Crypto assets have shown resilience following a prolonged downtrend, with its press time valuation going to $2.96 trillion.

Remarkably, it is now just $40 billion shy of its previous peak of $3 trillion, which it reached in January 2024.

At press time, Bitcoin [BTC] traded at $71,590, Ethereum [ETH] at $2,040, Ripple [XRP] at $0.81, and Dogecoin [DOGE] at $0.74.

Could this be the moment smart money rewrites its playbook? A recent Grayscale report comparing several of its crypto holdings shows that BTC and XRP have turned a profit, while ETH and DOGE have contributed to losses.

According to the report, Ethereum and Dogecoin slumped 47% and 42.2%, respectively, over the past year.

However, Bitcoin and XRP delivered gains of 0.4% and 6.1%, respectively, cementing their positions as top performers.

This type of market sentiment often dictates potential market movements, as retail and other institutional investors use it as a guide to decide where to channel their next investments.

This analysis from AMBCrypto explains why these individual assets rank as either top performers or underperformers within Grayscale’s portfolio.

Bitcoin attracts institutional interest

Bitcoin has remained a major point of attraction in the crypto market.

Over the past few months, it has drawn heightened institutional interest, particularly following the approval of Spot Bitcoin Exchange-Traded Funds (ETFs), which now boast a total asset under management (AUM) of $110.3 billion, according to CoinGlass.

Following Donald Trump’s inauguration, discussions around a federal Bitcoin strategic reserve resurfaced, further fueling institutional appetite.

For XRP, its growth has been influenced by the team’s approach to reaching a settlement with the U.S. Securities and Exchange Commission (S.E.C) over a years-long legal battle on whether XRP is a security.

In addition, Ripple’s focus on growth, including the launch of its own stablecoin, as well as several acquisitions and partnerships, has played a significant role in its market rally.

Liquidity outflow dampens ETH and memecoin’s trajectory

However, Ethereum failed to keep pace.

Ethereum, the second-most valuable crypto asset with a market capitalization of $217.4 billion, has underperformed. Although it showed positive growth in the past, it has recently lost appeal among investors.

The ETH/BTC chart, which tracks liquidity inflow and outflow between the two assets, shows that Ethereum has recorded significantly less liquidity compared to Bitcoin, with its dominance dropping 70% since January 2024.

On top of that, memecoins like Dogecoin struggled to attract new capital.

According to Artemis data, the memecoin sector shrank by 44.3% year-to-date as investors fled toward more stable assets.

The overall memecoin market has declined by 44.3% year-to-date, as investors have shifted to either stable assets or other cryptocurrencies.