Emily Walker
In the recent 30 days, the cryptocurrency market has experienced a notable surge in investments, especially in the past two weeks. A significant portion of this influx has specifically targeted Bitcoin, leading it to achieve new all-time highs consecutively.
Ethereum, though slightly behind in gaining traction, has begun to see a substantial influx of investments in the last two days. Consequently, the leading altcoin has experienced a rise of approximately 24% within the past week. This increase has enabled it to surpass $3,000, marking its first time above this threshold since August. This remarkable surge in Ethereum’s price is drawing attention to the altcoin market, fueling discussions on the potential for an altcoin season.
Altcoin Market Cap Poised for Growth
Since early November, the collective market capitalization of altcoins—excluding Bitcoin—has surged significantly. As reported by crypto analyst Captain Faibik on the social media platform X, the altcoin market has shown an upward trend since hitting a low of $860 billion on November 4. Currently, the altcoin market cap stands at $1.095 trillion, reflecting a remarkable 27.3% increase in under a week.
This upward movement, stemming from growing investments in cryptocurrency, indicates the altcoin market cap has surpassed a descending trendline established since its March peak of $1.267 trillion. Analyst Captain Faibik remarked that the “altcoins party hasn’t started yet,” suggesting the possibility of an altcoin season on the horizon. He anticipates an additional $349 billion influx into the altcoin sector by year-end, which would represent a further 31.41% rise from the declining trendline. If this prediction holds true, it could lead to a new high for the altcoin market cap in 2024.
Potential for An Altcoin Season
According to CoinMarketCap, the Altcoin Season Index is currently at 38 out of 100, still away from the 75 mark needed to officially declare an altcoin season. However, the recent momentum suggests the start of an altcoin season may be imminent as the year progresses. An altcoin season is characterized by periods where altcoins yield better returns than Bitcoin, attracting investors to diversify their holdings.
At present, many high-cap altcoins are outpacing Bitcoin in terms of performance over both 24 hours and the past week. For instance, Ethereum, Solana, Dogecoin, and Cardano have recorded gains of 30%, 25%, 70%, and 52% respectively in the last week, while Bitcoin has observed a mere 16% increase during the same period.
Image credit: TheStreet, data from TradingView