The altcoin season may be approaching as major narratives begin to attract attention in the crypto world. AI Tokens and meme coins are becoming the focal point, accounting for 50.4% of the narrative market share and signaling a shift in investor focus.
This trend is supported by the rising market capitalization of altcoins, which has reached $837 billion, the highest level since the beginning of 2022. With altcoins still 35% below their ATH, significant growth opportunities are emerging as capital flows out of BTC and ETH into emerging opportunities.
Memes and AI Lead the Narrative Market Share
The emergence of strong narratives often signals the start of an altcoin season. As specific topics gain attention, they attract capital and attention away from the giants like BTC and ETH.
Currently, AI Tokens and meme coins are leading the trend, accounting for 50.4% of the narrative market share in the crypto space. This reflects the increasing shift towards these themes, setting the stage for a broader altcoin season momentum.
AI Tokens lead with a 27.76% narrative market share, while meme coins follow with 22.64%, highlighting the growing user interest in these specific categories. As both of these narratives gain traction, capital may flow into altcoins. This could reduce the dominance of BTC and ETH, benefiting the entire altcoin market.
Altcoin Season Could Drive 35% Growth
The current market capitalization of cryptocurrencies, excluding BTC and ETH, has reached $837 billion. This is the highest value since the beginning of 2022, reflecting a strong resurgence of interest in altcoins.
Despite the growth, this figure is still significantly lower than the ATH of $1.13 trillion in November 2021, highlighting the room for continued recovery.
At levels 35% below the ATH, the altcoin market appears to be undervalued compared to the broader crypto space. This gap suggests the potential for a significant surge as investors shift capital from BTC and ETH to Altcoins.
With increasing interest in new opportunities, altcoins could witness substantial growth in the coming weeks, kicking off a new altcoin season for this cycle.
