Why did the coin market rise today... What's the reason for QNT and ONDO's 25% surge?

▲ ONDO / Source: X ©

While the virtual asset market saw a slight rebound, funds flowed into altcoins that secured clear institutional adoption, leading to some assets surging by over 25%. The rise was driven by a rotation of altcoins, particularly those focused on Real-World Assets (RWA) and institutional partnerships, rather than a broad market increase centered on Bitcoin.

According to cryptocurrency market data aggregator CoinMarketCap, on September 25 (local time), the total virtual asset market capitalization increased by 0.54% over 24 hours to reach $2.88 trillion. While correlation with traditional financial markets remained low, Quant (QNT) surged by 26.66% after announcing a partnership with The Clearing House for US bank settlements. ONDO also jumped by 25.09% following the launch of a tokenized investment portfolio developed with BlackRock.

In the market, there was a selective movement of funds towards high-beta altcoins with institutional adoption and real-world utility. Specifically, assets related to Real-World Assets (RWA) showed strong performance, with buying interest concentrating on assets that secured individual positive news rather than a uniform market-wide increase.

Investor sentiment also supported the upward trend. The Fear & Greed Index remained at 73, indicating 'Greed.' Conversely, total derivatives Open Interest decreased by 11.7% over 24 hours, and Bitcoin (BTC) liquidations fell by 32%. This reduction in speculative leverage alongside the rise indicates a lowered risk from excessive leveraged positions. However, if the average Funding Rate rises again, it will be necessary to monitor for overheating in long positions.

In the short term, the spread of altcoin rotation is expected to dictate market direction. The total market capitalization is facing short-term resistance at its recent high of $2.94 trillion, with the 23.6% Fibonacci Retracement level of $2.85 trillion identified as support. A break above $2.94 trillion could open the door for a further rise to $3.03 trillion, but failure to hold $2.85 trillion could see profit-taking overshadow the rotation trend. The progress of tokenized stock trading plans by the New York Stock Exchange (NYSE) and Blockchain.com is also considered a key variable.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*