The two largest cryptocurrencies are currently the only CoinDesk 20 assets trading higher, as investors appear to be rotating toward established tokens while smaller altcoins lose momentum.
Bitcoin gained around 0.9% over the past 24 hours, trading near $64,700, while the broader CoinDesk 20 (CD20) index advanced only 0.16%. Even as global equities continue pushing toward record highs, the strength in traditional markets has done little to lift the wider crypto sector.
Market participants appear to be favoring the relative stability of bitcoin and ether, with the two largest cryptocurrencies standing alone as the only CD20 members in positive territory. Zaheer Ebtikar, chief strategy officer at crypto neobank Plasma, said altcoins are struggling because they lack strong support from bitcoin’s current momentum.
Ebtikar noted that open interest across altcoins has declined by roughly 15% over the past month, while bitcoin has gained about 8%. CoinMarketCap’s Altcoin Season Index also slipped to 42 out of 100, down from the previous reading.
He explained that bitcoin has developed deeper connections with traditional finance through spot ETFs, basis trading, institutional hedging strategies and collateral use. Because of this, bitcoin demand can continue without requiring a major price rally. Most altcoins, however, have not yet achieved the same level of adoption or financial integration.
According to Ebtikar, the weakness across altcoins also reflects concerns over unclear value creation. Many projects have struggled to demonstrate how token holders benefit economically, making investors less willing to hold them during market downturns.
AI stocks weaken as market focus shifts
Technology stocks also faced pressure, with the Nasdaq 100 declining while the S&P 500 and Dow Jones Industrial Average moved higher. The move followed SpaceX’s first financial results since becoming publicly traded in June.
Investors reacted negatively to the company’s sharp increase in AI-related spending, pushing shares down 13% before the closing bell. The AI investment theme has been viewed as one factor pulling capital away from crypto markets, and a slowdown in that trend could potentially help revive digital asset demand.
Crypto derivatives show mixed signals
Bitcoin leverage improves, but traders remain cautious:
Crypto futures sentiment turned more optimistic, with the long-short taker volume ratio moving into positive territory for the first time in at least a week. Long positions represented nearly 52% of trading activity, indicating stronger buyer participation.
Bitcoin futures open interest climbed to around 770,000 BTC. However, similar increases since early June have not lasted, with previous spikes quickly reversing as open interest fell back toward 740,000 BTC or lower. A sustained rise would indicate stronger confidence and renewed willingness among traders to use leverage.
Other indicators, including perpetual funding rates and open interest-adjusted cumulative volume delta (CVD), remain supportive of a constructive bitcoin outlook.
XRP sees bearish setup as open interest rises:
XRP futures open interest increased about 5% over the past day to 2.23 billion tokens, even as the token price dropped to $1.04, its lowest level since early July.
The combination of falling prices and rising open interest is often viewed as a sign of continued weakness. Negative perpetual funding rates and one of the weakest open interest-adjusted CVD readings among major tokens suggest traders may be preparing for further downside.
Ethereum remains stagnant while Solana positions decline:
Ether futures activity has remained muted, with open interest holding below 14 million ETH and showing little movement. Solana, meanwhile, continues to see leverage unwind, with futures open interest falling to 60.81 million tokens after reaching above 76.5 million on June 24.
Stock-based perpetual futures gain traction:
Equity-linked perpetual contracts ranked among the most actively traded instruments over the past 24 hours. Contracts tied to assets such as SNK, SPCX and SKYHYNIX traded alongside major crypto assets like bitcoin and ether, showing continued demand for traditional market exposure through crypto platforms.
Major tokens show divided market sentiment:
CVD data shows mixed conditions across leading cryptocurrencies. Bitcoin and ether recorded positive 24-hour CVD readings, suggesting aggressive buying pressure, while SUI, XLM, DOGE, AVAX and XRP showed negative readings, reflecting weaker demand.
BTC and ETH volatility remain steady:
Bitcoin implied volatility has remained stable, with the BVIV index holding near 36%, a level that has historically moved back toward its average. Ether volatility has followed a similar pattern, showing limited changes.
Options traders position for higher prices:
Bitcoin options markets show increased demand for bullish call contracts at strikes well above current prices, including $80,000 and $96,000 calls. For ether, the $2,000 call option was the most actively traded contract over the past 24 hours.
NEAR’s AI-compute model faces adoption challenge
NEAR traded at $1.68 on Thursday, down 1.8% over the previous 24 hours after reaching a daily high of $1.73. The token’s market capitalization stands near $2.19 billion, but its price has not reflected growing interest in its AI-computing strategy.
The network recently introduced an AI-compute staking product that allows users to lock NEAR tokens to help provide computing resources for AI applications. The goal is to connect token demand with real-world usage rather than relying only on governance or speculation.
However, Leo Fan, CEO of Cysic, said the model’s long-term success depends on whether genuine demand develops.
Fan explained that stake-to-compute systems can provide tokens with stronger economic utility, but early participation may be driven largely by incentives rather than actual demand from developers.
He said investors should watch three key indicators: how much staked computing capacity is actively used, the amount of workloads processed, and whether developers continue paying for computing services after incentives decline.
If AI developers maintain demand after subsidies fade, the model could prove sustainable. A sharp decline in activity would suggest adoption was mainly driven by rewards.
The outcome will be closely watched across the AI-focused crypto sector, as connecting tokens to real computing demand represents one of the industry’s clearest attempts to move beyond speculative utility.
