Altcoin Season On The Horizon; Ethereum Bulls Speculate Rapid Gains ⋆ ZyCrypto
The post Altcoin Season On The Horizon; Ethereum Bulls Speculate Rapid Gains ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement     The massive altcoin season, characterized by massive inflows in assets compared to Bitcoin due to bullish momentum, might be around the corner. The present sentiment leans towards Bitcoin, with the asset breaking multiple all-time highs, hitting $99K. While users speculate a possible altcoin run, certain factors hinder gains in the short term as macro factors remain bullish for the crypto market leader. Generally, an altcoin season occurs when about 75% of the top 50 crypto assets outperform Bitcoin. Crypto Experts Look To ETH Velocity A new CryptoQuant market report provided insights on the start of the next altcoin season. Although the status quo remains far due to slow inflows to Ethereum, analysts have pointed to improved velocity. The circulating velocity can reflect the state of the market in conjunction with the total supply. This shows how coins move within the market and trickle to decentralized finance (DeFi) protocols. “Velocity is calculated by dividing the total amount of coins moved in a year by the total supply, indicating how quickly coins circulate in the market. Past cycles show that when we see a parabolic rise, we also see an increase in circulation velocity, which reflects the growth of DApps and DeFi on the Ethereum network, resulting in more users and transactions.” At press time, velocity is about seven times the supply. However, the network remains a collateral asset for institutional investors. This will ignite inflows into its DeFi ecosystem, boosting lending and leverage. Improved Ethereum DeFi numbers often translate to higher velocity, which sparks altcoins. A positive run in ETH will see similar moments in top altcoins, especially on rival networks. Advertisement   ETH Outflows Affect Price Apart from the dominant Bitcoin run, which has outpaced projections since Donald Trump’s win, an altcoin season is currently threatened by a…
Filed under: News - @ November 23, 2024 3:16 pm