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Home Bitcoin

Altcoin Season Index at 35: What does it take to trigger a boom?

May 29, 2024
in Bitcoin
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Altcoin Season Index at 35: What does it take to trigger a boom?
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  • Bitcoin dominance has remained above 50%.
  • The altcoin season has yet to kickstart despite recent moves in the market.

Bitcoin [BTC] has experienced impressive price trends since the beginning of the year, and recently, Ethereum [ETH] has also shown significant upward movements.

With ETH’s current trajectory and the spikes in value of various other assets, the question of whether an altcoin season might be underway is raised.

Altcoin season not underway

Usually, when Ethereum starts to rally, it can signal the beginning of altcoin season. However, for the season to fully commence, other metrics also need to show significant movement.

As of now, the Altcoin Season Index on blockchaincenter.net stands at 35. For the index to indicate an ‘altcoin season,’ 75% of the top 50 coins must outperform Bitcoin.

Altcoin season index

Source: blockchaincenter

Bitcoin dominance holding back the altcoin season

A decrease in Bitcoin’s dominance can contribute to the onset of the altcoin season as traders diversify their holdings. They invest in other cryptocurrencies, shifting the market cap away from BTC.

Currently, the cryptocurrency market capitalization is around $2.55 trillion, according to CoinMarketCap. BTC dominance is over 52%, leaving altcoins with less than 50% of the market share. Within this, Ethereum holds 18.2%.

Furthermore, the BTC price tends to stabilize and remain stable after a significant price trend. This stability can prompt market participants seeking short-term gains to sell their Bitcoin and move into altcoins. 

Additionally, BTC’s high price can be a barrier for new traders, who may opt for altcoins instead. This shift in investment can contribute to a broader redistribution of market cap towards altcoins.

See also  Will This "Dry Powder" and Historical Trends Fuel A Price Boom?

How Ethereum and other top altcoins have performed

Although the Bitcoin season is ongoing, Ethereum and several altcoins like Pepe [PEPE] and Dogwifhat [WIF] have seen substantial gains recently. Analysis shows that PEPE has outperformed Bitcoin by over 1,000% in the last three months.

Its daily timeframe chart indicates multiple all-time highs recently and a strong bull trend, as confirmed by its Relative Strength Index (RSI).

Similarly, WIF increased by over 800% in the same period and remained in a strong bull trend. At the time of writing, WIF is trading around $3.70, with an almost 9% increase.

Pepe, Ethereum and WIF price trend

Source: Santiment


Is your portfolio green? Check out the ETH Profit Calculator


Ethereum is also experiencing a strong bull trend in the oversold zone, according to its RSI. It is trading at approximately $3,890, with a modest increase of less than 1%.

These movements suggest that while Bitcoin dominates, significant momentum is building in the altcoin market.

 

Next: How Solana’s latest fee proposal could affect SOL’s inflation

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  • Bitcoin dominance has remained above 50%.
  • The altcoin season has yet to kickstart despite recent moves in the market.

Bitcoin [BTC] has experienced impressive price trends since the beginning of the year, and recently, Ethereum [ETH] has also shown significant upward movements.

With ETH’s current trajectory and the spikes in value of various other assets, the question of whether an altcoin season might be underway is raised.

See also  Bitcoin at $55K: Is a ‘Covid crash’ trend the key to a new rally?

Altcoin season not underway

Usually, when Ethereum starts to rally, it can signal the beginning of altcoin season. However, for the season to fully commence, other metrics also need to show significant movement.

As of now, the Altcoin Season Index on blockchaincenter.net stands at 35. For the index to indicate an ‘altcoin season,’ 75% of the top 50 coins must outperform Bitcoin.

Altcoin season index

Source: blockchaincenter

Bitcoin dominance holding back the altcoin season

A decrease in Bitcoin’s dominance can contribute to the onset of the altcoin season as traders diversify their holdings. They invest in other cryptocurrencies, shifting the market cap away from BTC.

Currently, the cryptocurrency market capitalization is around $2.55 trillion, according to CoinMarketCap. BTC dominance is over 52%, leaving altcoins with less than 50% of the market share. Within this, Ethereum holds 18.2%.

Furthermore, the BTC price tends to stabilize and remain stable after a significant price trend. This stability can prompt market participants seeking short-term gains to sell their Bitcoin and move into altcoins. 

Additionally, BTC’s high price can be a barrier for new traders, who may opt for altcoins instead. This shift in investment can contribute to a broader redistribution of market cap towards altcoins.

How Ethereum and other top altcoins have performed

Although the Bitcoin season is ongoing, Ethereum and several altcoins like Pepe [PEPE] and Dogwifhat [WIF] have seen substantial gains recently. Analysis shows that PEPE has outperformed Bitcoin by over 1,000% in the last three months.

Its daily timeframe chart indicates multiple all-time highs recently and a strong bull trend, as confirmed by its Relative Strength Index (RSI).

See also  Next altcoin season? All depends on ETH/BTC's performance and...

Similarly, WIF increased by over 800% in the same period and remained in a strong bull trend. At the time of writing, WIF is trading around $3.70, with an almost 9% increase.

Pepe, Ethereum and WIF price trend

Source: Santiment


Is your portfolio green? Check out the ETH Profit Calculator


Ethereum is also experiencing a strong bull trend in the oversold zone, according to its RSI. It is trading at approximately $3,890, with a modest increase of less than 1%.

These movements suggest that while Bitcoin dominates, significant momentum is building in the altcoin market.

 

Next: How Solana’s latest fee proposal could affect SOL’s inflation
Tags: AltcoinBoomIndexSeasontrigger

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Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

October 28, 2023
Tezos 2023 Outlook: An Overview of Tezos (XTZ)

Tezos 2023 Outlook: An Overview of Tezos (XTZ)

November 2, 2023
UK risks regulating NFTs the wrong way, says Mintable CEO

UK risks regulating NFTs the wrong way, says Mintable CEO

October 30, 2023
Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

August 3, 2024
How to Earn Keys to Boost Your HMSTR Airdrop

How to Earn Keys to Boost Your HMSTR Airdrop

September 10, 2024

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Masa Prepares for April Mainnet Launch with Over 1.2M Wallets and 23M Data Points

Masa Prepares for April Mainnet Launch with Over 1.2M Wallets and 23M Data Points

February 21, 2024
Bitcoin ETFs net flows cross $16B, led by BlackRock – What’s next for BTC?

Bitcoin ETFs net flows cross $16B, led by BlackRock – What’s next for BTC?

July 17, 2024
How NFTs And Real-World Assets Will Reshape Global Markets

How NFTs And Real-World Assets Will Reshape Global Markets

April 23, 2025
New crypto lending service launches in partnership with Anchorage Digital

New crypto lending service launches in partnership with Anchorage Digital

November 8, 2023

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