The altcoin season is coming, have your tokens doubled in value?
Author: shaofaye123, Foresight News
The total market capitalization of cryptocurrencies has surpassed $28 trillion, with a 24-hour increase of 3%. BTC has broken through $81,000 USDT, setting a new all-time high. Ethereum has risen above $3,200 USDT, reaching a new high since August. Solana's market capitalization briefly exceeded $100 billion; Base's total transaction volume has exceeded 1 billion; Sui has broken through $3 USDT, setting a new all-time high.
The Greed Index is approaching 80, BTC is constantly breaking new highs, and tokens across various blockchains are soaring. Sector rotation is underway, with the TRON ecosystem seeing broad-based gains, MEME coins remaining strong, and the altcoin spring may be arriving.
Is the altcoin season coming?
The market is thriving. On Binance, only 20 tokens are in the red today. Is the altcoin season really coming?
Currently, the altcoin season indicator stands at 39. This indicator aims to measure the profitability of altcoins relative to Bitcoin. Specifically, it represents the number of tokens among the top 50 altcoins that have outperformed BTC's performance in the previous quarter (90 days). The higher the value, the more the current environment is considered an altcoin season. While all tokens are seeing broad-based gains, the current level has not yet surpassed the altcoin rebound in September, suggesting that the altcoin season may still be in its early stages.
The Bitcoin Dominance Index (BTC.D), a previously essential indicator for the altcoin season, may be slightly off, but it can still be used as an auxiliary tool for judgment. BTC.D represents the percentage of Bitcoin's market capitalization in the cryptocurrency market. When Bitcoin's market capitalization reaches the 65-70% range, the altcoin season typically arrives. Currently, this value is close to 60%, suggesting that the altcoin season in this bull market may be relatively delayed.
The altcoin trading volume on Upbit can also reflect the current state of the altcoin season to a certain extent. Generally speaking, when Koreans are in a frenzy of FOMO, and the trading volume reaches its peak, it is time to escape. However, the current level has not yet reached the altcoin rebound in September.
Which sectors are rising?
Based on the indicators, the current situation is still in the early stages of the altcoin season, and various sectors have already started a new round of speculation.
TRON Ecosystem
TRON ecosystem small games have seen broad-based gains, with HMSTR, CATI, and X experiencing impressive surges in recent days. X's 10-fold increase has perfectly capped Bit's million-fold journey. The strong performance of new tokens has also brought significant attention to Bybit, with a wealth effect that has led many to believe Bybit has become the Kucoin of 2021.
MEME Coins
MEME coins have been a strong performer in this bull market and will undoubtedly have a place in the current landscape. Binance's newly listed MEME coins, whether in the futures or spot markets, have continued to shine. Moodeng has already doubled since its launch, with a market capitalization of $400 million. Bitcoin ecosystem MEME coins have also seen broad-based gains, with WZRD up 25% in 24 hours, PUPS up 22% in 24 hours, and ORDI rebounding to $45, up 18% in 24 hours.
In addition, the Oracle sector has also seen significant gains, with TRB, a highly volatile token known for its pump-and-dump behavior, surging 50% recently. PYTH and API3 have also seen decent gains. The DeFi and Staking sectors have also seen notable increases due to the impact of ETF staking news. Meanwhile, the AI and modular sectors that performed strongly earlier this year may also be poised for their spring.
