The crypto market rally has resumed in the past few days, with altcoins like Solana (SOL), Cronos (CRO), Numeraire (NMR), and Livepeer (LPT) leading the way.
Solana price has risen in the last 7 days, while CRO soared by 140% in the same period. NMR and LPT jumped by 145% and LPT by 38%. Other top-performing tokens were Raydium, Bedrock, Catizen, and Hyperliquid.
Why the crypto market rally is happening
Bitcoin and the crypto market rally are happening as investors cheer the latest NVIDIA earnings, which demonstrated that the artificial intelligence industry is booming. Its revenue jumped by 56% to $46.7 billion, helped by the data center segment that made over $41.1 billion.
NVIDIA earnings always have an impact on the stock and crypto market because of its size and market share in the artificial intelligence industry, where its GPUs are used by the top hyperscalers like Microsoft and Google.
The crypto market rally is also happening as investors remain optimistic that the Federal Reserve will start cutting interest rates as soon as the September meeting. Jerome Powell and other Fed officials like John Williams, Christopher Waller, and Michele Bowman have all sounded supportive of cuts.
The stock and the crypto industry do well when the Federal Reserve is cutting interest rates or when it is leaning towards doing that.
Additionally, these tokens are rising because Bitcoin has found substantial support at the key point at $110,000. It has resisted moving below that level and was trading at $112,000 on Thursday. That sends hope that it may rebound, and possibly hit its all-time high, a move that would boost the altcoin market.
The cryptocurrency market rally was because of the activity in the derivatives market. Open interest rose to over $204 billion in the last 24 hours, while liquidations dropped to $256 million. A jump in open interest and fewer trades being liquidated are bullish factors for the industry.
However, there is a risk that the ongoing rebound is a dead-cat bounce, which is a temporary rebound whenever an asset is in a downtrend. Unfortunately, some of the recent surges in crypto have been these dead-cat bounces.
Crypto specific reasons for the rally
Meanwhile, there were crypto-specific reasons why they jumped. For example, the Numeraire price jumped sharply after JPMorgan allocated $500 million to its network, one of the biggest allocations in the crypto industry. NMR also jumped as the amount of staked assets jumped to over $14 million.
Today, Numerai reached a major milestone: one of the largest allocators to quant strategies has secured $500m capacity in Numerai’s hedge fund. Learn more: blog.numer.ai/jpmorgan-secur…
CRO price surged after Trump’s media company created a new firm whose only task will be to accumulate Cronos. The goal is to buy CRO tokens worth over $6 billion, a significant amount for a cryptocurrency worth over $9 billion.
The risk for the Cronos price is that it has become highly overbought and could be at risk of mean reversion.
Solana price roared as demand for the staked SSK ETF continued, and hopes that the SEC will approve spot Solana ETFs later this year. As with Ethereum, these funds will likely attract substantial inflows from American investors.
Livepeer price soared because of the rising participation rate in the network. It crossed the important resistance point at 50.4%, which is significant as that is where protocol inflation start to taper.
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