This week, the cryptocurrency market saw a notable positive shift, particularly in the prices of major altcoins like XRP, DOGE, and XLM.
According to TradingView data, these tokens are now priced similarly on both Coinbase, which serves as a proxy for U.S. demand, and Binance, the leading global exchange. The recovery in prices follows the steep discounts observed on Coinbase in the second half of last month, suggesting that U.S. investors are returning to the market.
Charts tracking the Coinbase premium for XRP, XLM, and DOGE reveal this trend. The Coinbase premium indicator measures the price difference between dollar-denominated prices on Coinbase and Tether-denominated prices on Binance. Tether, the largest stablecoin, is pegged to the U.S. dollar at a 1:1 ratio.
In early December, the premium surged as Bitcoin (BTC) rallied to new all-time highs above $108,000, sparking renewed risk appetite. However, this bullish momentum waned in the latter half of the month due to hawkish expectations from the Federal Reserve, which tempered market sentiment in the altcoin space. Consequently, the premium turned into a discount.
