Cryptocurrency analytics company Santiment has noted significant price movements in the altcoin market, particularly in privacy-focused cryptocurrencies and memecoins. However, the company cautioned that these increases do not yet indicate a market-wide recovery.
According to data shared by Santiment, privacy-focused cryptocurrencies Monero (XMR) gained 17% in value over the past seven days, while Zcash (ZEC) rose 5% in the last 24 hours. On the Memecoin front, Pepe (PEPE) increased by 9% and M (M) by 14%.
According to analysts, a strong market narrative is behind the rise in privacy-focused cryptocurrencies. Updates to Monero’s privacy features and planned improvements to the Zcash network have renewed investor interest in these projects.
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It is stated that the rises in meme coins are based on a different dynamic. Santiment noted that following recent selling pressure, speculative buying in this category has accelerated again, leading to sharp price recoveries.
However, the analysis firm noted that the gains were concentrated in certain altcoin groups. In the current environment, where many cryptocurrencies with large market capitalization are relatively calm, investors are believed to be turning to projects with strong storylines and assets offering high volatility.
According to Santiment, this activity shows that risk appetite hasn’t completely disappeared in the cryptocurrency market. However, the concentration of capital in specific sectors and a limited number of altcoins raises questions about the sustainability of the rallies.
*This is not investment advice.
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