An altcoin season could be on the horizon as key narratives gain momentum in the crypto space. AI tokens and memecoins are capturing the spotlight, driving 50.4% of narrative attention and signaling a shift in investor focus.
This trend is complemented by the rising market cap of altcoins, now at $837 billion, its highest level since early 2022. Furthermore, with altcoins still down 35% from their peak, the stage is set for significant growth as capital shifts from BTC and ETH to emerging opportunities.
Memes and AI leading the narrative
The emergence of strong narratives often signals the beginning of an altcoin season. When distinct themes gain traction, they divert attention and capital away from major players like BTC and ETH.
Currently, AI tokens and memecoins are leading the charge, capturing 50.4% of narrative attention in the crypto space. This reflects a growing shift in focus towards these themes, setting the stage for a broader push into altcoin season.
Narratives with greater attention. Source: Kaito
AI tokens lead with 27.76% of narrative share, while memes follow with 22.64%, highlighting the growing user interest in specific categories. As both narratives gain traction, capital is likely to move into altcoins. This could reduce the dominance of BTC and ETH, benefiting the overall altcoin market.
Altseason could drive 35% growth
The current crypto market cap, excluding BTC and ETH, has reached $837 billion. This is the highest value since early 2022, reflecting a resurgence in interest in altcoins.
Despite the growth, the value is still significantly below its peak of $1.13 trillion in November 2021, highlighting room for further recovery.
Total Crypto Market Cap Excluding BTC and ETH. Source: TradingView
Furthermore, at 35% below its all-time high, the altcoin market still appears undervalued compared to the broader crypto space. This gap suggests the potential for a significant upside as investors redirect capital from BTC and ETH to alternative coins.
With growing interest in new opportunities, altcoins could see substantial growth in the coming weeks, triggering a new altcoin season for this cycle.
The article 2 signs that indicate the beginning of the altseason, according to analysts was first seen on BeInCrypto Brasil.
