
The crypto market is showing signs of a classic rotation as Bitcoin struggles to hold momentum around $114,000 while altcoins continue to rally. In an exclusive interview with Coinpedia, Mohit Kumar, Head of Markets Research at Delta Exchange, explained that shifting liquidity and regulatory clarity are fueling the move into Ethereum and Solana.
Capital Rotates Into Altcoins
“Bitcoin’s recent softening around the $120,000 level appears to be driven by a greater interest in the Ethereum ecosystem,” Kumar told Coinpedia. He noted that the Digital Assets Clarity Act has provided a boost to altcoins, particularly Ethereum and Solana, which are benefitting from increased investor confidence.
This has created what Kumar described as a “risk-on” rotation within the crypto market, where capital flows from Bitcoin, often seen as the safe core asset, into higher-beta altcoins. Liquidity conditions remain relatively healthy, supporting this trend.
At Delta Exchange, Kumar observed a telling shift in activity. “Ethereum perpetual volumes have surpassed Bitcoin volumes for the last one month. Altcoins volumes have also significantly increased, further confirming the rotation into altcoins from Bitcoin,” he said.
Ethereum, Solana, and XRP Lead the Rally
Ethereum remains at the center of this rotation, boosted by strong ETF inflows, renewed treasury activity, and supportive policy sentiment in the U.S. Solana is also emerging as a major beneficiary. According to Kumar, “smart money” is moving into high-throughput layer-1 blockchains like Solana, with interest further supported by the recovery of its DeFi and NFT ecosystems, as well as attractive staking yields.
XRP has joined the rally as well, fueled by retail enthusiasm and its narrative as a cross-border payments solution. Kumar highlighted that its momentum is aided by legal clarity from past regulatory battles, which has kept sentiment strong.
Altcoins’ outperformance, Kumar stressed, is less about Bitcoin weakness and more about diversification across the digital asset market. “This altcoin rally is fueled by relatively healthy liquidity conditions and positive regulatory developments,” he explained, pointing to a structural shift in how capital rotates across the sector.
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