Altcoin Season: Is It Just Around the Corner?

by

🚨 Altcoin Season: Is It Just Around the Corner? 🤔

Altcoin Season: Is It Just Around the Corner?

As the seasons change, so do the fortunes of cryptocurrencies. Ethereum, the second-largest crypto asset and largest altcoin, has often been the harbinger of an Altcoin Season, its performance a harbinger of the market’s shift from a Bitcoin-dominated era to a more diverse landscape. And yet, despite Ethereum’s waning performance, the prospect of an Altcoin Season remains tantalizingly close.

Is An Altcoin Season On The Horizon?

With the crypto market’s volatility at an all-time high and Bitcoin’s dominance showing no signs of abating, the chances of an Altcoin Season seem slim. But, as Joao Wedson, CEO of Alphractal, points out, this very dominance may be laying the groundwork for a massive altcoin explosion in the not-too-distant future. Historically, altcoin seasons have followed periods of Bitcoin dominance, a trend that Wedson believes will repeat itself.

Wedson notes that Ethereum’s struggles have, in turn, stifled the growth of other altcoins in this market cycle. However, he remains optimistic, declaring that an altcoin season is “just a matter of time.” As the alt market struggles to break free from the shackles of Ethereum’s dominance, traders hold their breath, hoping for a shift that will unlock renewed gains across the altcoin sector.

In a recent post, Wedson delved into the world of altcoin market dominance, revealing an intriguing trend. As the chart below illustrates, altcoin dominance is in decline, while altcoin dominance excluding Ethereum and Stablecoins has remained stuck in a neutral zone since late 2022.

This development suggests that Bitcoin has siphoned off most of Ethereum’s market capitalization. Currently, Bitcoin’s dominance stands at 62%, with BTC and Stablecoin’s dominance nearing 71%. Meanwhile, Ethereum and all other alts dominate a paltry 29% of the market.

One might think that Bitcoin and Stablecoin’s dominance would spell doom for the upcoming altcoin season. But Wedson argues that the higher the BTC and Stablecoin dominance rise, the more robust the next altcoin season will be – a prospect that’s only a matter of time away.

BTC And Stablecoins Stealing The Spotlight

Daan Crypto Trades, a technical expert and trader, has also weighed in on the subject, noting that the altcoin market cap has taken a sharp hit, leading to a decline in altcoins’ dominance. Although it was on track for a while, the steady growth of Bitcoin and Stablecoins has put the alt dominance under intense pressure within the crypto market.

Given the dilution amongst them, individual alts have performed abysmally. Thus, for altcoins to regain dominance over Bitcoin, Stablecoins, and other major assets, the ETH/BTC pair needs to gather some momentum first.

Daan Crypto Trades claims Ethereum often plays a massive role in getting a wider altcoin performance. This is because many liquidity pools are denominated in ETH, and most coins are developed on it. Therefore, for altcoins to run, this wealth effect for ETH and majors is essential. 

Until this is the case, the analyst urges investors not to get into the market. Even though alt rallies are usually brief, there is frequently a high timeframe retest. Once it is evident that the trend is changing, Daan Crypto Trades believes this is the ideal time to get involved in the action.

Read More

2025-04-03 23:13