The altcoin season did not arrive in July. Furthermore, analysts talk about the so-called August curse of Bitcoin. But this may play in favor of altcoins. The alt season may begin in a few weeks, most likely in September. This is the time period when tokens, aside from BTC, start to significantly rise in price. A commonly accepted definition of the altcoin season is a situation where at least 75% of the top 50 altcoins by market capitalization outperform BTC over the previous 90 days. Bitcoin's dominance (its share of the total cryptocurrency market value) has shown signs of weakening after reaching a record value earlier this year. When this metric decreases, capital historically flows into large altcoins, and then into mid-cap and small-cap tokens. Currently, this altcoin is Ethereum (ETH).
Moreover, improved liquidity often encourages participation from larger players who might otherwise avoid less popular tokens. All of this pulls capital into smaller tokens.
Additionally, when macroeconomic conditions stabilize and volatility remains restrained, investors more frequently seek higher returns among riskier assets.
Analysts are hesitant to say exactly which tokens will be pioneers of the upcoming alt season. However, a pattern is observed from previous market cycles, where top coins initially showed better results, followed by assets with smaller capitalization.
For example, traditional leaders have already shown growth: ETH (+37.9%), XRP (+49%). Solana (SOL) +1.67%, Cardano (ADA) +8.96%, and Dogecoin (DOGE) -27.5% showed worse results.💯💯💯$SOL