Altcoin Season Soars as DOGE & XRP Lead Rally
Altcoin Season Confirmed by Index Surge
The crypto market is officially in altcoin season, with the Altcoin Season Index reaching a high of 84. This value indicates that altcoins are currently outperforming Bitcoin, suggesting a shift in investor focus.
According to data from Blockchain Center, a score above 75 confirms the start of altcoin season, meaning investors are allocating capital to altcoins, seeking higher returns compared to Bitcoin.
Factors Driving the Altcoin Rally
Bloomberg analyst James Seyffart recently noted the arrival of altcoin season, attributing part of the rally to digital asset treasury companies investing in various altcoins.
While Bitcoin dominated for the past 65 days, the trend has reversed. Blockchain Center data shows altcoin seasons typically last around 17 days.
Capital is rotating from Bitcoin into altcoins, exemplified by the performance of meme coins like Dogecoin and infrastructure networks such as Ethereum and Solana. The sustainability of this altcoin season will depend on the index's movement in the coming weeks.
Key Altcoin Performers
The price action of leading altcoins reflects this trend:
- XRP: Trading above $3.15, gaining 12% in the last week.
- Ethereum: Remaining above $4,690, maintaining its upward trend.
- Dogecoin: Surpassing $0.30 after a nearly 10% rise in the last day.
- Solana: Holding steady near $240, recovering after the Alpenglow proposal.
Market commentator Milk Road notes that altcoin seasons tend to perform best when the U.S. ISM Purchasing Managers Index (PMI) is above 50, signaling economic expansion. Currently, the ISM PMI remains below 50.
This macroeconomic environment influences the current shift towards altcoins. Increased investor optimism and expanding PMI indices could lead to a surge reminiscent of the 2020-2021 altcoin season, where Ethereum, Solana, XRP, and Dogecoin reached new all-time highs.