Altcoins Surge as Investors Rotate Funds, Bitcoin Stable Above $100,000

Investors are actively rotating their funds into altcoins, leading to a surge in the valuations of tokens such as ETH, RAY, ENA, MKR, and others. Meanwhile, Bitcoin (BTC) remains relatively stable above $100,000, with its 30-day options-based implied volatility, as represented by Deribit's DVOL index, hovering near its lowest level since June 2024. This low volatility often precedes significant market movements, according to Georgii Verbitskii, a market analyst and founder of TYMIO, a crypto investor app. Verbitskii noted that the market's complacency could lead to a rapid breakout for BTC, potentially reaching $115,000 as early as May, if the liquidity thesis holds.

However, the market faces potential challenges. The U.S. Senate has a final opportunity to pass the bipartisan GENIUS Act, which aims to ensure digital currencies are backed by safe reserves and reported monthly. Failure to advance the bill in the recent vote means another failure will likely kill the bill unless all senators agree to reconsider. Additionally, the U.S. SEC delayed a decision on allowing in-kind redemptions for BlackRock's bitcoin exchange-traded fund while seeking public feedback.

In other developments, DeFi Development Corp. acquired 172,670 SOL worth approximately $23.6 million, increasing its total Solana Treasury holdings to over $100 million. This move is less common, as many companies are turning to Bitcoin to hedge against inflation and build their treasuries. River, a Bitcoin-focused company, highlighted that thousands of companies across various sectors are using Bitcoin for these purposes.

Uniswap DAO is currently voting on a proposal to fund the integration of Uniswap V4 on Ethereum in Oku and add Unichain on Oku. This initiative aims to enhance Uniswap’s reach and liquidity migration to V4. The voting ends on May 18. Additionally, Jupiter is set to hold a J.U.P Rally on May 14, and Yield Guild Games will host a Q1 2025 community update Ask Me Anything (AMA) session on May 15. Moca Network will also host a Discord townhall session discussing network updates on the same day. Theta Network is scheduled to host an Ask Me Anything session in a livestream on May 21.

Synthetix is considering acquiring Derive, an Ethereum-based options trading platform, in a $27 million token-swap deal. This acquisition would absorb Derive’s treasury, codebase, and operations. Derive holders would receive 27 SNX tokens for each DRV, with a three-month lockup and nine-month vesting period. Some members of the Derive community have expressed dissatisfaction with the proposed deal, citing unfavorable valuations and lack of benefits. Derive, originally known as Lyra, was spun out from Synthetix in 2021 but diverged by ending sUSD support and launching independent products, making this a rare DeFi reacquisition.

Elsewhere, "Launch Coin on Believe" (LAUNCHCOIN), formerly known as Pasternak, surged 130% in the past 24 hours. This surge aligns with the Clout platform’s transition into the token issuance platform Believe, which has boosted visibility and investor interest. The token had over $100 million in trading volume in the past 24 hours, up from a $5 million average over the past week. Believe’s platform has gained rapid traction since the weekend, attracting attention for its low-barrier model that allows Web2 and traditional companies to offer tokens for fundraising. However, these tokens are inherently valueless, representing no equity rights, and Believe has a strict policy that does not allow profit sharing with tokenholders.