ETH and SOL have once again seized the spotlight, with smart money favoring these top altcoins alongside rising interest in RWA narratives. A sharp drop in stablecoin balances on centralized exchanges is signaling renewed risk-on sentiment, and institutions are deploying capital fast.
Ether and Solana Gain Momentum
Ether has accelerated this week following news that Ether Machine SPAC will soon list on Nasdaq. With $1.6 billion in ETH on its balance sheet, the SPAC has positioned Ether as a formidable treasury asset. This approach has helped ETH outspace BTC, with support from ETH derivatives like Liquid Collective’s staked ETH (LsETH).
The Bybit Smart Money Report says that SOL-related contracts are now some of the most traded assets by major investors. Possible approval of the Solana Spot ETF is getting support in Washington, which is changing people’s minds in favor of SOL, causing SOL to be on the rise again.
RWA Altcoins in the Spotlight
Real-world asset (RWA) tokenization is also no longer just a narrative. Ondo Finance (ONDO) has been getting a lot more inflows because of its unique situation to connect TradFi and DeFi.
Now that real, yield-bearing assets are joining the blockchain economy, buyers are moving their funds around to take advantage of this growing area.
Key Holdings of Smart Money
Smart money is still flowing into ETH derivatives, especially LsETH. At the same time, BTC derivatives are still a core holding, even though it is trading sideways around the $120K mark.
In addition to ETH and BTC, institutional portfolios are also showing more interest in Uniswap (UNI), which has quietly gone up more than 50% in the previous month. Worldcoin (WLD) is gaining more attention as regulators are more open to DIDs nowadays. Sky (SKY), when listed on CEXs, gained more momentum. In the world of trading, meme tokens like BONK and PENGU are taking funds away from established names like DOGE and SHIB. Avalanche (AVAX), on the other hand, has seen a lot of outflows due to people taking profits away in the short term.
Decline in Stablecoin Reserves Suggests Risk-On Mode
Data suggest that the reserves of stablecoins on CEXs are at their lowest level in three months. People usually see this drop as a sign that investors are putting their funds into riskier cryptocurrencies. More trading in cryptocurrencies and meme tokens is making some think that a bigger market rally might be on the way. In the past, big drops in stablecoin holdings have come before big bull runs in crypto.
It’s apparent that smart money is going into altcoins. As traders go into new areas, a new leg of the bull cycle may already be on the way.
Also Read: Ethereum Price to Hold Key Support as SharpLink Adds 77,210 ETH Last Week
