February Records Highs
Altcoins like Optimism (OP) and Kaspa (KAS) are experiencing a surge in prices as institutional interest in the cryptocurrency sector grows. This is largely due to the influx of billions of dollars into Bitcoin ETFs, which is prompting crypto native investors to reinvest their profits in altcoins. Between January 23 and February 16, the global altcoin sector saw a growth of $108 billion, with some mega-cap altcoins on the verge of reaching new all-time highs this month.
Kaspa (KAS) is currently ranked 31st on the global crypto charts with a market capitalization of $3.2 billion. It is a Layer-1 proof-of-work (PoW) cryptocurrency that combines the security and decentralization of a PoW architecture with high block rates and minimal confirmation times of a Proof of Stake (PoS) network through its GHOSTDAG protocol. KAS has outperformed prominent PoW coins like Bitcoin (BTC), Bitcoin Cash (BCH), and Litecoin (LTC), as well as the overall altcoin market, with a price increase of 56% between January 23 and February 16. If KAS gains another 7%, it will surpass its previous all-time high of $0.16 recorded on November 19. In the last three weeks, KAS has attracted about 1% of all capital inflows into the altcoin market, compared to the $108 billion growth in Total Market Cap.
The upcoming Bitcoin halving is one of the reasons behind Kaspa’s recent price surge. Experts predict that over 20% of Bitcoin miners will go offline when block rewards are reduced from 6.25 BTC to 3.13 BTC in April 2024. As a result, many miners may turn to alternative Proof of Work networks like Kaspa, which offer more attractive returns. Investors are therefore investing in KAS to potentially benefit from the fallout of the upcoming Bitcoin halving, which could drive the price to a new all-time high in the coming weeks.
Optimism (OP) is a layer-two blockchain built on Ethereum that offers enhanced scalability using optimistic rollups. It has gained attention from investors due to increased demand for defi transactions during the crypto market rally. Between January 23 and February 16, Optimism’s price outperformed the market average, with a 53% gain and an increase of about $1 billion in market capitalization. The OP price is currently just 10% away from its all-time high of $4.30 recorded on January 12. The ongoing rally in OP’s price is largely driven by the industry-wide demand for defi services.
Despite being relatively new compared to Polygon (MATIC), Optimism has quickly become one of Ethereum’s most sought-after scaling solutions. The correlation between OP price and TVL growth trends highlights the fundamental demand for defi solutions as the main catalyst behind the ongoing rally. With over 100 protocols hosted on Optimism, including Synthetix (SNX), Uniswap (UNI), and Velodrome (VELO), the demand for these critical defi services is still increasing. This suggests that OP is likely to reach a new all-time high in the coming weeks.
