According to Glassnode, BTC and ETH are leading the pack with annual growth rates of 17.6% and 18.2%, respectively. Notably, Bitcoin’s annual performance has surpassed that of the overall altcoin market. The cumulative market capitalization of altcoins has shown less impressive growth, registering less than half the increase observed in the two primary cryptocurrencies since the beginning of the year.
Glassnode highlights that Bitcoin maintains its dominance, experiencing a monthly influx of approximately $20 billion. Bitcoin’s dominance has consistently risen, with its market capitalization increasing by a substantial 1000% since October 2023.
On February 18, Stockmoney Lizards analysts anticipated a surge in various Altcoins in the upcoming Altcoin season. The analysts shared a chart indicating that the market capitalization of altcoins has surpassed a significant support zone, poised for a price surge reminiscent of the tenfold gains witnessed in 2021.
While there have been some signals, it is still too early to confirm the onset of the altcoin season. Glassnode’s altcoin season indicator has exhibited positive momentum since October of the previous year and shifted decisively on February 4, following a brief pause during the news-driven sell-off triggered by the approval of the Bitcoin ETF in January.
Interestingly, the indicator has maintained its positive stance since then, indicating that the market is currently in a risk-acceptance mode, reflecting the confidence investors have in current altcoins.
Data from the Blockchain Center reveals that only 59% of the top 50 altcoins have outperformed BTC in the last 90 days. Although this index has seen an increase in recent days, it is still not sufficient to declare an altcoin season. To officially declare an altcoin season, this percentage must surpass 75%.
Related: Record Inflow of Funds into Bitcoin ETF Spot Funds
Glassnode concludes, “Our Altcoin indicator suggests more mature and potentially sustainable growth in the Altcoin market; however, it remains relatively focused on assets with higher market capitalization at this time.”
This implies that the signs of an impending altcoin season are consolidating, but it may still be premature to make this determination.
