Interestingly, a market intelligence firm has come forward with the projection that these digital assets are set to outpace Bitcoin, the world’s largest cryptocurrency by market capitalization, in the coming months.
Alphractal’s analysis examined two Altcoin Dominance metrics: one that excluded all stablecoins and another that excluded Ethereum and all stablecoins. Historically, the former has found strong support around 25%, a level that has often served as a springboard to major altcoin rallies.
As shown in the chart above, the Dominance metric fell to the 25% level before bouncing back to around 35% in 2020. Similarly, the metric declined to 24% before rallying to above 50% in 2021 — around the time of the last major altseason.
As of now, the Dominance metric is around 27.91% and could be facing a potential reversal as it approaches this crucial support. Hence, there is an increased likelihood for altcoins to witness major market moves over the next few months.
As for the Dominance metric — excluding ETH and stablecoins, the critical support stands around 18%. Breaching this support can be historically correlated to significant price movements that allowed altcoins to gain market share ahead of Bitcoin.
The on-chain analytics firm concluded:
These levels don’t guarantee the start of an Altcoin Season, but they’ve proven to be meaningful signals with a strong historical probability of leading to major market moves.
Ethereum still ranks as the second-largest cryptocurrency in the digital asset sector, with a market capitalization of over $302.2 billion. As of this writing, the ETH token is valued at around $2,504, reflecting a 1.6% price decline in the past 24 hours.
