Bitcoin Dethroned as OTC Investors Turn to Altcoins

The past six months in the crypto sphere have been simultaneously uneventful and full of surprises. While the price of most coins has remained more or less stagnant, this has done little to stop traders…well…trading.

Over-the-counter (OTC) crypto trades have surged in popularity over the past six months, with some surprising trends emerging in the types of coins being traded.

According to data from Swyftx OTC, Bitcoin (BTC) is no longer the undisputed king of OTC trades, with Solana (SOL) taking the lead by a narrow margin. This marks a shift in priorities among large investors, who are showing a growing appetite for altcoins.

Despite the recent hype surrounding Bitcoin and the introduction of spot ETFs, these factors seem to be having a limited impact on institutional investors, who are instead showing a preference for alternative digital assets.

Rounding out the top three is Ethereum (ETH), although its OTC trading volume has slowed significantly compared to Bitcoin and Solana. This performance could be attributed to the lack of a strong narrative driving investment and positive sentiment toward the coin throughout the year.

Interestingly, Swyftx's OTC data reveals a strong presence of meme coins among the top-traded assets. Frog-themed meme coin PEPE ranks fourth, outperforming major projects like USDC and XRP.

Moreover, three meme coins - Pepe, Dogwifhat, and Dogecoin - feature in the top ten OTC assets, indicating that high-volume investors are actively engaging with this sub-sector of the crypto market.

This aligns with the typical profile of OTC traders, who are likely to be deeply involved in the crypto scene and have a higher tolerance for risk, leading them to allocate a portion of their portfolio to these volatile assets.

OTC crypto trades are typically executed outside of exchanges, catering to high-net-worth investors or institutions looking to make large transactions (usually exceeding $50,000).

This method provides access to deep liquidity pools, ensuring efficient and confident execution of orders, making it particularly suitable for large-volume traders.

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