200 Interactions, 4 today
Price increases in cryptocurrencies other than bitcoin (BTC) have contributed to the digital-asset industry’s overall market capitalisation approaching $2 trillion, more than doubling in just a few months.
Bitcoin’s dominance has been declining and now stands at 51.08 percent, while altcoin dominance is increasing, which could lead to a rally.
Binance coin, Cardano, Polkadot, XRP, Litecoin, and Dogecoin have seen a large increase in market dominance as compared to the other top alts, according to the above table. Ethereum (ETH), regarded as the silver to Bitcoin’s gold, is regarded as the altcoin market’s hope. The emergence of bullish momentum for Ethereum could signal the beginning of the so-called altcoin season. With Ethereum forging its own course, altcoins face the daunting challenge of catching up and reclaiming some of Bitcoin’s market share.
Ben Lilly, co-founder and analyst at Jarvis Labs, recently gave an interview in which he discussed the ETH/BTC partnership. Historically, as Ether gained traction in comparison to BTC, it was a positive indicator for altcoins. According to the examples in the chart below, the ETH/BTC pair shaped what we might call the ‘Livermore Accumulation Cylinder‘.
He further commented:
“If ETH/BTC breaks up and out of this cylinder, it’ll be another moment where expectations of what is normal will be adjusted. This is when we will see fast price action, and likely an altcoin season.”
When other assets’ market capitalizations and ages increase, so can network effects. This, in essence, would potentially insulate many crypto assets from Bitcoin because they would have a lot of money added to them. As a result, altcoins will gradually deviate from BTC’s results.
” Ethereum will be the first asset to do this, simply because of where it’s at in terms of its life cycle and development. But in terms of being immune to Bitcoin’s price, this won’t happen for many years. In fact, I think there will always be some correlation to an extent.” Billy said.
According to the data, ETH has experienced a significant increase in transaction volume measured on a 7-day average. According to Glassnode, the number has now reached a one-month peak of about 142,789.956 ETH.
Previously, Fundstrat’s David Grider estimated that Ether might be on its way to $10,500.
However, as Longhash previously said, “the market cap of Ethereum” or some other altcoin “could quadruple and it would still trail Bitcoin.”