What is the Altcoin Season Index?
Are we in Altcoin Season yet?
Introducing Season's Altcoin Index:
If 75% of the top 100 coins outperformed Bitcoin in the last 90 days, it signals Altcoin Season. Keep in mind, stablecoins like Tether and DAI, as well as asset-backed tokens like WBTC, stETH, and cLINK, are not included.
Here are the indices from CoinMarketCap & Blockchaincenter
How can I know when Altcoin Season is?
During Altcoin Season, several typical market characteristics emerge:
• Altcoin dominance increases: Altcoins are collectively gaining more attention in the market#cryptocurrency In the recent Altcoin Season in May 2021, the combined market cap of the top 100 Altcoins reached around 130% of#bitcoin☀️ .
• Rapid Price Increase: Altcoins experience significant price increases across the board, often outpacing Bitcoin’s growth. For example, large-cap Altcoin prices achieved a return of 174% compared to 2% for BTC during the Altcoin Season from February to May 2021. Many narratives have emerged and are not limited to just one or two trends.
• FOMO: The overall market sentiment during Altcoin Season is usually bullish, driven by optimism about the potential for Altcoins to deliver substantial gains. The FOMO mentality is evident in the high 24-hour trading volumes across all large-cap coins, leading to increased buying pressure and price momentum.
What altcoins are used in this index? Is Ethereum an Altcoin?
We designed this index to select the top 100 coins listed on the market at the end of each day, excluding stablecoins like Tether and DAI, and asset-backed wrapper tokens like WBTC, stETH, and cLINK. Ethereum is considered part of the Altcoin mix in this index.
What is the methodology of this index?
This index uses the top 100 coins ranked in the market (excluding stablecoins and wrapped tokens) and compares their price performance.
over the last 90 days on a rolling basis. If 75% of the top 100 coins outperform Bitcoin over the last 90 days, it indicates Altcoin Season. If only 25% or less outperform Bitcoin, it indicates Bitcoin Season. This number is calculated on a scale from 1 to 100 and is updated daily.
What can I use this information for?
Altcoin Season often follows a similar pattern, where:
• Bitcoin price is rising rapidly, introducing positive bullish sentiment into the market. Bitcoin market cap is increasing, pushing Bitcoin dominance to a relatively high level.
• Then the price of Ethereum increases and more activity occurs on the network. More Dapps are being used and built, and there is a surge of users into the ecosystem, causing many narratives to gain popularity quickly.
• This uptrend causes market performance to improve across sectors, and the rising price attracts funds and capital to rotate out of Bitcoin and invest in other new opportunities. This is reflected in the market as Altcoin Season By monitoring the Altcoin Season index, you can measure data and visualize market sentiment.
