Altseason is already here!
A growth of hundreds of percent per week for a whole list of cryptocurrencies in the memcoin category could be an early sign of the start of the altcoin season, writes CoinDesk, citing a report from K33 Research.
Due to the rise in the price of memcoins, the market is increasingly discussing the possible beginning of the “so-called altcoin season” - a period when smaller cryptocurrencies in terms of capitalization outstrip Bitcoin and Ethereum in growth rates.
In the last 24 hours alone, the largest memcoins by capitalization have risen in price by tens of percent, according to CoinGecko. The growth leaders among them were Bonk (BONK) and DogeCoin (DOGE), Shiba Inu (SHIB), which increased in price by 37%, 16% and 20%, respectively, per day. Memcoins often rise significantly in price after Bitcoin and Ethereum rallies, and traders redistribute profits into altcoins. Over the past 30 days, leading memecoins have brought investors hundreds of percent profit. Trading volume in PEPE alone reached a record $3.6 billion in the last 24 hours. According to CoinGecko, the weekly price increase was 434.5%.
In its report, analytics company K33 Research states that, based on historical data, other altcoins should now begin to outperform Bitcoin in terms of profitability.
K33 Research notes that the main factor behind the current growth of the cryptocurrency market has been the influx of funds into spot Bitcoin ETFs. Analysts cannot say definitively whether traditional investors will continue to take risks by pouring money into riskier assets.
While there is now enough risk appetite to spur individual altcoins to growth, the flow of retail money needed for an overall rally in the altcoin market is not yet sufficient, analysts at K33 Research wrote in a report.
Swiss analytics company Swissblock said in a report that “all signs point to an imminent start to the ‘altcoin season’.” This could be confirmed by a breakthrough in the price of Ethereum (ETH) above $3,500, analysts noted.
