing team launches an Ethereum ETF push is drawing closer,” the report adds, suggesting a potential boost to Ethereum's standing as interest in ETFs grows.

The report also notes the convergence of crypto with traditional finance and predicts that regulatory developments in the U.S. could further stimulate institutional interest in cryptocurrencies.

Being the largest decentralized smart contract platform, Ethereum is well-positioned to continue driving use cases with greater regulatory clarity.

The report adds that Ethereum's appeal will be bolstered by lower gas fees following the anticipated Dencun upgrade in March 2024, which could attract more network validators and staking participants.

Bitcoin also saw strong demand for calls over puts, reflecting bullish sentiment.

“Bitcoin Skew, the spread between implied volatility for puts versus calls, continues to fall, reflecting stronger demand for upside exposure over concerns about downside risk,” the report states.

With spot ETFs gaining prominence, Bitcoin's volatility dynamics could shift, potentially leading investors toward higher-beta cryptocurrencies like Ethereum.

The report also identifies an uptick in retail trading activity in South Korea, with tokens like UXLINK seeing substantial trading volume.

As the token outpaced popular cryptocurrencies like Dogecoin and Bitcoin on Korean exchanges, it reflects a renewed interest among retail traders and adds a layer of volatility to the market landscape.

This rally comes amid institutional inflows and increased interest in core cryptocurrencies.

According to 10x Research, as institutional mandates expand, attention will likely consolidate around major cryptocurrencies, notably Bitcoin, Ethereum, and Solana.

Not only are these assets leading the market, but they are also positioned to drive the crypto market cap to new highs.