cryptoglobe.com
At a time in which the flagship cryptocurrency’s dominance of the market appears to be dwindling, several altcoins have been showing signs of progress, with Ethereum ($ETH), $XRP, and Solana ($SOL) all moving upward over the last few days.
Such a shift in the crypto landscape suggests that a new altcoin season could be on the horizon. Yann Allemann, the co-founder of blockchain analytics firm, Glassnode, has seemingly backed this idea in a recently published tweet, where he points to ETH, SOL, and XRP’s recent rises and then notes that the “Altcoin Signal briefly crossed into the altcoin season before falling back to the 40s range.”
Other altcoins like the meme-inspired cryptocurrency Dogecoin ($DOGE), he said, are “leading the charge in market gains.” In the short-term, he added, the ETH/BTC pair suggests that the flagship cryptocurrency will outperform, while ETH could take the lead over a longer time frame in what could potentially spark a new altcoin season.
On the Verge: The Slight Stirrings of an Incoming Altcoin Season
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) July 27, 2023
Altcoins and Swissblock Altcoin signal in the spot light:
🔵1/4: ETH is currently trading around $1,853, marking a 0.16% increase over the past 24 hours.#ETH #cryptocurrency
🔶2/4: Other major altcoins are also… pic.twitter.com/ggABGiXK1P
An altcoin season, it’s worth noting, is a period in which cryptocurrencies other than Bitcoin – known as alternative cryptocurrencies or altcoins – outperform BTC when it comes to price and share of the market.
Altcoin season usually happens when the overall cryptocurrency market is bullish, meaning that the prices are rising and the sentiment is positive, and often follows an initial surge in the price of Bitcoin itself. It starts with a decrease in Bitcoin’s share of the market, which signals altcoins are starting to outperform.
As CryptoGlobe reported a popular cryptocurrency influencer has recently predicted that the price of both $XRP and the meme-inspired cryptocurrency Shiba Inu ($SHIB) will surge exponentially in the next bull run, seeing the native token of the XRP Ledger “return to the top 3” and SHIB in the top 5, in surges that would be consistent with an altcoin season occurring.
Some data appears to show institutional investors are moving into the market, with crypto investment products focused on three major altcoins – Stellar ($XLM), $XRP, and Solana ($SOL ) – all seeing major inflows this month, which led to significant rises in their assets under management, even though the main surge in assets under management came from Bitcoin products.
According to CCData’s latest Digital Asset Management Review report, the positive performance of these altcoins helped the total assets under management of these products experience a miner increase of 1.14% to $33.7 billion, marking the second consecutive monthly growth. AUM for these products has grown 71.5% so far this year.
Featured image via Unsplash.