Signs of an altcoin season are surfacing, with the Altcoin Season Index registering a two-month peak of 45 amid considerable weekly gains for altcoins, including Bitcoin [BTC]. As reported by Blockchain Center, this index, however, must achieve a score of 75 to solidify the advent of an altcoin season. Despite the lack of confirmation, the index’s gradual escalation from its standing of 18 at the month’s commencement is notable.
Curtailing jubilance, the major altcoin, Ethereum [ETH], is recording performative weaknesses when juxtaposed against Bitcoin, with the ETH/BTC ratio notably sinking to its lowest since 2021. Solana [SOL], Ethereum’s prime competitor and a top ten altcoin, has posted superior results relative to Bitcoin, surging by 12% over the week. However, the top 50 altcoins’ cumulative performance over the prior 90-day period suggests ongoing struggles, as most remain in negative territory; AAVE [AAVE] and SUI [SUI] exclude themselves as top performers with gains exceeding 50%.
Influential sectors such as decentralized finance (DeFi) and non-fungible tokens (NFTs) are also showing favorable altcoin impacts. According to DeFiLlama, the total value locked across the DeFi industry surged by over $10 billion in a fortnight, totalling $85 billion. Even so, room for growth is palpable, with current DeFi activity falling short of the annual peak over $100 billion.
The NFT sector also registered sales volume growth exceeding 40%, reports CryptoSlam. Nonetheless, Bitcoin’s dominance lingers, controlling 54% of the market, with a boost in its dominance possibly owing to Ethereum’s decline in dominance from 18% to 14% in 2024, according to Coinstats.