Bitcoin, XRP soar, Ethereum, Dogecoin struggle: What’s behind the latest crypto moves?

The cryptocurrency market has regained momentum after a long downtrend, with a valuation of $2.96 trillion at press time. Notably, the market cap is only $40 billion below its previous peak of $3 trillion.

Crypto assets such as Bitcoin [BTC], Ethereum [ETH], Ripple [XRP], Dogecoin [DOGE], etc. have maintained their dominance in the market and contributed to the market growth.

However, Grayscale, an institutional investment platform for traditional financial investors, revealed that only a few of these top assets are profitable.

Is this the moment when smart money rewrites the script?

A recent report released by Grayscale compared its several cryptocurrency holdings and showed that BTC and XRP have achieved profits, while ETH and DOGE have suffered losses.

Ethereum and Dogecoin have reportedly fallen 47% and 42.2% respectively over the past year.

Meanwhile, Bitcoin and XRP rose 0.4% and 6.1% respectively, consolidating their positions as leaders.

This market sentiment often determines potential market moves, as retail and other institutional investors use it as a guide to decide where to invest next.

Meanwhile, AMBCrypto analyzes why these individual assets rank highest or lowest in Grayscale's portfolio.

Bitcoin has been a major focus in the cryptocurrency market.

It has attracted a lot of institutional attention in the past few months, especially after the approval of a spot Bitcoin exchange-traded fund (ETF), which now has total assets under management (AUM) of $110.3 billion, according to CoinGlass.

After Donald Trump's inauguration, discussions about a federal strategic reserve of Bitcoin resurfaced, further spurring institutional interest.

For XRP, its growth was influenced by the way the team settled a years-long legal battle with the U.S. Securities and Exchange Commission (SEC) over whether XRP is a security.

In addition, Ripple's focus on growth, including the launch of its own stablecoin, as well as multiple acquisitions and partnerships, played a major role in its market rebound.

Liquidity outflows dampen ETH and memecoins

However, Ethereum has failed to keep pace.

Ethereum, the second-largest crypto asset by market cap at $217.4 billion, has underperformed. Despite showing positive growth in the past, it has recently lost traction among investors.

The ETH/BTC chart, which tracks liquidity inflows and outflows between the two assets, shows that Ethereum has significantly lower liquidity compared to Bitcoin, with its dominance falling 70% since January 2024.

In addition to this, memecoins such as Dogecoin have struggled to attract new capital.

According to Artemis data, the memecoin sector has shrunk 44.3% year to date as investors have turned to more stable assets.

According to Artemis data, the entire memecoin market has fallen 44.3% year to date as investors have turned to stable assets or other cryptocurrencies.