If you have been in the crypto space for a while, you would most likely have heard about the altcoin season hype. The crypto market is presently enjoying a good time, and that has started a few months ago. For the first time in history, the crypto market cap has surged past $2 trillion.
While most altcoins are enjoying a fair share of the market, surging in value, Bitcoin has struggled to break above $60K many times in the past few months. And really, that’s one of the major drives of an altcoin season.
So, if you are looking for the best cryptocurrency to invest in and wondering if we are already in an altcoin season, you should read this post. Here, we will show you four of the surefire indicators that we are in the altcoin season already. Ready? Then let’s get in.
Surefire Indicators That We Are In an Altcoin Season
#1: Bitcoin Dominance is dropping fast
If anyone is looking for the surest metric to determine an altcoin season, then it should be Bitcoin dominance. It indicates how much share bitcoin has in the market compared to other altcoins. Looking at recent reports about this, one can tell that the index is already at a 1-year below 56%.
Every day, bitcoin loses its dominance in the market. And every time this happens, it gives the chance for altcoins to gain even more steam. Because of this, altcoins in recent times have increased their USD value. This is not limited to the top players in the space. Even small and medium-cap cryptocurrencies are enjoying a fair share of the market. And that is a huge sign that an altcoin season will soon be upon us.
Compared to how it happened in 2017 – the last time we experienced an altcoin season, we can see that the drop in bitcoin dominance is, even more, this time.
#2: Massive altcoin gains
Yes, there have been huge gains in the altcoin ecosystem. Cryptos with medium and even low market capitalization have exploded in value in the past few months. The surge happened suddenly, and that applied to many coins in the crypto space.
A good example is the low cap cryptocurrency, WazirX which is now enjoying a total market capitalization of about $1.07 billion. In the past month alone, the project shot up in price at about 1400%.
What is even more interesting is that this project is presently the 97th biggest cryptocurrency based on market cap. Yet it has more than a billion market cap already. That shows how much growth the entire crypto space has experienced in the past few months.
Another good example is BitTorrent. Although the project is a bit bigger than WazirX, it surges by more than 2000% in the last few weeks, and that shows how much attention is coming to altcoins in general in the market. Other examples include THETA, Filecoin, etc. Considering this increasing flow of dominance from Bitcoin to altcoins, one will see that an altcoin season is very much in the making.
#3: Trading predictions tending more towards altcoins
This is another indication that an altcoin season is here. Looking at most trading platforms, you will see that traders now make more predictions on altcoin trading pairs than they do for BTC pairs. That is indicative of an altcoin season. Another thing that does happen during an altcoin season is that you will begin to see prediction expiration dates growing shorter “mid-season.” This is usually indicative of the fact that more crypto comrades are out looking for quick gains.
#4: 2017 ICO boom and 2021 NFT boom
Needless to say, this is another major factor to consider when trying to determine if an altcoin is in the brewing already. Traveling back in time to late 2017 and early 2018, we saw the influx of several tokens offered through ICOs flood the market. In fact, that occasion marked the biggest trend of the 2017 epic bull run.
But another trend has come now, thwarting that of the ICO hype. And that is the Non-fungible tokens (NFTs) trend.
In March 2021, there was a report by CryptoPotato showing that NFT experienced higher retail interest than ICOs did in 2017 and 2018.
How Should You Take Advantage of the Season?
Now that you know the altcoin season is much nearer than we expected, what are the things you should do to position yourself for the best in the season? The first thing is to ensure you have a solid plan for the season. You need to get prepared. Conduct research on the various altcoins available so you have a good idea of which will become the next big thing.
It is also a season to invest more in altcoins. This is usually better done when the altcoin season has not begun or shortly after it kicks off. When you invest in enough altcoins now, you can sell them later to make a good profit.
However, be careful not to be greedy during an altcoin season. It is one thing that usually leads to the downfall of many investors during the season. Don’t buy any coin when the price is out of the roof with the intention that it will continue to rise. The unfortunate can happen, causing you to lose all your investment. Instead, buy when the price is low and sell when it increases.
Before you go, you might also want to check out this post about Best Ethereum Faucets