Altcoins Ready to Steal the Show as Bitcoin’s Dominance Remains Below 50%
Bitcoin has seen significant growth in 2023, with an increase of over 80% since the start of the year.
However, altcoins have not seen the same amount of attention, with only minor gains in comparison. Based on certain market metrics, the moment for altcoins to outperform, popularly known as “alt season,” might be approaching soon. Alt season typically occurs after a Bitcoin rally; experts suggest it may be on the horizon.
On April 16, a crypto trader and analyst known as “Skew” made a few observations on altcoins and markets. They observed that altcoins and Ethereum (ETH) were leading in 24-hour volume, with a “large OI shift to altcoins here.” Open interest (OI) measures the number of active crypto derivatives contracts that have yet to be settled.
Alts and ETH leading in 24hr volume & large OI shift to alts here
Small thread on general market observations 👇 pic.twitter.com/QDJfG9oUDP
— Skew Δ (@52kskew) April 16, 2023
The analyst also noted that Bitcoin’s dominance has begun to decrease, falling nearly 4% in less than a week due to Ethereum’s rally after the successful Shapella upgrade on April 12. Currently, Bitcoin’s dominance is at 47.06%, and it has not exceeded 50% for two years since April 2021.
The analyst remarked that altcoin appreciation might be expected in the near future when BTC Dominance is declining. The analyst also drew comparisons to previous cycles, stating that there are similarities between the 2021 bottom consolidation when BTC showed strength first before a greater market rally.
Additionally, Ethereum seems to be leading the altcoins, and “if ETH is actually showing strength here, some altcoins are well undervalued,” the analyst said.
While some altcoins have experienced some significant gains – some even reaching +50% – the majority of altcoins have not made notable moves. Thus, alt season may have to wait a little longer.