Altcoins May Be Ready to Catch Up With Stablecoin Market Cap
Crypto markets could be setting up for a sharp altcoin rally, according to prominent analyst Crypto Rover.
In a post shared on May 8, Rover highlighted a growing divergence between the stablecoin market cap and the altcoin market cap (excluding Bitcoin and Ethereum)—a gap he believes is poised to close soon.
“Altcoins are lagging behind the Stablecoin Marketcap. This gap is about to get filled. Don’t get fooled here,” Rover warned.
Chart Signals a Potential Reversal
The attached chart compares the market cap of altcoins (orange line) to that of major stablecoins such as USDT, USDC, and DAI (blue line). Historically, the two metrics tend to move in tandem, as stablecoin inflows often precede or coincide with fresh capital deployment into riskier crypto assets like altcoins.
Currently, however, there’s a notable gap between the two—a pattern that in past cycles has preceded aggressive catch-up rallies in the altcoin sector.
Implications for Traders
If Rover’s thesis plays out, altcoins could be on the verge of a significant upside move as capital parked in stablecoins rotates back into the market. This could align with broader bullish sentiment following Bitcoin’s surge above $100,000 and Ethereum reclaiming the $2,000 level.
While caution remains warranted, particularly amid macroeconomic uncertainty, the data suggests traders may want to start watching for signs of altcoin momentum shifts.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
