The cryptocurrency market is witnessing the arrival of the altcoin season, as signaled by an analysis from CryptoQuant. Ethereum takes center stage while Bitcoin remains less active.
The Arrival of Altcoin Season
CryptoQuant has declared that the altcoin season is here. Ethereum (ETH) has surged by 170% from recent lows and is currently approximately 23% off its all-time high of $4,871. Following Bitcoin's (BTC) breakout above $120,000, altcoins have started to thrive.
Surge in Altcoin Interest
Recent market changes indicate that Bitcoin is losing its market share, now accounting for about 58% of the total volume, a decrease from 61% a few months prior. Altcoins, especially Ethereum, are experiencing a surge with increased trading volumes. The futures volume for ETH and altcoins has reached $223.6 billion, marking the highest level in five months.
Return of Retail Demand
A significant factor in this market shift is the return of retail demand. Bitcoin transactions below $10,000 have increased by 9.7% in the last 30 days, indicating potential upcoming rallies for both Bitcoin and altcoins. However, increased retail participation often occurs towards the end of bull cycles, which may signal an impending conclusion of the current rally.
The observed growth of altcoins and the return of retail demand are key indicators of changing trends in the crypto market. However, potential investors should acknowledge that this may also point to the nearing conclusion of the ongoing bull cycle.
