Announcement of a strategic crypto reserve of Trump, as well as a decrease in leverage from liquidity on February, can lead to a more sustainable rally in the top altcoins, with ADA’s probability the largest pump.
President Trump on Sunday announced the formation of the reserve, named Ripple (XRP), Solna (SOL), and Cardano (ADA) as part of the initial selection before connecting bitcoin (BTC) and atherium (Ath). As Kaiko’s researchThe inclusion of select Altcoins in the US strategic reserve will accelerate capital rotation in the Altcoin market. Top 10 AltCoins now have 77% of the AltCoin trading volume on US platforms, which is above 58% a year ago.
Increased concentration of capital in Alt coins can significantly increase their prices. The reason for this is partially because altcoins are less liquid than bitcoin, which means small changes in supply and demand can have a major impact. The ADA can see, especially, even large prices because it currently lags behind other assets in the strategic reserve.
Its signs are already clear. After reserved declaration, market instability increased, especially between altcoins. Within the first 24 hours of the news, intraday volatility spikes for Large-Cap Altcoin, which is 600% shocking for ADA. The tokens have seen the strongest capital flow since the announcement, with its open interest from 10% year-over to $ 554 million.
Additionally, Kaiko mentioned that the recession on February caused several waves, reducing the leverage in the top ten ultcoin. When combined, these two factors suggest that, while the top altcoins (possibly increase in their prices) have a concentrated flow of capital, the decrease in the leverage means that the upcoming Alt pumps will be less unstable and more durable.
