A green wave is sweeping across the cryptocurrency market, and it won’t be long before traders on X (formerly Twitter) start explaining that a new altcoin season has arrived.
Altcoin season, or as crypto bros call it “altcoin season,” typically measures altcoin rallies and positive market cap growth in the total altcoin market capitalization.
Let’s take a look at some of the key indicators that market participants use to determine whether altcoin season has begun.
Total cryptocurrency market capitalization hits 14-month high
The total cryptocurrency market capitalization recently hit a 14-month high, clearly reflecting the current bullish momentum.
The total market capitalization of cryptocurrencies hit a 14-month high. pic.twitter.com/0c6CPxDSfQ
— TradingView (@tradingview) November 6, 2023
Similar strength can be seen in the total altcoin market cap chart (TOTAL2). This metric measures cryptocurrency market capitalization minus Bitcoin (BTC).
Since September 8, the metric has jumped from $526 billion to $622 billion on November 9. This change shows the growing interest and investment interest among traders in altcoins, while the price of altcoins within this indicator is also rising.
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Large-cap altcoins show multi-week strength
Data from CoinMarketCap shows that the top 13 altcoins by market capitalization (excluding stablecoins) have experienced double-digit gains over the past 30 to 60 days.
Ripple (XRP), in particular, has gained 45% in the past 60 days after winning a series of legal battles with the U.S. Securities and Exchange Commission (SEC). In addition to the legal victory helping to boost investor sentiment, Ripple is rumored to announce an initial public offering on November 9.
Over the past three months, Solana (SOL) has surged and is starting to lose its “SamCoin” moniker. Sam Coin is a cryptocurrency associated with Alameda Research, FTX, and Bankman-Fried. SOL price has increased by more than 107% in the past 60 days as the project continues to rebuild and attract users after the FTX crash. BitMEX exchange co-founder Arthur Hayes also recently joined the Solana bandwagon, announcing that he purchased the altcoin on November 2.
Similar to Solana, Chainlink (LINK) has a 60-day return of over 100% due to consistent build and usage. Link also posted a 26% return in six days.
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Other outperformers include BNB (BNB), Cardano (ADA), Tron (TRX) and Polygon (MATIC), which also posted double-digit gains in 60 days.
Altcoin market performance appears to be in line with improving investor sentiment. A measure of market sentiment is the Fear and Greed Index. Since the fear started in September, the market turned greedy on October 23rd and has not reversed.
Whether or not this is truly altcoin season, it’s clear that excitement is returning to the crypto market.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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