Today, there are visible signs of an altcoin season. Once the Bitcoin price has increased to $40,000, many altcoins and alternative cryptocurrencies perform very well. Historically, this is due to the good performance of altcoins in the first quarter of each year.
Altcoins rally is due in part to the dynamism of Ethereum. After breaking a major resistance at $600, ETH continued its rally above $1,000. ETH is now on the verge of hitting its new all-time high of $1,448. In the first two weeks of 2021, the ETH price increased by 60 percent. Perhaps altcoins have also performed particularly well in the past 14 days due to a positive trend towards ETH price.
Polkadot & Cosmos Show Significant Growth
Polkadot (DOT) and Cosmos (ATOM) in particular showed significant price increases in January. At the same time, DeFi tokens such as Aave, Yearn.finance and SushiSwap have outperformed both Bitcoin and Ether in the last two weeks.
In the meantime, the upward trend of DOT and ATOM could be fueled by the DeFi token hype, considering the demand for alternative blockchain networks has increased.
The Ethereum blockchain network has recently become overloaded as user activity on DeFi protocols has increased significantly. As a result, fees have increased again as well.
Protocols like Aave, SushiSwap, and Synthetix have seen rapid growth since November, driving Aave and Synthetix to billions in terms of market cap.
What Is Altcoin Season All About?
Altcoin Season or Alt Season is the part of the cryptocurrency market cycle in which many altcoins rise rapidly in price against the dollar and Bitcoin at the same time. A prime example of an alt season took place between late December 2017 and early January 2018.
In general, altcoins tend to be in a constant bearish state or in a state of stagnation. Either the price remains more or less the same or the curve points downwards. From time to time, one or two altcoins suddenly follow an upward trend. As a rule, this is due to a pump or promising news about some kind of innovation.
If we’re lucky, we’ll experience an altcoin season once or twice a year. All altcoin charts then shoot up to the moon. shoot together towards the moon. This trend usually lasts for several weeks or even months. This period of time is often referred to as the Alt Season by cryptocurrency traders and investors on social media.
When an altcoin season occurs, altcoins tend to outperform Bitcoin and the US dollar. In order to recognize early signs of the Alt season, it’s necessary to look at the price development of ETH or other Top 20 altcoins by market cap.
Altcoin Season is a very popular and long-awaited event among crypto enthusiasts. It usually takes place in the first quarter of each year. According to the calendar, we are currently in this first quarter of the year. In addition to Ethereum, other altcoins such as Polkadot, Cosmos, or Chainlink also show considerable price increases.
What do you guys think about Altcoin Season? Feel free to share your thoughts in the comments!
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