- Although there is no guarantee of profits throughout the period, the altcoin season is generally a good time for traders and investors to diversify their portfolios.
- According to the founders of the on-chain analytics platform, Jan Happel and Yann Allemann, Ethereum breaking the $1,700 resistance was a sign that dominance was shifting to altcoins.
- Currently, the peak ETH dominance was -0.085 while for BTC it was +0.085. The difference between these values indicated that ETH had not yet changed BTC’s dominance.
According to the founders of the analytics firm, Ethereum seems to be preparing the ground for a potential altcoin season; Which altcoins are standing out?
Ethereum Ignites a Potential Altcoin Season
The founders of Glassnode stated that Ethereum, a leading altcoin with the largest market value, appears to be preparing the ground for a potential revival of the altcoin season.
The term “altcoin season” refers to a period when cryptocurrencies other than Bitcoin outperform BTC. Although there is no guarantee of profits throughout the period, the altcoin season is generally a good time for traders and investors to diversify their portfolios.
While the altcoin season is still in its early stages, the dominance of ETH increases and serves as a catalyst for others to gain momentum. According to the founders of the on-chain analytics platform, Jan Happel and Yann Allemann, Ethereum breaking the $1,700 resistance was a sign that dominance was shifting to altcoins.
The duo also noted that assets such as Cardano, Ripple, and Solana are preparing to gain more profits. However, Grayscale’s partial victory against the SEC seems to have reduced the potential for ETH to take over market dominance from BTC.
Glassnode provides insights about dominance using the BTC-ETH dominance metric. BTC-ETH Dominance tracks the macro performance trends between the top two crypto assets.
It compares only the Market Cap of Bitcoin with the combined Market Cap of Bitcoin and Ethereum. Lower values and downward trends indicate excessive performance by Ethereum. On the other hand, higher values and upward trends indicate that Bitcoin still dominates the market.
Currently, the peak ETH dominance was -0.085 while for BTC it was +0.085. The difference between these values indicated that ETH had not yet changed BTC’s dominance. Therefore, the continuation of the altcoin season may take some time.
ADA and SOL Keeping Up with This Situation
Is there really an increasing interest in Ethereum and other altcoins? One of the metrics that defines this possibility is social dominance. Social dominance compares the number of posts/discussions around an asset compared to the top 100 cryptocurrencies.
At the time of writing, ADA’s social dominance was 1.643%. SOL’s social dominance decreased to 0.774%, while XRP was 1.421%. While the metric decreased only for XRP, ADA and SOL increased. If social dominance continues at the same level or increases, the altcoin season may appear soon.
Historically, this season occurs approximately ten months before the Bitcoin halving. Given the current market conditions, the altcoin season may be a few weeks or months away.
