Altseason Index Hits 2024 Peak Amid Strong Altcoin Performance
Altseason indicators have surged to their highest levels this year, reflecting a significant shift in market dynamics as altcoins outperform Bitcoin. According to data from Blockchain Center and CoinGlass, the altseason index reached a score of 76 out of 100 this week, the strongest reading since December 2023. CoinMarketCap’s altseason indicator also climbed to 67, reinforcing the trend across major analytics platforms.
Defining Altseason and Market Context
Blockchain Center defines altseason as a period when at least 75% of the top 50 cryptocurrencies outperform Bitcoin over a 90-day span. This phenomenon typically occurs during bull markets, characterized by rapid gains in altcoins relative to Bitcoin. While the timing of altseason in 2024 has been challenging to forecast, current data suggests the market is entering this phase.
Market Cap Nears Historic Levels
Crypto trader “Daan Crypto Trades” noted that total altcoin market capitalization is approaching the all-time highs seen in 2021. Presently, the altcoin market cap, excluding Bitcoin and stablecoins, stands at approximately $1.63 trillion, close to the November 2021 peak of $1.7 trillion and the November 2024 figure of $1.64 trillion, according to TradingView data.
“Once the altcoin market enters price discovery, it is expected to generate broader market enthusiasm and increased risk appetite, potentially attracting new investors,” Daan Crypto Trades commented.
Trader Sentiment and Outlook
Crypto educator Karan Singh Arora highlighted the shift in trader sentiment, stating, “With the altseason index at its strongest reading in nine months, traders are beginning to lean risk-on again.” Similarly, trader Ash Crypto forecasted a parabolic surge in altcoins during the next phase of altseason, signaling optimism among market participants.
Top Altcoin Movers
In the past 24 hours, several altcoins have posted notable gains. Dogecoin (DOGE) rose more than 5%, surpassing the $0.25 mark, while Avalanche (AVAX) surged nearly 11% to $29, its highest price level since January. Other strong performers include Hyperliquid (HYPE), Stellar (XLM), Litecoin (LTC), and Toncoin (TON), each gaining over 3%.
FinOracleAI — Market View
The resurgence of altseason indicators to their highest level this year suggests growing investor confidence in altcoins relative to Bitcoin, likely fueling increased trading activity and capital inflows into the altcoin market. The proximity of altcoin market capitalization to historic highs further supports the potential for sustained upside momentum. However, risks remain from broader macroeconomic factors and Bitcoin’s price volatility, which could temper altcoin gains.
Impact: positive
