Learn which indicators are announcing the arrival of a new altcoin season.
Although the altcoin season or Altseason (Altcoins Season) It has not yet arrived, analysts believe that the crypto market is giving positive signals that announce that a new season for alternative cryptocurrencies to Bitcoin could be near.
The term altcoins is used to refer to all cryptocurrencies that are not Bitcoin. Therefore, the altseason or altcoin season, refers to the period in which these Alternative cryptocurrencies are beginning to experience significant growth and a significant increase in value, in relation to Bitcoin.
To know if we are approaching a new altseason, experts analyze the performance of these cryptocurrencies in the market.
Over the past 90 days, altcoins such as Chainlink (LINK), Solana (SOL), ThorChain (RUNE), Avalanche (AVAX), and Polygon (MATIC), have all outperformed Bitcoin. However, for an altcoin to be considered a altseason The altcoin season has arrived, at least 75% of the top 50 altcoins in the market must outperform Bitcoin over a 90-day period, which has not happened yet.
It's not altcoin season yet
Data from the Blockchain Center platform clearly tells us that Altcoin season is not here yet.
According to data from this platform, only 17 of the top 50 altcoins on the market have outperformed Bitcoin over the past 3 months.
Source: Blockchain center
Even though the above data indicates that we are not in an altcoin season, analysts see the current metrics of the crypto market as positive signs that one is coming soon.
Some of the metrics that can anticipate a altseason are Bitcoin market dominance, trading volume, liquidity, altcoin capitalization, and development and innovation.
Bitcoin dominance in the market
This metric indicates the percentage that Bitcoin's total market cap represents in relation to the total market cap of all cryptocurrencies. According to CoinMarketCap, Bitcoin's market dominance has been increasing over the past year and currently stands at 51,1%.
Source: CoinMarketCap
However, when Bitcoin dominance declines, it means that investors are diversifying their portfolios and betting on other options, which can boost the growth of altcoins.
Trading volume
Another metric related to the altseason is the trading volume on the market. This is an indicator that reflects the amount of money moving in the cryptocurrency market in a given period.
Source: CoinMarketCap
An increase in trading volume may reflect increased interest and demand from buyers and sellers, which can lead to more volatility and opportunities for altcoins.
Crypto market liquidity
Liquidity refers to the ease with which a cryptocurrency can be bought or sold without significantly affecting its price.
Greater liquidity means greater confidence and stability in the market, which can attract more participants and favor the development of altcoins.
Crypto market capitalization
Cryptocurrency market capitalization is another of the metrics that are related to the altseason and that may indicate whether we are approaching a new altcoin season.
This metric represents the total value of a cryptocurrency's circulating supply on the market. Therefore, a higher market cap implies a higher relevance and solvency of a cryptocurrency, which can increase its visibility and attractiveness for investors.
Altcoins with the highest capitalization, in general, tend to be the most established and with the greatest projection in the sector.
Source: CoinMarketCap
The altcoin market is experiencing strong growth, with total market capitalization exceeding $680.000 billion at the time of writing.
In the past year, the market capitalization of altcoins has grown by nearly 35%, from $505.000 billion on November 18, 2022, to over $680.000 billion on November 16 of this year, a fact that reflects the increase in the prices of many of the altcoins and shows the growing interest and confidence of investors in these digital assets.
Development and innovation
This metric refers to the ability of a cryptocurrency's developers to offer novel and efficient solutions to market needs.
Development and innovation can be a differentiating and competitive factor for altcoins, as they can capture the attention and support of the community, as well as generate advantages over other existing options.
Is altseason coming?
Considering the above metrics, along with the potential and performance that altcoins have shown in recent months, some analysts believe that a possible altcoin season is on the horizon.
However, besides these metrics, other factors could influence the market, so there is no definitive answer on this matter.
Earlier this month, MN Trading founder and CEO Michaël van de Poppe stated that altcoins have slowly gone speeding up in the market. He highlighted that several of the alternative cryptocurrencies to Bitcoin have entered a bullish cycle and that, in the first phase of this cycle, we will see many altcoins awaken.
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