This week, the cryptocurrency market has experienced a noticeable recovery, particularly for altcoins like XRP, DOGE, and XLM, signaling a positive shift in sentiment.
On platforms like Coinbase, which tracks U.S. investor behavior, and Binance, a global leader, these tokens are now trading at roughly similar prices, according to TradingView data. This recovery marks a reversal from the steep discounts observed on Coinbase in late December, suggesting that U.S. investors are once again participating in these markets.
The difference between Coinbase and Binance prices, known as the Coinbase premium, has become an important indicator for XRP, XLM, and DOGE. This premium compares the dollar-based prices on Coinbase with the Tether-based prices on Binance. Since Tether is a stablecoin pegged to the U.S. dollar, it provides an accurate measure of market activity.
The premium surged in early December as Bitcoin approached new all-time highs, sparking optimism across the altcoin sector. However, as Bitcoin’s momentum faltered and the market reacted to hawkish Federal Reserve expectations, the premium quickly turned into a discount, reflecting the cooling enthusiasm for altcoins.
