Grayscale Report: Bitcoin and XRP Lead Gains While Ethereum and Dogecoin Lag Amid Institutional Rotation
According to Grayscale’s latest investment report, Bitcoin (BTC) and XRP have outperformed other major cryptocurrencies in 2024, posting annual gains of 0.4% and 6.1%, respectively. This resilience is attributed to surging institutional interest, especially after the approval of spot Bitcoin ETFs, which now hold $110.3 billion in assets under management. Furthermore, speculation regarding a potential federal Bitcoin reserve under the new US administration has provided additional market support. XRP’s continued strength is linked to positive developments in its legal skirmish with the SEC and Ripple’s expansion into stablecoins and new partnerships. On the other hand, Ethereum (ETH) and Dogecoin (DOGE) underperformed, recording losses of 47% and 42.2%, reflecting a sharp decline in investor appeal and liquidity for these assets. The liquidity ratio of ETH/BTC has fallen by 70% since January 2024, while the memecoin sector, led by DOGE, has seen significant outflows as investors rotate toward assets with higher institutional backing and regulatory clarity. The overall crypto market is nearing a $3 trillion valuation, just $40 billion below its previous high, but the recovery remains selective. Traders are advised to focus on leading assets such as BTC and XRP while exercising caution toward lagging assets like ETH and DOGE.
Bullish
The report underscores a clear rotation by institutions toward Bitcoin and XRP, both of which have posted gains amid broader market volatility and a nearly $3 trillion market cap. The inflow of capital into spot Bitcoin ETFs and ongoing regulatory clarity for XRP signal robust demand and reduced risk for these assets. In contrast, Ethereum and Dogecoin have experienced sharp declines in both price and liquidity, with Ethereum’s dominance waning substantially. The net effect is a bullish outlook for BTC and XRP, as institutional participants and traders are likely to continue reallocating funds away from riskier or underperforming altcoins toward assets with better regulatory positioning and broader adoption. Historically, sustained institutional flows and regulatory progress have prompted upward price pressure and market outperformance for favored coins, supporting a bullish sentiment for BTC and XRP in the coming months.