The cryptocurrency market is anticipating an altcoin season, a period when alternative cryptocurrencies outperform Bitcoin. Attention is focused on XRP and ADA, which may see growth due to potential ETF approvals.
XRP and ADA Set for Growth
In February, Grayscale filed for an ETF to track the price of Cardano (ADA), while WisdomTree applied for the first XRP-based ETF with eight investment firms. The expected SEC decision could lead to price increases for both assets. At the time of this report, XRP and ADA were trading at $2.20 and $0.66 respectively.
When Does Altcoin Season Begin?
Sentiments from analysts and investors are varied, with different market participants having different timelines for the arrival of altcoin season. According to CryptoQuant's analysis, the ETH/BTC price ratio surged by 38% over the past week, possibly indicating an approaching altcoin season. However, it is noted that some altcoins do not appear in the top 20 by market capitalization.
Diverse Opinions on Altcoins' Future
Some analysts, like Benjamin Cowen, argue that altcoins are not ready for a comeback given the ongoing price bleed since 2021. Altcoin indexes show a value of 16, indicating that only 16% of altcoins have outpaced Bitcoin since March. It is also important to note that in some years, altcoins fail to outperform Bitcoin altogether.
As the market anticipates events such as ETF approvals for XRP and ADA, opinions remain divided on the prospects of altcoins. Expectations are high, but some analysts caution against potential risks.
