Investment analysis platform Alphractal has discovered that the dominance of altcoins is gradually weakening compared to Bitcoin's market control over the past month. This shift indicates a return of optimism towards altcoins as investors diversify their investments beyond major digital assets.
Current market data confirms this dominant trend, with several major altcoins performing strongly within 24 hours. XRP leads the top ten cryptocurrencies with a daily increase of 12.37%, trading at $3.52, with a weekly increase of 37.59%.
Following closely is Cardano, with a daily increase of 14.31%, reaching $0.8781, and a weekly increase of 27.78%, ranking second among major altcoins. Dogecoin saw a daily increase of 15.66%, reaching $0.2436, with a weekly increase of 24.63%, demonstrating its strength in the altcoin rotation.
Ethereum continues to rise, with a daily increase of 6.50%, reaching $3,646.67, and a weekly increase of 22.12%, supporting the strength of major altcoins. Solana saw a daily increase of 6.25%, reaching $183.14, with a weekly increase of 12.09%; BNB had a daily increase of 3.74%, reaching $744.95, with a weekly increase of 8.51%. [Tron] had a daily increase of 5.60%, reaching $0.3286, with a weekly increase of 11.28%.
Alphractal explains the reasons for the surge in altcoins.
Alphractal's methodology subtracts stablecoins from the dominance of altcoins to determine the dominance of speculative cryptocurrencies. This indicator excludes the influence of stable value tokens to highlight the performance of risk assets.
The dominance of altcoins has not yet reached the historical high of 25% that once indicated an altcoin boom. However, with the significant increase in the number of altcoins in today's market, this threshold may no longer apply, as the market share of individual altcoins is more diluted than in previous cycles.
The report found that in addition to Ethereum and stablecoins, monitoring the dominance of altcoins can lead to more effective altcoin investment strategies. During market transformation periods, this approach often yields higher returns than Bitcoin-based strategies.
Recent market trends indicate that after Bitcoin's long-standing dominance, signs of recovery are beginning to emerge in the altcoin market. The slow transformation suggests that institutional investors and retail investors are reducing their holdings in this market leader.
