Altcoin Market Capitalization Surges to $1.12 Trillion, XRP and AVAX Rally Amid Institutional Interest

Altcoin market capitalization surges to $1.12 trillion, with top altcoins such as XRP, Solana, and Avalanche posting significant gains. XRP gains 4.5% as VivoPower International raises $19 million through an equity offering to expand its XRP holdings, while Avalanche Treasury Co. announces a $675 million business combination with Nasdaq-listed Mountain Lake Acquisition Corp., boosting AVAX by 3.5%. The market rally has revived hopes for an altcoin season, but analysts warn against declaring it prematurely.

The altcoin market capitalization has surged to $1.12 trillion, marking a strong start to October with notable gains across top altcoins such as XRP, Solana, and Avalanche. XRP, in particular, saw a 4.5% increase, driven by VivoPower International's $19 million equity raise to expand its XRP holdings. Meanwhile, Avalanche Treasury Co. announced a $675 million business combination with Nasdaq-listed Mountain Lake Acquisition Corp., boosting AVAX by 3.5%.

VivoPower International, a sustainable energy solutions company, raised $19 million through an equity offering priced at $6.05 per share. The proceeds will be used to scale up its XRP treasury strategy and pay off debt. This move follows VivoPower's August acquisition of $100 million of privately held shares of Ripple Labs, the company behind XRP and XRPL. The company aims to support the growth of XRP Ledger and provide indirect exposure to XRP through Ripple.

Avalanche Treasury Co. (Avat) declared a $675 million business combination with Mountain Lake Corp., listed on the Nasdaq Stock Exchange (MLAC). The deal includes $460 million of cabinet assets, part of which has already been allocated to buy AVAX. Avat received $200 million from AVAX with a discount, with rights of the first month for 18 months. The market reaction was positive, with AVAX climbing 3.5% and adding $350 million to its maximum market.

The altcoin market's rally has revived hopes for an altcoin season, but analysts warn against declaring it prematurely. The Daan Crypto Merchant indicated that the total maximum Altcoin market is to re-test the last levels in 2021 and suggested that although some distinctive symbols are likely to outperform, the sector still needs a decisive outbreak.