🚀 Emergence of Altcoins in Progress — Market Dynamics are Evolving Rapidly
For much of the week, Bitcoin and large-cap altcoins dominated the cryptocurrency market. Bitcoin reached a new record of $124,100, while Ethereum and Solana flirted with their previous highs.
Ethereum temporarily reached $4,800 on Thursday, August 14. The latest on-chain data shows that ETH and other altcoins may be starting a long ascent that could surpass Bitcoin, the largest cryptocurrency in the world by market capitalization.
CryptoOnchain stated in a CryptoQuant Quicktake that current data suggests an altcoin season is underway. Stablecoin liquidity and Bitcoin dominance (BTC.D) are the main on-chain metrics supporting this optimistic theory.
First, CryptoOnchain reported that the supply of ERC20 stablecoins reached a record level of $128.7 billion. A significant increase in stablecoin supply generally boosts liquidity, allowing investors to purchase altcoins.
Moreover, active stablecoin addresses have surpassed 250K for the first time, indicating an increase in network activity and circulation levels before major market cycles.
In recent weeks, the net exchange flow of all Binance stablecoins (ERC20) has exceeded $67 million multiple times, according to the on-chain analyst. Positive net exchange flows enhance the purchasing power of investors, according to CryptoOnchain.
According to the chart above, BTC dominance has been rejected from its resistance zone of the previous cycle's Bull Run. These rejections have historically corresponded to a flow of capital from Bitcoin to mid and large-cap altcoins, an early indicator of altcoin season.
Increased liquidity of stablecoins and a technical rejection of Bitcoin dominance could $ETH