The interest in altcoins is growing at an incredible pace, backed by the increased Google search trends and high market turnover. While Bitcoin remains relatively flat above the $97K level, the altcoin market is now back in focus among retail traders and analysts, raising expectations of an altseason.
According to Google Trends, the search interest for the term “altcoins” hit 100 in early December. This increase is not a steady growth because it has been observed in the course of 2023.
In November, searches reached a high of 93 and then declined to 56 mid-month, which coincided with the market’s response to Donald Trump’s announcement of his presidential candidacy and Bitcoin’s record value.
In the past, similar search volume surges have pointed to the involvement of the retail investor, an essential component of the cryptocurrency price movements. The last similar peak was observed during the 2016/2017 bull cycle, which means that the cycle of interest in altcoins is repeating when the BTC price is stable.
Several other digital assets have come to light as the top performers in the current market cycle. XRP and XLM have each more than quadrupled this month but are still down from their all-time highs. On the other hand, Binance Coin (BNB) and Tron (TRX) have hit new highs in the market, indicating strong market activities.
Altcoin season indicators
Crypto analysts are paying attention to these trends in order to determine the general mood in the market. According to Jamie Coutts, the Chief Crypto Analyst at Real Vision, the market dominance of Bitcoin is not the only sign of an altcoin rally. Instead, market breadth, the number of assets trading above their Bitcoin counterparts, paints a different picture.
Coutts also notes that the Altseason Indicator, which currently sits at 67%, means that altcoins are in the consolidation phase. However, other analysts, including Daan Crypto Trades, say that the true altcoin season starts when this metric is above 75%. However, the indicator has not reached high enough levels to suggest that the altcoin season has started.
The Alt Season Index has been rising at a rapid pace in the past week.It's now sitting at 67, which means that 67% of the top 50 alts outperformed #Bitcoin in the last 90 days.Above 75%+ it's officially labelled as "Alt Season". https://t.co/3Z87crI8cx pic.twitter.com/qfHU6dhpSo
— Daan Crypto Trades (@DaanCrypto) December 2, 2024
According to Ki Young Ju, CEO of CryptoQuant, the transfer of assets from Bitcoin to altcoins is no longer the main factor that moves the market. Rather, the increase in trading volume of the altcoins is being driven by stablecoin and fiat pairs. He stated, “Stablecoin liquidity better explains the altcoin markets.” This futher suggests the shift to real-world application and unique features of the altcoins.
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