Altcoin season might be on the horizon as several altcoins experienced gains of 5%-10% on Monday, while bitcoin remained relatively unchanged around $35,000. This shift towards riskier tokens is reflected in the decline of bitcoin’s market cap dominance, which is now at 52.5% compared to 54.3% in late October. Analysts suggest that this decrease in dominance could indicate a growing interest in altcoins and a riskier market stance among investors.
Ripple’s XRP Surges Following Approvals
Ripple’s XRP saw a significant jump of nearly 10% following recent approvals for the company to operate in Georgia and Dubai. This surge in price propelled XRP to become the fourth-largest cryptocurrency by market capitalization, surpassing Binance’s BNB. Other large-cap altcoins also experienced gains, including Cardano (ADA), Avalanche (AVAX), dogecoin (DOGE), Chainlink’s token (LINK), and UniSwap’s token (UNI), which rose by 5%-6% over the past 24 hours.
Blur’s Token and NFT Marketplace
Additionally, Blur’s token (BLUR), an NFT marketplace, saw a 32% increase in price, doubling in value over the past month. While bitcoin and ether (ETH) remained relatively stable, the broader cryptocurrency market, as measured by the Market Index (CMI), advanced by 0.6%.
Is This the Beginning of an Altcoin Season?
Analysts at ByteTree suggest that these recent altcoin gains could be the beginning of an “alt season,” where altcoins outperform bitcoin. They believe that as the market breadth improves and the Federal Reserve’s rate hiking cycle potentially comes to an end, there may be a more supportive environment for riskier assets.
ByteTree has adjusted its model portfolio to include altcoins such as NEAR, Stacks, LINK, and XRP, while reducing the weight of BTC. However, it is important to note that the current rally in altcoins may not yet qualify as a full-fledged altcoin season, as only 57% of the top 50 digital assets have outperformed BTC in the past 30 days, and 33% have done so in the past 90 days, falling short of the 75% threshold.
Factors to Consider for an Altcoin Season
For a true altcoin season to emerge, there must be a significant increase in market breadth, with a majority of altcoins outperforming bitcoin. Additionally, investors must be willing to take on more risk, as altcoins are generally considered riskier investments than established cryptocurrencies like bitcoin and ether.
While the current gains in altcoins are noteworthy, it is crucial to keep an eye on market trends and watch for any significant changes that may signal the beginning of an altcoin season. This includes monitoring the performance of individual altcoins, as well as the overall market sentiment and the actions of institutional investors.
Conclusion
In summary, altcoins have seen notable gains while bitcoin remains stable. The decline in bitcoin’s market cap dominance suggests a growing interest in altcoins and a riskier market stance among investors. Analysts speculate that this could be the beginning of an altcoin season, although further market breadth is needed to confirm this trend. As the market continues to evolve, it will be essential for investors to stay informed and make informed decisions based on the latest data and analysis.
