Altcoin Season: The Rise of Smaller Cryptocurrencies

As the crypto market continues to evolve, traders are shifting their focus towards smaller cryptocurrencies in search of higher returns. This shift in attention has led to a decline in Bitcoin’s share of the crypto market, sparking speculation that we may be entering an “altcoin season.”

The rise of altcoins

According to Kelly Ye, head of research at Decentral Park, Bitcoin’s total share of the crypto market has fallen from its post-FTX high of 55%. This decline has been accompanied by a rise in the total market value of altcoins. Ye suggests that traders may now be looking to altcoins for gains, citing their potential for higher returns.

“We may have entered the early stage of an altcoin season,” Ye said.

The appeal of altcoins lies in their volatility. While they may be more susceptible to price swings, they also offer the potential for higher returns. In bull markets, risk-takers are drawn to these smaller cryptocurrencies, hoping to capitalize on their growth.

Bitcoin’s dominance has dropped to 47% over the weekend, down from highs of up to 55% in 2022. While Ye predicts that Bitcoin’s hold on the market will remain below 60%, but above 50%, the current trend suggests that altcoins are gaining traction.

Bitcoin’s declining dominance

As the crypto market continues to shift, one thing is clear: altcoins are gaining attention. Whether this marks the beginning of an altcoin season or simply a temporary correction, one thing is certain – the crypto market is full of surprises.

The ever-changing crypto landscape