The cryptocurrency market is undergoing changes as leading altcoins demonstrate higher growth rates than Bitcoin. Recent reports highlight two phenomena: the cooling demand for Bitcoin and the rise of alternative tokens.
Altcoins See Significant Gains
Alternative coins like Chainlink (LINK) are showing strong performance. The LINK token surged by 13% yesterday, recovering earlier losses, and continued its momentum with a further 5% rise in the last 24 hours. Additionally, BNB, the token of the BNB Chain, reached a new record of $882 but has since stabilized around $862, remaining over 3% higher in the past 24 hours. Ethereum is also on the rise, advancing 7% to $4,350, signaling a potential retest of previous highs.
Bitcoin Slows as Demand Weakens
While altcoins are experiencing significant gains, Bitcoin's increase remains modest. Over the past 24 hours, the largest cryptocurrency has added only 0.2% and is approximately $113,800. A report from CryptoQuant indicates that demand for Bitcoin has sharply declined, falling from 174K BTC in July to 59K BTC on August 20. This slowdown also affects institutional activity, which has seen net inflows of only 11K BTC over the last 30 days, the lowest since April.
Is a New Altcoin Season Possible?
While altcoins are outperforming Bitcoin, analysts caution that this period may not resemble previous cycles. ByteTree analysts suggest that if an altcoin season emerges, it is likely to be selective, rewarding coins with strong fundamentals while weaker tokens may struggle. The Altcoin Index, currently at 41, reinforces this view, showing that altcoins are holding up well against Bitcoin and leaving room for further upside if investor momentum continues to shift toward these assets.
The rise of altcoins, alongside the weakening demand for Bitcoin, suggests possible shifts in the cryptocurrency market dynamics. Future trends will depend on the fundamental metrics of tokens and investor behavior.
