Several altcoins continued to perform strongly alongside Bitcoin (BTC), which hit an intraday high of $37,400 on November 15. Heading into this week, DYDX, Solana’s SOL (SOL) and Avalanche’s AVAX (AVAX) are all currently posting double-digit gains as they chase new year-to-date highs.
The continued bullish price action of altcoins has led some analysts to declare the arrival of altcoin season, and at the time of writing, the total market capitalization of the altcoin market has reached a 2023 high of $659.5 billion.
Altcoin price increases often involve a variety of factors, some based on sentiment and some based on underlying fundamentals. Let’s take a look at some of the market’s best performers this week and see what catalysts are behind their growth.
dYdX fee conversion increases prices
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In addition to the token price increase, the dYdX platform also reported significant user numbers, including increases in fees and revenue. Both metrics grew 77.5% in 30 days to $8.67 million. On an annual basis, this could mean $105.5 million in fees for validators and stakers.
SOL prices hit new high in 2023
The 30-day return for Solana’s SOL token is impressive, rising by more than 166%. Although Solana’s price reached a 2023 high on November 10, it is still more than 4 times below its all-time high of $259.96.
Solana’s price growth has been driven by an increase in user numbers led by the best-performing decentralized application on the blockchain, Jito, a liquidity staking platform. Solana’s daily active users also hit a new 2023 high on November 10, reaching 200,000. With the increase in users, Solana’s revenue exceeded $1 million in 30 days, a growth of 78.2%.
Avalanche’s AVAX Token Gains Momentum
Avalanche is a layer 1 blockchain like Solana where validators process transactions and receive tokens. Avalanche brings in less revenue compared to Solana and dYdX, but that hasn’t stopped its token from posting double-digit gains this week.
Despite its relatively small size, AVAX has been performing well. In the past seven days, AVAX has gained more than 59%, and in 30 days it has reached an impressive 118% growth. AVAX’s price remains more than 7 times below its all-time high.
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While these three altcoins are performing well, Bitcoin continues to dominate the overall market, with its dominance rate hovering above 50% since October 16. These funds typically flow into altcoins when Bitcoin dominance declines, which is usually the start of altcoin season.
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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