As of the last few months there really hasn't been much action in terms of the BTC markets. Prices have only just continued to hover from 50k - 70k but really in the 50k-60k marks for a while now.
As we can see from the chart above since mid March 2024 bitcoin really hasn't done much and has even seen a small decline over the last month or two. Sure there are options to grab up a bit more in terms of the volatility but overall the price really hasn't done much at all for 6 months time.
What we have seen in the past is when bitcoin stagnates like this often times people start to look outside of bitcoin into other projects in order to get those juicer mega rewards of 100% or higher.
This is also were the alt coin markets start to step in and with it there normally has to be some type of trend or catalyst to really make it move. For example 2017 was layer two tokens on Ethereum. 2020 was Defi and NFTs and so far this year there's been a few things like AI but nothings really grasp the attention yet. So the markets are ultimately primed for an alt coin market we just need some type of triggering event now.
What's Triggered AltCoin Seasons
We can look at the past to get some clues as to when alt coin seasons normally start. For example if we look at $BTC dominance we can see it's currently hovering around that 60% mark for a while now.
As we can see here when bitcoin has a dominance factor of 60% - 70% altcoin season normally sets in or at least has in the past. But what we can also see is a shift in major alts like Ethereum and now stables like USDT and BNB and also SOL taking up a good percentage of those caps.
At the moment this is still pushing alt coins down and most likely as far as I can tell will continue to push them down until 2025 a which point we should see bitcoin dominance back at a key factor that could very well trigger that alt coin season which so far a vast amount of alts have been taking a beating.
An altcoin season is something everyone is currently waiting on. A lot of alts are currently way down and are starting to be crushed under the pressure. But there's a few things to note on this level as well.
This altcoin season will not be like the last for two very clear reasons.
The first being that there are now more alt coins then ever and simply having a fast, feeless or unique blockchain really doesn't matter anymore.
The second being these alt coins need to have applications and use cases built around them. You can watch trends happening right now and I think the clearest example of this right now is WAX.
WAX used to be the dominate blockchain for crypto gaming however many new alternatives have now been released with some rather solid game options. Take for example Illuvium or Immutable and you'll quickly see that there's now major competition happening in the gaming space. Heck even AXIE is doing decently well as of late.
These are going to be key factors you are going to want to watch when the altcoin season heats up again.
Posted Using InLeo Alpha