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When it comes to the crypto market, one component is certain: When bitcoin (BTC) prices rise, altcoins follow suit. This phenomenon is regarded as ‘altcoin season’ and has been observed seeing that BTC debuted in 2009.
As BTC fees rise, traders diversify their portfolios with altcoins, creating a wave of buying exercise that drives up their prices. Historically, the altcoin season has usually followed an expand in BTC prices.
Hence, the cutting-edge surging market begs the query – is this an altcoin season? Let’s use some historic metrics and references to make more sense.
Investors flock to lesser-known cryptocurrencies throughout altcoin season for quick and hefty returns. This influx of investors causes a surge in trading volume as greater human beings purchase and sell altcoins hoping to make a windfall.
The most recent example of an altcoin season happened when the whole cryptocurrency market cap surged from $350 billion in late 2020 to almost $3 trillion in 2021. During that time, the top 10 coins by means of market capitalization saw their trading extent make bigger by way of over 500%.
The surge in trading quantity at some stage in the altcoin season is now not new. In 2017, the total market cap of cryptocurrencies surged from $17.7 billion in January to a high of $813 billion in December. During that time, the trading quantity of the top 10 cash by way of market cap elevated through more than 700%.
As BTC’s rate has been progressively increasing, the trading volumes of the cryptocurrency have been telling a one-of-a-kind story.
According to the chart above, the buying and selling volumes are nowhere near the preceding stages when the past bull runs occurred. This suggests that the cutting-edge rise in the charge has likely resulted from whale manipulation, speculation, or a mix of both.