- The Altcoin Season Index at 35 indicates that many coins are not out of the depression.
- Low growth and size of the ETH network may hamper the rally.
If there is one phrase that has been trending in the market for months with almost nothing to offer, it is “altcoin season.”
For the period expected to come to life, Ethereum [ETH] And other than Bitcoin [BTC] Cryptocurrencies should outperform BTC.
But this did not happen. In fact, an AMBCrypto analysis for Blockchaincenter.net revealed that time was not forthcoming. According to the platform, Altcoin Season Indicator He was 35.
Alts failed to maintain preview
To confirm altcoin season, the reading should be at 75. Interestingly, the indicator reached this high in the last week of January and the first week of March. But it melted within days.
Source: Blockchainceter.net
A look at tokens like ETH and Cardano [ADA]And ripple [XRP] It showed that their prices had fallen in the last 90 days. Unless 75% of the top 50 cryptocurrencies outperform BTC, there will be no altcoin season.
Given the circumstances at the time of publication, one might assume that the period was not close. Aside from the indicator, one factor that can determine is ETH.
In 2021, the rise in the price of Ethereum was one of the first drivers that energized the price increase seen by many altcoins.
It is worth noting that less than 20 altcoins out of the top 50 altcoins have outperformed Bitcoin in the last 90 days.
But ETH was not part of it. Furthermore, the cryptocurrency has not been able to make the kind of moves it did in the recent bull market.
ETH shatters hope
However, if demand for ETH rises, the situation may change, and the price of the token may rise to test its all-time high. For this to happen, a lot of new addresses must come to the Ethereum network.
To track this, AMBCrypto looked at the growth of the network. At press time, Network growth On Ethereum it was 3131, which indicates that the adoption of the cryptocurrency has not been impressive.
Source: Santiment
If the scale continues to decline, ETH price may find it difficult to move north. In this case, the altcoin season may continue to be delayed.
On the other hand, a spike in network growth may cause the prices of cryptocurrencies and other tokens to rise. Meanwhile, the volume assessment showed that it reached $10.31 billion.
Read about Ethereum [ETH] Price forecasts 2024-2025
At the beginning of ETH's rise to its all-time high, it was amount It was more than $40 billion. The increasing volume indicates interest in the cryptocurrency. If it is consistent, it can lead to higher prices.
Source: Santiment
With low volume, a significant increase in altcoin prices may be unlikely over the next few weeks. Additionally, altcoins may need to look beyond waiting for ETH before continuing months-long rallies.