The cryptocurrency market is said to be in “Altseason” as the majority of the altcoins in the top 100 on CoinMarketCap.com rallied yesterday. Ether, ADA, Doge, and Ethereum Classic hit new all-time highs.
Several large-cap tokens reached multi-year highs but Bitcoin’s price struggles to hold any of the news-driven gains that it has accrued throughout the week. The recent pump in altcoins has led to the decline in the market dominance of Bitcoin over the past few weeks. According to analysts, this is another indication that the Altcoin season is here.
The market dominance of Bitcoin has dropped to 45.31% from the previous peak of 72.48% (as of January 2021) representing a 37.48% decline in market dominance. This means that the altcoin correlation with Bitcoin is relatively low and bitcoin is no longer a “drag” on other altcoins as bitcoin trades $56,500 (down by 12.84% from its all-time high) as at the time of writing this report.
What is causing the rally?
For Ethereum, over the past few months, high gas fees (transaction charges of the crypto world) have plagued the Ethereum network as a result of the volume of transactions executed on the network which is majorly driven by DeFi (decentralized finance) platforms such as Uniswap (UNI Token). This has caused investors to switch to other networks such as the Binance smart chain network which has cheaper gas fees. Ethereum just announced that its London hard fork network will be upgraded with the implementation of “EIP-1559.” This upgrade is expected for July 2021 and the network claims it will help to significantly reduce the gas fees.
ADA is going into the smart contract space with its “Alonzo Testnet” scheduled for lunch in May 2021. The recent rally in ADA should come as no surprise, as the popular saying in the crypto world goes, “Buy the testnet and sell the mainnet launch.”
Dogecoin, which started as a meme, created an all-time high following its listing on eToro and Gemini exchanges. The listing should come as no surprise because of the calibre of individuals that are pushing for the adoption of the coin – Mark Cuban, Elon Musk, Snoop Dogg just to mention a few names.
Ethereum Classic, popularly known as the “first Ethereum” has gained about 295% to create a new all-time high. Despite the security issues of the cryptocurrency, the coin has surged to new levels without any changes.
Other altcoins like Litecoin, EOS, Vechain, Steller have also surged significantly with gains of 20% or higher.