- Bitcoin dominance has remained above 50%.
- The altcoin season has yet to kickstart despite recent moves in the market.
Bitcoin [BTC] has experienced impressive price trends since the beginning of the year, and recently, Ethereum [ETH] has also shown significant upward movements.
With ETH’s current trajectory and the spikes in value of various other assets, the question of whether an altcoin season might be underway is raised.
Altcoin season not underway
Usually, when Ethereum starts to rally, it can signal the beginning of altcoin season. However, for the season to fully commence, other metrics also need to show significant movement.
As of now, the Altcoin Season Index on blockchaincenter.net stands at 35. For the index to indicate an ‘altcoin season,’ 75% of the top 50 coins must outperform Bitcoin.
Source: blockchaincenter
Bitcoin dominance holding back the altcoin season
A decrease in Bitcoin’s dominance can contribute to the onset of the altcoin season as traders diversify their holdings. They invest in other cryptocurrencies, shifting the market cap away from BTC.
Currently, the cryptocurrency market capitalization is around $2.55 trillion, according to CoinMarketCap. BTC dominance is over 52%, leaving altcoins with less than 50% of the market share. Within this, Ethereum holds 18.2%.
Furthermore, the BTC price tends to stabilize and remain stable after a significant price trend. This stability can prompt market participants seeking short-term gains to sell their Bitcoin and move into altcoins.
Additionally, BTC’s high price can be a barrier for new traders, who may opt for altcoins instead. This shift in investment can contribute to a broader redistribution of market cap towards altcoins.
How Ethereum and other top altcoins have performed
Although the Bitcoin season is ongoing, Ethereum and several altcoins like Pepe [PEPE] and Dogwifhat [WIF] have seen substantial gains recently. Analysis shows that PEPE has outperformed Bitcoin by over 1,000% in the last three months.
Its daily timeframe chart indicates multiple all-time highs recently and a strong bull trend, as confirmed by its Relative Strength Index (RSI).
Similarly, WIF increased by over 800% in the same period and remained in a strong bull trend. At the time of writing, WIF is trading around $3.70, with an almost 9% increase.
Source: Santiment
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Ethereum is also experiencing a strong bull trend in the oversold zone, according to its RSI. It is trading at approximately $3,890, with a modest increase of less than 1%.
These movements suggest that while Bitcoin dominates, significant momentum is building in the altcoin market.
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