Bitcoin (BTC) has seen impressive gains over the past few weeks, but what really stands out is the strong resurgence of altcoins. For example, Ethereum (ETH) rose by almost 100% in a month. Memecoins such as Dogecoin (DOGE) and Dogwifhat (WIF) also performed strongly, with the latter rising by almost 300% in the same period.
The result of these developments? Bitcoin’s dominance has dropped from 65% to 62% for the first time in a long time. This is a clear indication that altcoin season is upon us, possibly sooner than many expect.
Currently, the total market cap of the crypto market is over $3,40 trillion. In early April, it was around $2,5 trillion. This increase in market cap, combined with the decline in Bitcoin dominance, signals a major shift: capital is flowing out of Bitcoin and into other cryptocurrencies.
Many altcoins seem to have bottomed out by now, meaning that the chances of further declines are minimal. Even if Bitcoin undergoes a correction, many altcoins are able to hold on to their recent price levels. The Altcoin Seasonal Index shows that 37 out of 57 monitored altcoins outperformed Bitcoin over the past two months. Coins such as Ethereum and Solana (SOL) are showing significant strength, and it would be wise to look closely at BTC pairs like ETH/BTC and SOL/BTC now for the best opportunities.
It’s been four years since we’ve seen a true altseason, when almost all tokens rose to their all-time highs (ATHs), and many projects still have significant upside potential. Take Cardano (ADA) for example, which is currently trading around $0,77 and is still 75% below its all-time high. Polkadot (DOT) also offers interesting opportunities, as it’s trading a whopping 91,2% below its peak. If altcoin season does indeed arrive as predicted, there are huge opportunities up for grabs, and it could be a rollicking ride.
Why Did Bitcoin's Dominance Decline?
Bitcoin's dominance declined as many investors withdrew capital from Bitcoin and invested it in altcoins, signaling an emerging altcoin season.
Which altcoins have performed the best recently?
Ethereum and Solana are some of the altcoins that have seen strong performances recently, with many altcoins outperforming Bitcoin.
What are the opportunities for the future?
Should the altcoin season unfold as it did earlier in 2021, there are significant opportunities for further price gains, especially for altcoins currently trading below their ATHs.