Has the 'Altcoin Season' started?... Significant Increase in Market Cap and Trading Volume

Solana surpasses its all-time high

Ripple has surged since the end of last month

Major 'Blue Chip' altcoins continue to rally

Bitcoin is holding its breath with $100,000 in front of it, while the trading volume and market cap of Altcoins (excluding Bitcoin and Ethereum) are significantly increasing. The anticipation for Altcoin's rebound is rising, with expectations that the Altcoin cycle has begun.

According to the cryptocurrency industry, on the 25th of last month, the global cryptocurrency exchange Bitfinex stated in a research report that "the total market cap of Altcoins continues to rise, approaching the peak of May 2021 at $984 billion (approximately 1,372 trillion won)," and "as investment funds move from Bitcoin to Altcoins, the start of the 'Altcoin Season' is being announced."

The report further stated, "Especially, excluding Bitcoin and Ethereum, the market cap of Altcoins has recently surged, showing the largest increase since April 2021," and "(In terms of capital inflow) Solana and other major 'Blue Chip' Altcoins have rallied, reaching their all-time highs."

The report predicted that as individual investors' participation increases, the momentum of Altcoins will strengthen further.

According to the domestic cryptocurrency exchange Upbit, Ethereum is trading at 5.05 million won. Solana, ranked 4th in total market cap, rallied to 330,000 won. Especially, Ripple, ranked 6th in total market cap, expanded its recent surge, trading at 3,723 won. Ripple, known as the 'cryptocurrency litigation winner,' surged after the U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler expressed his opinion on the 22nd of last month.

As the trading volume of Altcoins increases significantly, the anticipation for a rebound is also rising. The cryptocurrency data analysis company Kaiko stated, "Among the total cryptocurrency trading volume, the proportion of Altcoin trading volume reached up to 74%, recording the highest level in three years," and "Altcoin trading volume began to surge from early November. The cryptocurrency market was led by Bitcoin, but recently the risk appetite has become more intense."

According to Kaiko, the weekly trading volume of the top 50 Altcoins in terms of market cap recorded $305 billion (approximately 425 trillion won) in early November, marking the highest level since October 2021.

Alex Kuptsikevich, a market analyst at FxPro, stated, "Recently, after Bitcoin received a short-term adjustment, the anticipation for Altcoin's rebound has increased," and "as investors move to Ethereum and other Altcoins, the Altcoin Season index has also surged significantly." According to the Blockchain Center, the Altcoin market's strength indicator, the 'Altcoin Season' index, recorded a new high of 78 in a week, marking the highest level since March. The Altcoin Season index, when it surpasses 75, indicates that the Altcoin Season is in full swing.

There is also an analysis that the volatility of the Altcoin market can intensify temporarily. The cryptocurrency strategy firm MyCryptoHalf stated, "The cryptocurrency market is entering a strong growth phase. The value of Altcoins compared to Bitcoin is likely to continue to rise," but also predicted, "The volatile momentum can lead to increased volatility."

Kang Min-seung, Bloomingbit reporter minriver@bloomingbit.io