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

Solana Surpasses All-Time High

Ripple Surges Since Late Last Month

Major 'Blue Chips' Breaking Resistance Levels

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While Bitcoin is pausing just shy of $100,000, the trading volume and market capitalization of altcoins (cryptocurrencies other than Bitcoin) are significantly increasing. With heightened expectations for an altcoin rebound, there are forecasts that an altcoin cycle is imminent.

According to the cryptocurrency industry, on the 25th of last month, global cryptocurrency exchange Bitfinex stated in a research report, "The total market capitalization of altcoins continues its recent upward trend, nearing the all-time high of $984 billion (approximately 1,372 trillion won) in May 2021," and announced, "As investment funds shift from Bitcoin to altcoins, it signals the start of an 'altcoin season.'"

The report further analyzed, "In particular, the market capitalization of altcoins excluding Bitcoin and Ethereum has recently surged, showing the largest increase since April 2021," and noted, "Large-cap 'blue chip' altcoins like Solana have broken major resistance levels and reached all-time highs." The report also projected that the momentum of altcoins will be further strengthened with the recent increase in participation by individual investors.

According to domestic cryptocurrency exchange Upbit, leading altcoin Ethereum is trading at around 5.05 million won. Solana, ranked 4th in cryptocurrency market cap, has surpassed 330,000 won. Notably, Ripple, ranked 6th in cryptocurrency market cap, has expanded its recent gains and is trading at around 3,723 won. Ripple surged after Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), known as the 'Crypto Grim Reaper,' expressed his intention to resign on the 22nd of last month.

With a significant increase in altcoin trading volume, expectations for a rebound are also rising. Cryptocurrency data analysis firm Kaiko stated, "The proportion of altcoin trading volume in the total cryptocurrency trading volume has soared to 74%, hitting a three-year high," and analyzed, "Altcoin trading volume began to surge from early November. Although the cryptocurrency market has been led by Bitcoin, the risk appetite has recently increased." According to Kaiko, the weekly trading volume of the top 50 altcoins by 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, analyzed, "After Bitcoin's recent short-term correction, the rebound in altcoins has continued," and noted, "The movement of investors shifting to altcoins like Ethereum has led to a significant rise in the altcoin season index." According to the Blockchain Center, the 'altcoin season' index, a bullish indicator for the altcoin market, rose by 15 to 78 in a week, marking the highest level since March. The altcoin season is considered to have arrived when the index surpasses 75.

There is also analysis that the volatility of the altcoin market may intensify for the time being. Cryptocurrency strategist Michael van de Poppe predicted, "The cryptocurrency market is entering a bull market. The value of altcoins relative to Bitcoin is likely to continue its rebound," but also warned, "The revived momentum could lead to increased volatility."

Minseung Kang, Bloomingbit Reporter minriver@bloomingbit.io