Altcoins may soon rally as Ethereum leads the pack
According to some market polls, altcoins’ time to shine, often referred to as the “alt season,” may be right around the corner.
Bitcoin has been on fire in 2023, gaining more than 80% since the beginning of the year. However, the altcoins haven’t gotten much love, with only small gains in comparison.
The alt season usually follows a Bitcoin rally, and analysts suggest it could be on the horizon.
On April 16, crypto trader and analyst “Skew” highlighted a couple of observations on markets and altcoins.
He noted that altcoins and Ethereum (ETH) led in 24-hour volume. Furthermore, there has been a “big OI [open interest] shift to altcoins here,” he added.
OI is a measure of the number of active crypto derivative contracts that are still open and have not yet been settled.
Alt season approaching?
The analyst also observed that Bitcoin’s dominance had begun to wane. According to TradingView, BTC dominance has fallen almost 4% in less than a week. The decline is due to Ethereum’s rally following the successful Shapella upgrade on April 12.
Bitcoin dominance is currently 47.06% and it has failed to top 50% in two years, most recently in April 2021.
The analyst commented:
“When BTC dominance declines, it means altcoins will rise in the short term. But when BTC dominance increases, there is a flight to safety in the market.”
In addition, there was a comparison with previous cycles. The analyst stated that there are “some similarities between bottom consolidation in 2021 as BTC showed strength only before a major market rally.”
Furthermore, Ethereum seems to be leading altcoins as it did before. “If ETH is indeed showing strength here, some altcoins are well undervalued,” he said.
Commenting on the Ethereum rally, former BitMEX CEO Arthur Hayes implied on an all-season return late last week.
Altcoins Lackluster
The crypto markets have been relatively quiet over the weekend. Over the last 24 hours, the total capitalization has been stable at $1.32 trillion.
Altcoins are a mixed bag of red and green, with only a handful making some notable moves. Binance Coin (BNB) has gained 5% on the day and has reached $350 for the first time since early November.
Furthermore, Solana (SOL) is up 6% to trade at $25.81 at the time of writing. Avalanche (AVAX) is another solid performer, adding 8.8% on the day to reach $20.83.
However, the rest of the altcoins haven’t done much, so the alt season may have to wait a little longer.
Disclaimer
In line with Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, objective reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
