Altcoin season has not reached the desired level. Recent data shows a change that could nullify expectations. One criterion for the altcoin season was the approval of spot Ethereum ETF funds. Despite this process, altcoins remained quiet. What could happen in this process? Let’s examine it together.
What Is Happening in the Altcoin Market?
Altcoins seemed to continue their upward trends a while ago. However, this widespread rise did not last long, and during this period, the Altcoin Season Index value was 33. To confirm the season, the index needs to reach 75, meaning at least 75% of the top 50 non-Bitcoin (BTC) cryptocurrencies outperform the number one token.
At the time of writing, the index was 18, a rating it last reached on June 20 and before that in November 2023. This decline shows that it is difficult for altcoins to outperform Bitcoin, which recently reclaimed $70,000.
This decline can be attributed to the lack of interest from investors in several altcoins. If interest continues to wane, it may be challenging to find demand. This could cause prices to fluctuate at horizontal or lower levels as the altcoin season ends.
Details on the Subject
Despite the inadequate conditions of these cryptocurrencies, some market participants believe in the future of the season. One of those confident is Ty Blackard, co-founder of Magnify Labs, a decentralized lending market. According to the famous figure, the market will enter the altcoin season when Ethereum surpasses its all-time high.
During this process, memecoins will still exist, but analysts and data show that more investment will be made in tokens with more benefits or fundamentals. However, a comprehensive review of the altcoin market indicates that the altcoin season could pass, with or without Ethereum.
TOTAL2 is the total market value of 125 altcoins excluding Bitcoin. On the other hand, TOTAL3 is the market value of altcoins excluding Ethereum and Bitcoin. From the image below, we see that the trend of both market values is similar. Therefore, Ethereum’s price may not be significant for altcoin seasons as it was in 2021. However, if capital from Bitcoin flows into the sector, altcoin prices have a chance to rise. If this happens, the chances of this cycle increase.
