Altcoins on the Rise: Is a New Altseason Imminent in the crypto market?

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By A D

The much-anticipated altseason in the cryptocurrency market is getting nearer, as market sentiment signals a strong altcoins dominace, pointing to a possible market reshuffle.

The phenomenon of altseason has become a source of fascination for many crypto enthusiasts, as altcoins can offer greater returns on investment than Bitcoin. In recent weeks, there have been several signs that a new altseason may be on the horizon. There are thousands of altcoins currently in circulation, with more being created every day. While Bitcoin is often seen as the ‘gold standard’ of cryptocurrency, altcoins can offer different benefits and use cases. Some are designed to be faster or cheaper to use than Bitcoin, while others are focused on privacy or decentralization. Altcoins can also be used to speculate on different aspects of the cryptocurrency market, such as new technologies or trends.

Crypto enthusiasts are sure that its the time for altcoins to shine. One indicator is the performance relative to Bitcoin. Historically, altcoins have tended to outperform Bitcoin during periods of market growth. This is because investors are more willing to take risks with their money when they see the overall market trending upwards. In the past few weeks, we have seen a number of altcoins significantly outperform Bitcoin. For example, Ethereum, the second-largest cryptocurrency by market cap, saw significant rise after successful Shepela upgrade. Soon after Bitcoin’s rally seemingly slowed down. This could indicate ETH leading the potential altcoins surge.

The above chart shows the total cryptocurrency market capitalization, excluding Bitcoin i.e., altcoins , litecoins, stablecoins
To many, the cryptocurrency market cap excluding bitcoin, is key to understand the entire space. Image Courtesy: coinmarketcap

Another factor to consider is the overall market sentiment towards altcoins. In recent months, there has been a growing sense of excitement around their potential. AVAX, SOL, BNB have seen a rise of more than 5%. This has been driven by a number of factors, such as the increasing popularity of decentralized finance (DeFi) applications, which are often built on top of altcoin platforms. Additionally, there has been a surge in interest in non-fungible tokens (NFTs), which are also often built on altcoin platforms. When the alt season starts, it is expected that altcoin values will move higher and leave the band. These actions would mark the beginning of an altseason in top assets.

The Altcoin Dominance Index, which measures the share of the overall cryptocurrency market made up by altcoins, has been trending upwards in recent weeks. This suggests that investors are becoming more interested in altcoin currencies relative to Bitcoin. Another technical indicator to watch is the Altcoin Season Index, which tracks their performance relative to Bitcoin. This index has also been trending upwards in recent weeks, indicating that altcoins are starting to outperform Bitcoin.

While there are no guarantees, this is certainly an exciting time to be a cryptocurrency investor. If a new altseason does occur, we could see a significant reshuffling of the cryptocurrency market, with some altcoins becoming much more valuable than they currently are.

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