Bitcoin's historic rally past the $100,000 mark has solidified its position in the "unexplored waters," but the altcoin market is chaotic as some tokens struggle to keep up while others promise to explode.
Bitcoin has become the clear leader of the cryptocurrency bull market of 2024, with an impressive performance of 150% to date. In contrast, most altcoins are lagging behind, including the second-largest cryptocurrency, Ethereum (ETH). Ethereum has only increased by 69% this year and has yet to reclaim its all-time high from 2021.
However, altcoins like XRP and Solana have outperformed most of the market, emerging as potential leading coins in what analysts refer to as the next "altcoin season." Traditionally, altcoin season begins when Bitcoin's dominance over the total cryptocurrency market capitalization drops, usually below 40%. Currently, Bitcoin accounts for 54% of the total cryptocurrency market capitalization of $3.86 trillion, indicating that the market has not yet fully transitioned to an altcoin bull run.
According to Mena Theodoru, co-founder of the cryptocurrency exchange Coinstash, Ethereum will play a crucial role in signaling the change.
Theodoru stated, "Historically, when momentum shifts from Bitcoin to ETH, it signals broader market confidence in altcoins or the beginning of an altcoin season."
The surge above $4,000 for Ethereum for the first time since March has sparked optimism among investors, with over $2 billion flowing into ETH-based exchange-traded funds this month alone.
The CEO of Bitstamp USA, Bobby Zagotta, agrees with this view, predicting an upcoming altcoin season. "We are on the brink of that," he said. "Altcoins are outperforming Bitcoin in certain areas, and that could compete with the bull market we saw in 2021."
