Americas Crypto Daybook: PEPE Signals Altcoin Surge as Ether Outpaces Bitcoin

By Omkar Godbole (All times ET unless indicated otherwise) The crypto market rally is gaining momentum, with ether increasing its lead over bitcoin in terms of expected price fluctuations, indicating heightened activity not only in the second-largest cryptocurrency but also in the broader digital asset market. Deribit's ether implied volatility index (ETH DVOL), representing the anticipated 30-day price turbulence, has risen 11% to an annualized 7% this week, while the bitcoin equivalent, BTC DVOL, remains steady near multimonth lows around 45%, according to data from TradingView. This divergence has widened the spread between the two to 27%, the largest in at least two years, signaling that traders anticipate greater volatility in ETH and the broader altcoin market. Some observers note that ETH has become deflationary due to the Pectra upgrade, which has boosted on-chain activity and resulted in over 38,000 ETH being burned or destroyed in the past 24 hours. Market participants are buying higher strike ETH calls on Deribit in anticipation of continued price gains. We may be on the cusp of an altcoin season, as the BTC dominance rate appears to be ending its five-month uptrend. (Check out Technical Analysis). In key news, American fast-food chain Steak 'n Shake announced Thursday that it will start accepting BTC as a payment method at all U.S. locations starting May 16, allowing its 100 million customers to shop with the world's largest digital-asset token. T-Rex, a Web3 consumer entertainment platform backed by Portal Ventures, North Island Ventures, Framework Ventures, and Arbitrum Gaming Ventures, raised $17 million in pre-seed financing. Finally, in case you missed it, cryptocurrency exchange Coinbase agreed to acquire the world's largest crypto options exchange, Deribit, for $2.9 billion in cash and shares in the crypto industry's largest ever M&A deal. Deribit controls over 80% of the activity, meaning Coinbase will be able to offer a full suite of spot and derivative products, increasing liquidity on the platform. Stay alert! What to Watch Token Events Conferences CoinDesk's Consensus is taking place in Toronto on May 14-16. Use code DAYBOOK and save 15% on passes. Token Talk By Shaurya Malwa Derivatives Positioning Market Movements Bitcoin Stats Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs: Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether