Stay updated on Ethereum's Dencun upgrade, Solana's uptrend, and Ripple's legal battle with the SEC. Explore potential catalysts for these altcoins in March.

February has been a notably bullish month for the cryptocurrency market. The overall market capitalization has surged from approximately $1.7 trillion at the start of the month to over $2.07 trillion presently, marking a significant gain of over 21%.

As we embark on the new year, it's essential to recognize that there are numerous factors on the horizon that could further bolster the market's trajectory.

In the forthcoming discussion, we'll examine three alternative cryptocurrencies poised for attention in March. Let's delve in.

Ethereum (ETH)

Ethereum has demonstrated strong momentum throughout February, surpassing the $3,000 mark for the first time since 2022. It's evident that bullish sentiment surrounds ETH, which has surged by an impressive 35% in the last 30 days.

Looking ahead to March, a significant update is on the horizon known as Dencun. Named by amalgamating the cities Cancun and Deneb, this Ethereum hard fork aims to enhance scalability through the introduction of "data blobs."

These data blobs represent a novel transaction type intended to bolster information availability for layer-two rollups, addressing scalability concerns. While this summary oversimplifies the concept, a comprehensive understanding of Dencun is advisable. For more details, refer to this post.

We've also sought insights from Tristan Dickinson, Head of Marketing & Communications at the dYdX Foundation, who emphasized:

"It's crucial to closely monitor Ethereum in the coming months and years. The transition to a Proof of Stake (PoS) consensus mechanism has garnered significant attention, yet the focus has predominantly been on price dynamics rather than the fundamental benefits for users. The move to PoS acted as the initial catalyst, and the impending Dencun upgrade represents another significant catalyst, addressing vital concerns related to scalability and high transaction fees. The introduction of Proto-danksharding is poised to effectively tackle these challenges, likely driving rapid adoption and scalability."

Additionally, Andrey Stoychev, Prime Brokerage at Nexo, remarked:

Looking ahead to March, there are compelling reasons to maintain a bullish outlook on ETH. Total Ethereum futures contracts have exceeded $10 billion – marking a 50% surge since the beginning of 2024, indicative of robust market interest. Furthermore, the debut of the first Ethereum ETF is drawing closer, alongside the expanding trend of restaking, which is locking up more ETH, reducing circulating supply and mitigating sell pressure. Moreover, Ethereum's forthcoming major upgrade, Dencun, is progressing smoothly on the Holešky testnet, suggesting that scaling features such as proto-danksharding could soon make their mainnet debut. Given these factors, fading ETH at this juncture would be ill-advised."

In summary, several compelling factors make Ethereum worth monitoring in March:

  • The impending Dencun upgrade.
  • Promising on-chain metrics indicating a shift towards self-custody.
  • The anticipation surrounding Bitcoin's halving in April.
  • The excitement surrounding the potential approval of a spot ETH ETF in the United States.

Solana (SOL)

Solana has exhibited remarkable performance in recent months, ascending to become one of the top 5 largest cryptocurrencies by market capitalization. At one point, SOL even surpassed BNB to claim the 4th position.

For perspective, SOL was trading at $58 towards the end of November. At present, it's trading above $100, reflecting a staggering surge of 77%.

While February brought positive developments for SOL, the cryptocurrency has somewhat lagged behind other top performers like Ethereum and Bitcoin.

Data from TheBlock indicates that several key on-chain metrics for Solana continue to exhibit a clear uptrend despite the February dip. For instance, the 7-day moving average chart depicting the number of active addresses on the network over the past year demonstrates this trend.

As we approach the Bitcoin halving, dynamic altcoins like Solana may sustain their upward trajectory, warranting close observation.

Ripple (XRP)

Surprisingly, XRP has shown a notable uptick in performance in February, with a nearly 10% spike. While its performance has been relatively stagnant in recent months, Ripple's native cryptocurrency has emerged as one of the better performers.

Heading into March, the looming trial with the United States Securities and Exchange Commission draws nearer. Ripple is embroiled in a significant legal battle with the Commission, with the highly anticipated trial scheduled to commence on April 23rd. Should the trial proceedings favor Ripple, it's likely to impact XRP's price trajectory.

Furthermore, Ripple recently acquired Standard Custody & Trusted Company, an entity holding several money transmitter licenses in the United States, a Major Payment Institution License from the Monetary Authority of Singapore, and a Virtual Asset Service Provider registration with the Central Bank of Ireland.

Ripple has announced intentions to roll out payment products in the US, potentially serving as a positive catalyst.