Altcoins Gain Traction With Institutional Investors, But Challenges Remain

Key Points

1. Bitcoin's market dominance dropped from 63.76% to 60.78% over the past week, marking one of the largest weekly declines this year.

2. Institutional investors are diversifying into altcoins like Ethereum (ETH), Solana (SOL), and Ripple (XRP), driven by factors such as spot ETH ETF inflows and ecosystem growth.

3. Cardano's DeFi total value locked (TVL) surged from $1.2 billion to $2.5 billion this year, and ADA's price rose amid rising 2025 ETF approval odds.

4. Regulatory challenges persist, as seen with the SEC's abrupt reversal of approval for Bitwise Asset Management’s crypto ETF, citing the need for a full commission review.

5. Analysts note that while altcoin interest is growing, the market remains volatile, and institutional adoption may take longer than expected due to regulatory uncertainties.