Strong Signals Emerging for Altcoin Season
The cryptocurrency markets continue to show volatility, and strong signals indicate the onset of an altcoin season.
Some market commentators continue to express optimism, predicting that the altcoin market will reach a market capitalization of $1.4 trillion by the first quarter of 2025. These predictions particularly highlight the significant potential of altcoins for investors.
While whales continue to accumulate, individual investors remain on the sidelines. Recently, reports indicate that whales have accumulated a total of $1.6 billion worth of Bitcoin over the past 3 to 5 weeks. However, during this time, most individual investors tended to stay in Tether without actively participating in the market. This trend has led individual investors to generally miss out on the growing momentum of the market. Panic selling in the market is identified as one of the reasons behind this tendency.
The BTC dominance rate is allowing for an increase in altcoins in the market. This rate, which was at 60.55% in November, currently stands at 56.90%. Historical data shows that similar declines in April and November 2021 led to significant corrections in Bitcoin.
Interest in Ethereum is increasing. According to some key indicators, Ethereum is currently considered undervalued. A notable increase in institutional interest since November 5 has strengthened Ethereum's potential for the future. The ETF inflows for ETH have surpassed those of Bitcoin, further solidifying its position in the market. With the beginning of the altcoin season, Ethereum is at a critical turning point.
On the other hand, following last week's value increase of over 10%, Ethereum started this week with a drop of around 3%, testing levels below $3,600. However, there are expectations that Ethereum could see a rapid recovery supported by potential ETF inflows.
Solana is preparing for a rebound. Solana (SOL) has become the fourth largest cryptocurrency by surpassing Binance Coin in recent months. The price increase of XRP has negatively impacted Solana; however, its trading volume has risen by 39%, reaching $3 billion. Solana's strong ecosystem continues to attract investors.
Recently, Solana outperformed Ethereum in performance metrics. The popularity of Solana in the crypto market and its various use cases make it an important player in the cryptocurrency ecosystem.
XRP continues to receive support. Ripple's native asset XRP has reached a peak in 2024 due to Trump's election victory and the anticipated stablecoin projects. Following the recent surge, XRP has surpassed Solana and USDT, rising to third place in market capitalization. This ascent has been supported by expectations of a more favorable environment for cryptocurrencies in American politics.
Additionally, Ripple’s RLUSD stablecoin project is awaiting approval from the New York Department of Financial Services. Ripple plans to use the stablecoin alongside XRP for cross-border payment solutions. These projects could play a significant role in driving XRP's price increase, particularly if the lawsuit process concludes positively in 2025.
Expectations for the altcoin market suggest robust growth. Major financial institutions like BlackRock (BLK) and JPMorgan (JPM) support the potential processes of XRP ETF launches. Cryptocurrency experts predict that the altcoin market capitalization could reach $1.4 trillion by 2025. There are also forecasts that Bitcoin could rise to around $130,000. It is believed that the ETF sector will have a major impact during this expansion process.