Altcoins May Be Ready to Catch Up With Stablecoin Market Cap

Crypto markets could be setting up for a sharp altcoin rally, according to prominent analyst Crypto Rover.

Crypto markets could be setting up for a sharp altcoin rally, according to prominent analyst Crypto Rover.

In a post shared on May 8, Rover highlighted a growing divergence between the stablecoin market cap and the altcoin market cap (excluding Bitcoin and Ethereum)—a gap he believes is poised to get filled soon.

“Altcoins are lagging behind the Stablecoin Marketcap. This gap is about to get filled. Don’t get fooled here,” Rover stated.

Source: Crypto Rover on X

The attached chart compares the market cap of altcoins (orange line) to that of major stablecoins such as USDT, USDC, and DAI (blue line). As the visualization shows, the two metrics typically move in tandem, with stablecoin inflows usually preceding or coinciding with fresh capital deployment into riskier crypto assets.

However, as highlighted by Rover, there’s currently a large gap between the altcoin market cap and the stablecoin market cap—a pattern that in past cycles has preceded aggressive catch-up rallies in the altcoin sector.

If this scenario plays out, altcoins could be setting up for a substantial upside move. This observation aligns with the broader bullish sentiment following Bitcoin’s (BTC) recent surge above the $100,000 mark and Ethereum’s (ETH) return above the $2,000 level.

While it’s crucial to remain vigilant, especially considering macroeconomic uncertainty, the data suggests traders may want to keep an eye out for any signs of momentum shifting in the altcoin market.