Bitrabo Editorial
Last week, the cryptocurrency market saw a notable surge, led by Bitcoin surpassing $64,790 before showing signs of stabilization. This rally also impacted various altcoins like TRON, Avalanche (AVAX), and Chainlink (LINK), with gains ranging from 20% to 30% within a week.
Despite impressive gains in altcoins, Bitcoin’s dominance remains unchallenged in the market.
Impact of Bitcoin’s Dominance on Altcoins
Altcoin season has not gained momentum since the year began as Bitcoin continues to attract the majority of investor interest. The Altcoin Season Index and the Altcoin Monthly Index both currently favor Bitcoin, indicating its dominance over the market.
These indices assess how altcoins perform against Bitcoin; in recent months, altcoins have not outperformed Bitcoin significantly, contrary to the last official altcoin season during the 2021 bull run.
The dominance of Bitcoin is further supported by its performance data, with a current trading price of $63,850 and a market cap of $1.26 trillion, representing a 6.92% increase over the past week. Bitcoin currently holds 56.3% of the total crypto market value.
Outlook for Altcoins’ Performance
Altcoins tend to follow Bitcoin’s performance due to its dominance, with occasional exceptions where certain altcoins experience independent rallies. Ethereum holds the largest share of the altcoin market cap at $314.2 billion, while other altcoins collectively have a market cap of $438.48 billion, and stablecoins hold $161.97 billion.
Noteworthy gains have been seen in Sun Token, a stablecoin swap token based on TRON, showing a 305% increase in seven days. Memecoins like Dogwifhat (WIF) and POPCAT have also recorded gains of 32.7% and 76% respectively in the same period.
Altcoins are expected to continue experiencing different levels of performance based on their utility and market acceptance.
Featured image from Pexels, chart from TradingView