This year, the cryptocurrency market has had a glorious run with achieving @ $2Trillion Market Capitalisation for the first time ever.
This glory was mostly upheld by Altcoins, as Bitcoin is still hovering around the $60K mark from a month ago. Now, this hints at the beginning of the Altcoin season 2021 as predicted and talked about by most crypto analysts and strategists.
Top Reasons Why This Can Be Termed as an Official Start to the Altcoin Season
Huge low – Mid Cap Altcoin Surges
In the past few weeks, the market has witnessed a massive boom of several low and mid-cap altcoins, making gains even better than market leader tokens.
Some of the examples are BitTorrent’s 2000% uptrend, WazirX’s massive 1400% surge in a month. Not to forget Theta, Filecoin, XRP, Tron, and many others
This trend suggests that capital from Bitcoin is getting influxes into altcoins, hinting at an altcoin hype storm.
Descending Bitcoin Dominance
Bitcoin’s Dominance is the best measure to analyze Altcoin’s prominence in the market.
The BTC dominance index is below 56% i.e 1 year low. This indicator shows Bitcoin’s market share in comparison to the rest of the market.
This descent in dominance means it has made way for Altcoins to increase their USD value and BTC value, for all the large mid and small-cap cryptocurrencies. Therefore this is another indicator of the beginning of the Altcoin season.
Capital Influx into Altcoins
It is historically true, that traders sell BTC and direct those funds into altcoins at the start of the season
As we are witnessing now, BTC dominance has reduced and Altcoins are seeing more trade.
The interest has shifted to altcoins now. the Google trends also second this, as the search for Altcoins has surged significantly.
The NFT Hype
Just like the ICO boom of late 2017 and early 2018, which paved way for ICO token offerings to surge high in the last Altcoin season.
This time it’s the NFT phenomenon that will fuel the Altcoin season. It is being noticed that NFT’s have seen more interest than ICO’s did.
The above trends, market developments are clearly indicating at the kick-off of Altcoin season, traders have to watch out for how hard this bull run will pump in the months to come.