Last month, Donald Trump secured a second term in the White House, promising more crypto-friendly regulations. Since then, prices have been soaring, not just for Bitcoin, but across the entire crypto market, which is glowing green like a Christmas tree in December.
Is this the dawn of a full-blown altcoin season? Or is the market simply riding a wave of optimism that will end with the rise of Bitcoin?
The mother of all AltSeason is coming 🚀
— Elja (@Eljaboom) December 4, 2024
Lock in for the next 4-6 months and you'll be rich 🤑 pic.twitter.com/PKWGmnaBFZ
What’s Behind the Surge?
Everything we thought we knew about previous altcoin seasons is taking a back seat because key factors have shifted. For instance, the traditional signal marking the start of altcoin season, where capital flows from Bitcoin to altcoins, is now considered outdated. Instead, trading volume for altcoins has become more prominent, especially in pairs with stablecoins and fiat currencies.
Take a look at the chart below, which shows a spike in the total trading volume of altcoins against stablecoins, rising in tandem with Ethereum’s price surge.
CryptoQuant CEO Ki Young Ju believes: “This reflects genuine market growth, not just asset rotation.”
This change signals a more sustainable evolution in the crypto market, driven by increased liquidity and the growing stability of stablecoins.
Ki also highlighted a change in how capital flows into Bitcoin compared to previous market cycles. Unlike past bull markets, where retail investors dominated, the current rally is primarily fueled by institutional capital flowing into Bitcoin ETFs.
Why is altcoin season delayed?
— Ki Young Ju (@ki_young_ju) November 27, 2024
Compared to the last cycle, the nature of capital flowing into #Bitcoin has shifted. The current Bitcoin rally is primarily driven by demand from institutional investors and spot ETFs.
Unlike crypto exchange users, institutional investors and ETF… pic.twitter.com/dpDBCF0BTo
Analyst sentiment aligns with the Altcoin Season Index from Blockchain Center, which practically screams that the altcoin season is here. According to the index:
If 75% of the top 50 coins perform better than Bitcoin over the last season (90 days), it’s altcoin season.
Right now, the indicator shows that 90% of the top 50 altcoins have outperformed Bitcoin over the past 90 days.
After Bitcoin hit a wall just below $100,000 last month, it seems it’s now altcoins’ turn to benefit from renewed investor interest.
How Are The Altcoins Doing?
Dogecoin, XRP (Ripple), TRX (Tron), and even top metaverse tokens are riding the wave of jaw-dropping profits following Bitcoin’s meteoric rise.
Ethereum, which had been lagging behind Bitcoin’s growth this year, finally gained momentum over the weekend, hitting an eight-month high above $3,730.
Solana (SOL) also jumped, hitting a new all-time high of $263 in November.
Dogecoin has surged by plans to create a Department of Government Efficiency (DOGE) headed by none other than Elon Musk. The meme coin soared to a three-year high in late November.
$DOGE will run back to the highs very soon.
— CryptoAM17 (@CryptoAM17) December 4, 2024
New ATH is coming. pic.twitter.com/EPrgYS1Mh9
Some of these surging altcoins hadn’t seen significant growth in years, even among the most well-known names in the industry.
XRP, the token powering Ripple’s payment ecosystem, is leading the charge, which hit a seven-year high on Monday, breaking $2.82 — a 400% gain in just 30 days.
Tron (TRX) also sees unexpected gains, setting a new all-time high on Tuesday. Similar to XRP, Tron broke a seven-year high from January 2018, surging 69% in a single day to nearly $0.37.
Among the top 100 coins by market capitalization, Hedera (HBAR) claimed the week’s biggest gain, soaring by 137% in seven days. Not far behind, IOTA jumped by 130%, while Algorand (ALGO) jumped 84% over the same period.
Even metaverse gaming tokens like The Sandbox (SAND) and Decentraland (MANA) are riding the bullish wave. If this isn’t the dawn of an altcoin season, what is?
Dayo Paul
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