Altcoins
Is Ethereum responsible for delaying the altcoin season?
- The Altcoin Season Index at 35 suggests that the many tokens were not out of the depression.
- A decline in ETH network growth and volume could hamper the recovery.
If there is a phrase that has been trending in the market for months with almost nothing to show, it is “altcoin season”.
So that the planned period comes to life, Ethereum [ETH] and others notBitcoin [BTC] cryptocurrencies must outperform BTC.
But that didn’t happen. In fact, AMBCrypto’s analysis of Blockchaincenter.net found that the time is not near. Depending on the platform, the Altcoin Season Index was 35 years old.
Alts fails to maintain preview
To confirm an altcoin season, the reading must be at 75. Interestingly, the index reached this high during the last week of January and the first week of March. But it melted within a few days.
Source: Blockchainceter.net
An overview of tokens like ETH, Cardano [ADA]And Ripple [XRP] showed that their prices had decreased over the past 90 days. Unless 75% of the top 50 cryptocurrencies outperform BTC, there will be no altcoin season.
Given the circumstances at the time of going to press, it can be assumed that the period was not close. Besides the index, ETH is a determining factor.
In 2021, the rise of Ethereum was one of the first players to activate the price increase that many altcoins experienced.
Notably, fewer than 20 altcoins among the top 50 have outperformed Bitcoin over the past 90 days.
But ETH was not one of them. Additionally, the cryptocurrency has not been able to make the type of moves it did during the last bull market.
ETH dashes hope
However, if the demand for ETH increases, the condition could change, and the price of the token could rise to test its all-time high. For this to take place, many new addresses must enter the Ethereum network.
To track this, AMBCrypto looked at the network’s growth. At the time of going to press, network growth on Ethereum was 3131, suggesting that adoption of the cryptocurrency has not been impressive.
Source: Santiment
If the metric continues to fall, the price of ETH could struggle to move to the north. In this case, the altcoin season could continue to be delayed.
On the other hand, strong network growth could spark a rally for the cryptocurrency and other top tokens. Meanwhile, an evaluation of the volume showed that it amounted to $10.31 billion.
Read Ethereum [ETH] Price prediction 2024-2025
At the start of ETH’s rise to its all-time high, the volume amounted to more than 40 billion dollars. Growing volume indicates interest in a cryptocurrency. If this is consistent, it could lead to higher prices.
Source: Santiment
Given the low volume, a notable increase in the altcoin’s price may be unlikely over the coming weeks. Additionally, altcoins may need to avoid waiting for ETH before embarking on multi-month rallies.