The cryptocurrency market has been experiencing an unprecedented drought, with the absence of an altcoin season surpassing the two-year mark. Despite widespread discussions and speculations surrounding the potential emergence of an altcoin season, no indicators have surfaced thus far.
Extended Duration of Altcoin Season Absence
Recent conversations on social media and cryptocurrency forums have centered around the remarkable absence of an “altcoin season” for an extended period. In essence, an altcoin season denotes a phase in the cryptocurrency market when the prices of alternative cryptocurrencies, referred to as altcoins, surge compared to bitcoin (BTC) over a span of weeks or months. The Altcoin Season Index, available on blockchaincenter.net, defines an altcoin season as the condition where 75% of the top 50 coins outperform bitcoin within the previous season (90 days).
The Altcoin Season Index
The present state of the index signifies an ongoing “bitcoin season” that has persisted since at least May 2021. Some analysts speculate that a past altcoin season may have occurred from late 2020 to November 2021. Nonetheless, it has been approximately two years since the last altcoin season. The most notable altcoin season to date commenced in the latter half of 2017 and concluded in the first quarter of 2018. As per the index, the majority of the top 50 cryptocurrency tokens currently underperform bitcoin.
At the time of writing, the cryptocurrency market is valued at $1.19 trillion, with bitcoin (BTC) constituting 49.9% of that valuation, while ethereum (ETH) accounts for 19%. Data from cryptobubbles.net reveals significant gains in numerous altcoins over the past 24 hours, with notable performers over the last 30 days. Compound (COMP) has surged by 153% in the past month, while bitcoin cash (BCH) has experienced a 163% increase against the U.S. dollar. FTX’s FTT has risen by 77% in the last 30 days, and PEPE has gained 63%.
Although several tokens have outperformed bitcoin (BTC) in the previous month, this has not triggered any signs indicating an imminent altcoin season, wherein alternative cryptocurrencies would surpass the market leader. Recent regulatory actions against the cryptocurrency industry, spearheaded by the U.S. Securities and Exchange Commission (SEC) and other U.S. regulators, pose a potential hurdle to the occurrence of an altcoin season. To date, the SEC has classified more than two dozen alternative cryptocurrencies as unregistered securities.
The SEC considers these tokens to be investment contracts that pledge future rewards and are centralized in terms of issuance and development activities. However, bitcoin (BTC) has not received this classification, being widely acknowledged as a commodity rather than a security. Notably, ethereum (ETH), the second-largest cryptocurrency in terms of market capitalization, has been labeled a security by the New York attorney general Letitia James in a lawsuit against Kucoin.
“In the lawsuit, it is argued that ETH, similar to LUNA and UST, is a speculative asset reliant on the endeavors of third-party developers to generate profits for ETH holders,” stated James in a court filing in March.
The extended absence of an altcoin season raises questions about the long-term prospects of alternative cryptocurrencies. We invite you to share your thoughts and opinions on this matter in the comments section below.
Frequently Asked Questions (FAQs) about altcoin season
What is an altcoin season?
An altcoin season refers to a period in the cryptocurrency market when the prices of alternative cryptocurrencies, known as altcoins, surge in comparison to bitcoin (BTC) for several weeks or months. It is characterized by a significant outperformance of altcoins over bitcoin.
How long has it been since the last altcoin season?
As per the current data, it has been over two years since the last altcoin season occurred in the cryptocurrency market. The previous significant altcoin season took place from the second half of 2017 to the first quarter of 2018.
What is the Altcoin Season Index?
The Altcoin Season Index, available on blockchaincenter.net, is an indicator that determines whether an altcoin season is taking place. It measures the performance of the top 50 cryptocurrencies compared to bitcoin over the previous season (90 days). If 75% or more of the top 50 coins outperform bitcoin, it is considered an altcoin season.
Why hasn’t an altcoin season emerged despite some altcoins outperforming bitcoin?
Although some altcoins have performed well in the past month, it has not triggered the emergence of an altcoin season. One potential factor is the recent crackdown on the cryptocurrency industry by regulatory bodies like the U.S. Securities and Exchange Commission (SEC). This regulatory environment may be hindering the conditions necessary for a widespread altcoin season.
How are altcoins affected by regulatory actions?
Will the absence of an altcoin season impact the future of alternative cryptocurrencies?
The prolonged absence of an altcoin season raises questions about the long-term prospects of alternative cryptocurrencies. It suggests a prolonged dominance of bitcoin in the market and may impact investor sentiment and interest in altcoins. However, the cryptocurrency market is dynamic, and future developments and market conditions could lead to the emergence of a new altcoin season.
More about altcoin season
- Altcoin Season Index: blockchaincenter.net
- U.S. Securities and Exchange Commission (SEC): sec.gov
- Cryptocurrency Market Analysis: cryptobubbles.net
- Bitcoin (BTC) Information: bitcoin.org
- Ethereum (ETH) Information: ethereum.org
- New York Attorney General Letitia James: ag.ny.gov