The cryptocurrency market has witnessed Big rise in the past week, Providing a much-needed boost for many short-term speculators to make profits. Bitcoin led the chargesurpassing the $64,790 level, although the momentum appeared to have waned by the time of writing.
This mutation This was reflected in Altcoin markets have seen a sharp rise, with several cryptocurrencies, including TRON, Avalanche (AVAX), and Chainlink (LINK), recording staggering gains of 20% to 30% in just seven days.
Despite these gains among the widely-used altcoins, Bitcoin still exerts its dominance over the entire market.
Bitcoin Increases Its Dominance: What Does It Mean for Altcoins?
the altcoin season Bitcoin has yet to gain momentum since the start of the year as it continues to command the lion’s share of investor attention. This is clearly reflected in the Altcoin Season Index, which currently reads 22, with the balance tipping in Bitcoin’s favor. The monthly Altcoin Index also reads 29, also in Bitcoin’s favor.
Basically, the indicator works by analyzing the performance of different altcoins against Bitcoin. If 75% of the top 50 altcoins outperform Bitcoin in the past 90 days, it is considered an alt season. If 75% of the top 50 altcoins outperform Bitcoin in the past 90 days, it is considered an alt month. Interestingly, the last official alt season occurred during the 2021 bull run.
according to The chart belowThe last time the market dominance flipped in favor of altcoins was in January 2024, when it rose above 75 for just a few days. Nowadays, the metric is mostly hovering around 20 to 30, pushing the altcoin season further out of reach. In fact, the index dropped to a low of 12 on July 30, further highlighting Bitcoin’s continued dominance.
Price data from CoinMarketCap supports this trend of Bitcoin dominance. 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 past seven days. As such, 56.3% of the entire cryptocurrency market cap is currently in Bitcoin.
What are the performance expectations for altcoins?
Due to Bitcoin’s dominance, many altcoins now tend to mirror its performance. However, there are periods of exception where some altcoins experience significant gains independently. At the time of writing, Ethereum controls the largest share of the altcoin market cap at $314.2 billion. The combined market cap of other altcoins is $438.48 billion, while the market cap of stablecoins is $161.97 billion.
The most impressive gains currently go to Sun Token, a TRON-based stablecoin, which has gained 305% in seven days. Memecoins Dogwifhat (WIF) and POPCAT have also gained 32.7% and 76%, respectively, in the same time frame.
Altcoins will certainly continue to see varying degrees of performance based on their individual utility and adoption in the market.
Featured image by Pexels, chart by TradingView