The cryptocurrency market is showing signs of the approaching altcoin season, a period marked by rising prices of other assets relative to Bitcoin. Market participants often shift their attention and investment capital towards altcoins during this period.
Several key indicators are starting to point to a gradual shift in this market dynamic. This analysis delves into some of those factors.
Altcoin Season May Be Underway
One of those indicators is the growth trend of TOTAL3, an index that tracks the total market capitalization of all cryptocurrencies, except Bitcoin and Ethereum. Up to now, this number has reached 933 billion USD, an increase of 35% since the beginning of the month. To put it into perspective, this asset group has added $212 billion in the past 22 days.
As TOTAL3 approaches its all-time high of $1.13 trillion, it suggests investors are allocating more capital to altcoins. Notably, TOTAL3’s growth occurred during a period focused on the stability of Bitcoin’s (BTC.D) power.
According to the daily chart, BTC.D fluctuated between 61% and 58% since November 8. As of the time of writing, BTC.D stood at 59.30%.
When TOTAL3 spikes while BTC.D stabilizes, it is a key indicator of the possibility of an altcoin season. This means that investors are switching from Bitcoin to other cryptocurrencies, leading to an increase in demand and possibly higher prices for altcoins.
Furthermore, in one report Recently, on-chain data provider CryptoQuant has noticed an increase in the value of several Layer-1 altcoins since the conclusion of the US presidential election, confirming that an altcoin season may be underway. go out.
Cryptocurrencies such as XRP, TRX (TRON), TON, ADA, and SOL have seen their prices surge amid expectations that the new US administration will be more pro-crypto,” CryptoQuant stated.
Furthermore, CryptoQuant explains that an increase in spot trading volume has accompanied this price growth.
“Daily spot trading volumes for altcoins increased after the US presidential election and peaked at $18 billion on November 11, the highest since early August. Previously, spot trading volumes for altcoins have been silent since May.”
Altcoins Need More Time
While the above mentioned indicators suggest that an altcoin season is likely to take place in the near future, it should be noted that this will be confirmed when at least 75% of the top 50 altcoins outperform Bitcoin in a three month period.
However, data from Blockchain Center reveals that only 43% of these top altcoins have surpassed Bitcoin’s performance over the past 90 days — far below the 75% needed to officially declare one. altcoin season.