Altcoin Market Posts Best Weekly Performance Since November 2022
When Covid spread globally, lockdowns led to a belief that nature was recovering, illustrated by reports of swans and dolphins in Venice canals. However, these claims were false, as there were no dolphins in Venice and global coal production increased post-pandemic.
Current Crypto Landscape
Five years later, the cryptocurrency market seeks signs of an impending altcoin season, which would indicate significant returns for altcoins. A potential indicator could be XRP surpassing SOL as attention shifts from AI and memecoins.
The term “altcoin season” has become less clear due to prolonged waiting periods. In this context, it refers to sustained and substantial returns for altcoins outside the top 10 cryptocurrencies.
Defining Altcoin Season
Altcoin season is defined as a period where the market capitalization growth of altcoins exceeds that of bitcoin for over three months since the bottom of the cycle. Confirmation occurs only when altcoins consistently outperform bitcoin over an extended timeframe.
Historically, there have been three distinct altcoin seasons since 2016, with the latest concluding in November 2021, marking the longest gap at 1,118 days.
Recent Performance
The altcoin market recently recorded its best weekly performance against bitcoin in this cycle, which began in November 2022. Bitcoin's market cap decreased by 0.3%, while the altcoin market (excluding the top 10) increased by 13.9%, yielding a difference of 14.2%.
For the first condition of altcoin season to be met, altcoin capitalization needs to rise by around 20% while bitcoin remains stable. The altcoin market has already more than doubled in the past five weeks.
The cryptocurrency market shows signs of recovery.