Bitcoin Remains on Top as Altcoin Season Fails to Materialize

The
cryptocurrency
market
experienced
a

significant
rally
last
week,

providing
a
much-needed
boost
for
many
short-term
speculators
to
turn
profits.

Bitcoin
led
the
charge,
surpassing
the
$64,790
mark,
though
the
momentum
appeared
to
have
eased
by
the
time
of
writing.

This
surge

was
mirrored
across
the

altcoin
landscape,
with
several
cryptocurrencies,
including
TRON,
Avalanche
(AVAX),
and
Chainlink
(LINK),
recording
impressive
gains
ranging
from
20%
to
30%
within
just
seven
days.

Despite
these
gains
among
widespread
altcoins,
Bitcoin
continues
to
exert
dominance
over
the
entire
market.

Bitcoin
Increases
Dominance:
What
Does
It
Mean
For
Altcoins?

The

altcoin
season

has
yet
to
build
up
steam
since
the
beginning
of
the
year
as
Bitcoin
continues
to
receive
the
lion’s
share
of
investor
attention.
This
is
clearly
reflected
in
the
Altcoin
Season
Index,
which
currently
registers
a
reading
of
22
and
tipping
the
scale
in
favor
of
Bitcoin.
The
scale
also
reads
a
29
on
the
Altcoin
Monthly
Index,
also
in
favor
of
Bitcoin.

Essentially,
the
index
works
by
analyzing
the
performance
of
various
altcoins
against
Bitcoin.
If
75%
of
the
top
50
altcoins
performed
better
than
Bitcoin
in
the
past
90
days,
it
is
altcoin
season.
If
75%
of
the
top
50
altcoins
performed
better
than
Bitcoin
in
the
past
90
days,
it
is
deemed
an
altcoin
month.
Interestingly,
the
last
official
altcoin
season
occurred
during
the
2021
bull
run. 

According
to

the
chart
below,
the
last
time
market
dominance
almost
tipped
in
favor
of
altcoins
was
in
January
2024,
when
it
climbed
above
75
for
only
a
few
days.
Nowadays,
the
scale
mostly
ranges
around
20
to
30,
pushing
the
altcoin
season
further
out
of
reach.
In
fact,
the
index
even
dipped
as
low
as
12
on
July
30,
further
highlighting
the
ongoing
dominance
of
Bitcoin.

Supporting
this
Bitcoin
dominance
trend
is
the
price
data
from
CoinMarketCap,
At
the
time
of
writing,
Bitcoin
is
trading
at
$63,850
with
a
market
cap
of
$1.26
trillion.
This
represents
a
6.92%
increase
in
the
last
seven
days.
As
such,
56.3%
of
the
entire
crypto
market
value
is
currently
sitting
in
Bitcoin.

What’s
The
Performance
Outlook
For
Altcoins?

Due
to
Bitcoin’s
dominance,
many
altcoins
now
tend
to
mirror
its
performance.
However,
there
are
periods
of
exceptions
where
some
altcoins
experience
notable
rallies
independently.
At
the
time
of
writing,
Ethereum
commands
the
largest
share
of
the
altcoin
market
cap
with
$314.2
billion.
Other
altcoins
collectively
hold
a
market
cap
of
$438.48
billion,
while
stablecoins
have
a
market
cap
of
$161.97
billion. 

The
most
impressive
gains
currently
go
to
Sun
Token,
a
stablecoin
swap
token
based
on
TRON,
which
has
gained
305%
in
seven
days.
Memecoins
Dogwifhat
(WIF)
and
POPCAT
have
also
gained
32.7%
and
76%,
respectively,
in
the
same
timeframe.

Undoubtedly,
altcoins
will
continue
to
see
varying
degrees
of
performance
based
on
their
individual
utility
and
market
adoption. 

Featured
image
from
Pexels,
chart
from
TradingView