The altcoin market is experiencing unprecedented growth, resulting in a total cryptocurrency market capitalization exceeding $4 trillion.
Growth of Altcoin Capitalization
The capitalization of altcoins has significantly increased, with their market share reaching 42% compared to Bitcoin, which saw its dominance decrease from 62% to 58%. Ethereum notably surged over 20% in one week, reaching above $3,600. Other major altcoins like XRP and Dogecoin have also seen double-digit gains.
Indicators for Altcoin Season
Cryptorank's Altcoin Index jumped from 15 to 50 within a month, indicating that most of the top 50 cryptocurrencies now outperform Bitcoin. If the index exceeds 75, it will confirm the onset of a full-scale bull cycle. The Crypto Fear and Greed Index has remained in the 'Greed' range since June 23.
Investor Support
Key altcoins such as Ethereum, Solana, Cardano, Avalanche, Sui, and XRP have shown strong performance with 15-20% increases over the past week. Institutional funds are entering the market through spot ETFs and on-chain assets. Some analysts, like trader Peter Brandt, highlight a cup and handle formation in the altcoin market cap chart, which could lead to new highs.
The altcoin market demonstrates steady growth, and despite the decline in Bitcoin's dominance, overall interest in risk assets remains high. This may signal an imminent altcoin season.
