Altcoin season continues its momentum, focusing on meme coins as BTC hits a new ATH: Bitfinex

The alternative cryptocurrencies (altcoins) sector is still enjoying its resurgence due to continued investor interest in such digital assets as Bitcoin (BTC) surges to a new all-time high of $72,000.

Analysts at crypto exchange Bitfinex revealed in the latest weekly report that investor interest in altcoins is shifting to meme coins and artificial intelligence (AI) projects.

Altcoins are experiencing significant growth

The increasing interest in altcoins is reflected in the market capitalization of the Total3 index, which tracks the price development of all cryptocurrencies except BTC and Ether (ETH). Last week, CryptoPotato reported that the index's market cap was around $640 billion; However, the figure has surpassed $700 billion and reached a new high of $720 billion for the first time this cycle.

Although the index's market cap is 33% below its all-time high of $960.78 billion in November 2021, it has come well beyond the $450 billion bear market, showing significant growth in altcoin interest and investments .

Zooming, AI-related projects, meme coins, dog-themed coins, and cat-themed tokens are some of the driving forces behind the resurgence of altcoins. According to Bitfinex, the meme coin and AI indices on Coingecko are up 32% and 38%, respectively, in the last seven days. Cat-themed coins, in particular, saw a 64% increase last week, recording a cumulative market cap of more than $750 million.

The increase in altcoin market cap correlates with an increase in market activity on Ethereum, resulting in higher transaction fees not seen in about two years. The network's annual fee revenue is over $10 billion, as it took in more than $190 million last week.

BTC rally triggers more liquidations

Meanwhile, Bitcoin's rise to $72,800 on March 11 could result in significant liquidations for traders with both long and short positions, as evidenced by the asset's previous attempts to overcome its last all-time high of $69,000.

Bitfinex warned that BTC traders will face increasing leverage and market volatility in the near term. The extent of the risk became clear on March 5, when BTC rose to $69,000 before falling to around $59,000 in four hours, resulting in $1.18 billion in long and short liquidations. dollars triggered.

“Even if one is correctly positioned in the markets, strong price movements such as those seen last week can lead to liquidations,” analysts explained.

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