24 Mar Altcoins

Peercoin was the first altcoin to introduce the concept of staking, and this method has since gained popularity due to its energy efficiency compared to mining. Altcoin season happens when capital flows from Bitcoin into altcoins, driving their prices higher. Bitcoin dominance usually decreases as traders seek higher returns in smaller-cap assets.

It’s essentially a great time for non-bitcoin maxis.During a relatively brief period—typically weeks or months—the values of alts soar as investors move their funds from Bitcoin to other coins. As prices begin to climb and the altcoin season index trends upward, FOMO—fear of missing out—investments come into play. This creates a cascading effect that further drives altcoin prices to extraordinary levels for a limited time. Investing in diverse altcoins lets investors explore various market segments and technologies. For instance, DeFi tokens provide access to decentralised finance, while privacy coins appeal to those seeking transaction anonymity. This diversification helps capitalise on unique altcoin opportunities and spreads risk across different assets.

What signals alt season?

It’s important to identify potentially lucrative opportunities before the alt season starts. This text is informative in nature and should not be considered an investment recommendation. Any investment or trading is risky, and past returns are not a guarantee of future returns. The main reason, however, behind an altcoin failing is a lack of utility, meaning that its use case overlaps with another more popular altcoin that offers a very similar service to the user. In fact, there have been lots of altcoins after the launch of Bitcoin which failed or weren’t intended to survive in the first place, in many cases because they were launched as scam projects or pump-and-dump coins.

• The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price.
• Its reserve is held entirely in cash and short-dated U.S. government obligations, which can be tracked in monthly independent reports.
• Indicators such as BTC dominance, trading volume shifts, and capital flows into smaller coins often precede alt seasons.
• Shiba Inu is one of six dog tokens that sprouted from DOGE’s $2 billion legacy.
• We calculate the total cryptocurrency market capitalization as the sum of all cryptocurrencies listed on the site.
• Yet, it would lead to great price differences if five different projects were to bring a utility token for the same stock out on five different blockchains.

Prepare ahead and get a Tangem Wallet to securely hold your https://orbifina.co/ and make the most of the upcoming opportunities in the bull market. A spike in trading volumes for various alts is a notable indicator of the beginning of the altcoin cycle. Increased trading volumes reflect heightened activity in the crypto market and growing investor interest in alt-cryptos, resulting in enhanced liquidity and price fluctuations. The approval of exchange-traded funds (ETFs) focused on altcoins, such as Solana (SOL) and XRP (XRP), has the potential to draw more investments.

Conclusion: A Gradual Shift into Altcoins

A huge proportion of the value created and stored in cryptocurrency is enabled by smart contracts. The world of crypto now contains many coins and tokens that we feel unable to verify. In those situations, our Dexscan product lists them automatically by taking on-chain data for newly created smart contracts. We do not cover every chain, but at the time of writing we track the top 70 crypto chains, which means that we list more than 97% of all tokens. The “silver to Bitcoin’s gold,” Litecoin leverages Bitcoin properties to become a lighter, faster version of its predecessor. Early crypto adopter and computer scientist Charlie Lee created Litecoin two years after Bitcoin’s genesis block debut, making Litecoin one of the first altcoins to enter the market.

A great many cryptocurrencies are implemented as tokens that run on the Ethereum blockchain, for example, drawn to Ethereum because of its support of smart contracts. CoinMarketCap does not offer financial or investment advice about which cryptocurrency, token or asset does or does not make a good investment, nor do we offer advice about the timing of purchases or sales. Please remember that the prices, yields and values of financial assets change. We recommend seeking the advice of a professional investment advisor for guidance related to your personal circumstances.

What is the BTC dominance in altcoin season?

Ripple owns the decentralized public blockchain known as XRP Ledger, home of the XRP native coin. XRP is often referred to as “the banker’s coin” because it offers access to liquidity on demand. Investing in altcoins involves risks like high volatility, lower liquidity, and sensitivity to market sentiment. Newer or less-known altcoins can face sharp price swings due to speculative trading and hype. Their lower liquidity compared to major cryptocurrencies can also make large transactions more challenging without impacting market prices.

Ethereum and decentralised applications (DApps)

The history of altcoins began shortly after Bitcoin’s emergence, with Litecoin in 2011 being one of the first. These early altcoins typically sought to improve upon Bitcoin’s technology, offering faster transactions or more efficient mining processes. Over time, the scope of altcoins has broadened significantly, leading to the creation of thousands of different cryptocurrencies, each with unique features and uses.

A mix of established cryptocurrencies like Bitcoin and Ethereum, along with carefully chosen altcoins, creates a diverse, market-resilient portfolio ready to capitalise on different crypto trends. The term ‘altcoin’ applies to any cryptocurrency other than Bitcoin — the first cryptocurrency. Some altcoins are similar to Bitcoin, but they are all created on blockchains separate from Bitcoin’s blockchain.