Changpeng "CZ" Zhao, the CEO of Binance, hinted at the potential rise of altcoins. In a post on platform X, he referred to the altcoin season index from CoinMarketCap, which has risen from 16 points a month ago to 51 points now.
Chao said: "CoinMarketCap provides an altcoin season index. I'm not sure how accurate it is, but it's increasing. The fear of missing out season is coming." To clarify, when the index exceeds 75, it usually indicates a true altcoin season, a period during which altcoins outperform Bitcoin, with traders focusing on the broader cryptocurrency market.
Over the past month, capital has clearly flowed into altcoins. Bitcoin's dominance has dropped to 61%, the lowest level since March, and the largest drop since June 2022, while the total market cap of cryptocurrencies surged from $3 trillion to $3.8 trillion in just a few weeks.
Additionally, the fear and greed index, a popular measure of market sentiment, is currently at 70 "Greed," indicating that investors are feeling confident and actively buying. While this typically signals strong momentum, it could also be a warning sign of a potential market correction.
Ethereum (ETH) has seen a sharp rise, increasing by about 110% in just 90 days. On April 1, the trading price of Ethereum was $1,823. By early June, it had risen to $2,529, and is currently at $3,674. It's not just Ethereum witnessing strong growth; Solana (SOL) has also risen by 47% over the past thirty days. Meme coins and small market cap tokens have experienced sharp increases as well, with BONK's price rising by 149% and FLOKI's by 128% over the last month, including a 33% increase this week alone. This volatility is not new. During the 2021 bull wave, altcoins rose by 170% while Bitcoin's price remained largely stable.
The same pattern seems to be repeating itself: Bitcoin's price rises first, followed by a flow of capital into altcoins. Notably, the altcoin season index that tracks this trend excludes stablecoins and tokens with limited market caps, focusing instead on the top 100 coins listed on CoinMarketCap to measure price performance only.
Analysts say it's still early
Market watchers say it's too early to describe this as a full altcoin season, as many traditional indicators of a bull market have not yet activated. Henry, known as the "Altcoin King," explained that out of 30 signals for a bull market peak, none have been triggered so far, with metrics like Puell, MVRV Z-Score, and Mayer Multiple all remaining in a safe zone.
He noted that Ethereum is starting to gain momentum, that liquidity is changing, and that both storage and layer two activities are increasing, but he emphasized: "We are still in a very early stage, so be prepared for what could be the strongest bull wave ever."
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The conversation coincided with a rise in the price of BNB. BNB, the cryptocurrency used for trading and paying fees on the Binance platform, reached an all-time high of $809.37 and continues to trade steadily around this level. Its trading volume has increased by 11%, and its market value is now $112 billion, placing BNB fifth among the largest cryptocurrencies.