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Crypto diversification surpasses Bitcoin, Ripple gains on legal win

EditorAmbhini Aishwarya
Published 07/11/2023, 06:48
© Reuters

The cryptocurrency market is witnessing a shift in demand as mid-tier and lower tokens in MarketVector's index saw significant increases of 16% and 14%, respectively, in November, overshadowing Bitcoin's modest 1% rise. This has led to a reduction in Bitcoin's dominance over the $1.38 trillion crypto market from 51.5% to approximately 49%. Digital Asset Capital Management described this rally as more sustained and broader than any since January.

The anticipated approval of US spot exchange-traded funds investing directly in Bitcoin fueled its surge last month. This rally is not confined to Bitcoin but is also evident in the DeFi sectors, where borrowing rates on Aave, a major DeFi lender, have exceeded 10%.

In related news, XRP, associated with Ripple Labs Inc., has seen a 14% gain, spurred by Ripple's partial legal victory over the SEC concerning its regulatory status. Analysts at ByteTree suggest that traders are reacting positively to these developments for Ripple.

Despite remaining below its 2021 record of $69,000, Bitcoin has experienced steady new buying, indicating a change in investor sentiment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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