In the cryptocurrency market, attention has started to shift from Bitcoin to altcoins again. This period, known as the "altcoin season", is shaped by investors directing their capital to other cryptocurrencies instead of Bitcoin. So, how can we understand that this process has begun? Looking at the latest data and market indicators, there are strong signs that the altcoin season has begun.
Signs of Altcoin Season
One of the most effective ways to understand the altcoin season is to follow the TOTAL3 metric. TOTAL3 is an indicator that measures the total market value of all cryptocurrencies other than Bitcoin and Ethereum. Currently, this metric has reached $933 billion, an increase of 35% in just this month. In the last 22 days in particular, this value has increased by $212 billion. This is a clear indication that investors are starting to shift their capital to altcoin projects. What is interesting is that Bitcoin’s market dominance (BTC.D) has remained stable during this period. Since the beginning of November, BTC.D has fluctuated between 58% and 61%, and is currently at 59.30%. Despite the increase in TOTAL3, the fact that BTC.D has remained stable confirms that there has been a change in market dynamics.
One of the important supporters of the altcoin season is popular Tier 1 projects such as XRP, ADA, SOL, TRX. Following the US elections, significant increases were observed in the prices of these projects. In particular, expectations that the new administration would be crypto-friendly increased the demand for these assets. For example, altcoins such as XRP and SOL have made remarkable gains in a short time. This process also shows that the spot trading volume of altcoins has increased significantly. On November 11, the daily spot trading volume of altcoins reached $ 18 billion, reaching the highest level since August. Trading volumes, which have been stagnant since May, have revived in the post-election period.
Altcoin Season Still Needs Some Time
While there are many signs that the altcoin season has begun, it may still take some time for this period to officially begin. According to Blockchain Center’s Altcoin Season Index, 75% of the top 50 altcoins need to outperform Bitcoin in the last three months. However, this rate is currently only at 43%. Nevertheless, the increasing interest in altcoins suggests that this rate could rise in a short time. For investors, this means a transition period in which altcoins begin to attract more attention in the market. In particular, the growth in TOTAL3 data and the increase in spot trading volume indicate that the strong foundations of this process have been laid.
What Does It Mean for Investors?
Altcoin season can create great opportunities for investors, but it also brings some risks. Altcoins may gain value faster than Bitcoin during this period, but the volatility of the market should be taken into account. The direction of the market should be analyzed correctly with indicators such as TOTAL3 and BTC.D. While strong projects such as XRP, ADA, and SOL attract attention during this process, new altcoins with potential may also be of interest to investors. Although the conditions required for the official start of the altcoin season have not yet been fully established, strong signals of this process have begun to be felt in the crypto world. In the coming days, the performance of altcoins seems to play a decisive role in shaping this exciting period.
