The crypto world has been buzzing about an “altcoin season”—a period where altcoins (cryptocurrencies other than Bitcoin) outperform Bitcoin—for months. While it hasn’t happened yet, one firm thinks it’s just around the corner.
Altcoin Dominance: A Key Indicator
Alphractal, a market intelligence firm, predicts altcoins will soon surpass Bitcoin. Their analysis focuses on the “Altcoin Dominance” metric, which measures altcoins’ share of the overall crypto market. They looked at two versions: one excluding stablecoins (cryptocurrencies pegged to the US dollar), and another excluding stablecoins and Ethereum.
Historically, these metrics have shown strong support levels. When the first metric (excluding stablecoins) drops to around 25%, it’s often followed by a big altcoin rally. Similarly, when the second metric (excluding stablecoins and Ethereum) falls to 18%, significant altcoin price increases usually follow.
Currently, the first metric is near 27.91%, close to its historical support level. This suggests a potential upswing.
What This Means for Investors
Alphractal believes these metrics strongly suggest significant market movement is likely for altcoins in the coming months. They predict many altcoins will outperform Bitcoin, regardless of whether Bitcoin’s price goes up or down. While these metrics aren’t a guaranteed altcoin season, historical data makes a major market move highly probable.
Ethereum: Still a Top Contender
Ethereum, the second-largest cryptocurrency, remains a major player, currently valued at around $2,504. Despite a recent slight price dip, its position in the market is undeniable.
