Still Waiting For An Altcoin Season? These Metrics Show Why It Might Never Happen
Bitcoin has has yet to relinquish its dominance During this market cycle, many investors are still hold on to hope For the arrival of altcoin season. Still, given recent market trends, the altcoin rally may never materialize.
Crypto analyst Ali Martinez echoed this sentiment in a recent article on X, claiming that Altcoin season may never return. His observations revealed Market dynamics change And the big shift that has occurred since the last ALT season.
Why an ALTE season may never happen
cottage season defined by a period Prices quickly skyrocketed for all kinds of Altcoins. Additionally, Altcoin season is characterized by investors cashing out their Bitcoin profits and pouring them into AltCoins. This period is always accompanied by social media hype and FOMO among crypto investors eager to get in on the action.
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However, current market conditions have transformed the cryptocurrency industry from its early days into a new market with strong relationships with investors in the traditional financial sector. Additionally, the Altcoin market has expanded significantly since the last big bull run in 2021, and you could argue that it has become oversaturated.
Martinez A surprising statistic highlighted: There are now over 36.4 million altcoins in circulation. During the 2017-2018 Altcoin season, this was a sharp increase, while during the 2013-2014 bull cycle, the smaller volumes were smaller, less than 500 times.
The sheer scale of this supply explosion has fundamentally changed the cryptocurrency landscape, diluting attention and capital across a large number of assets. This oversaturation means that achieving widespread price surges among altcoins has become a more challenging proposition than in previous market cycles. Additionally, many of these altcoins have poor use cases or fundamentals that only serve to divert attention from the specific altcoins that have strong uses.
Could the era of Altcoin season be over?
Altcoin season concept Maybe a relic A less crowded market. Ethereum, the largest altcoin, has largely failed to meet expectations this cycle. Ethereum has been called the main driver of the past Altcoin season Always trying to gain momentum. Over a year on, even other altcoins such as Solana, XRP, Cardano, and Dogecoin continue to push towards multi-year highs.
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If Ethereum fails to live up to its established dominance and utility, it raises serious questions about the potential for other altcoins to rally. Instead, individual altcoins with strong fundamentals or unique propositions may continue to thrive while the rest of the market remains stagnant.
At the time of writing, CoinMarketCap’s dominance data shows that Bitcoin commands 57.9% of the total crypto market cap, having increased by 0.69% in the past 24 hours. Meanwhile, Ethereum is steadily losing ground, losing 1.07% of its dominance over the same period and now accounting for just 11.1% of the overall market.
Featured image from Istock, chart from TradingView.com
