For the last few months, altcoins have been suffering at the hands of Bitcoin. This follows an explosive movement from the coins led by Ethereum at the start of the week. Earlier in the year, altcoins were outperforming Bitcoin by a margin. This saw investors dub that period, altseason. In the same time, Bitcoin was having a market dominance of less than 50%. This would soon change and see Bitcoin grow in dominance. As Bitcoin grew in dominance, altcoins began losing momentum and finally recording losses.
In recent weeks, Bitcoin’s dominance has grown by up to 70%. This means that most investors have abandoned other coins like Ethereum and invested in Bitcoin. The constant outflow out of the altcoins has seen them lose value dramatically. However, the same has made Bitcoin very strong. The inflow has ensured it continues to rally and enjoy great support.
Ethereum Poised For A Rally Could Also Bring Back The Altseason
Although altcoins are suffering, they are far from dead. If they can get a lifeline, they can make a comeback. Ethereum looks poised to throw this at them. The largest altcoin has several signals that show it will rally soon. And as it climbs up, it will pull up the rest of altcoins.
Not only is Ethereum enjoying strong fundamentals, but there are changes that will boost its adoption. When it comes to fundamentals, the asset is having a high trading volume, only second to Bitcoin. It is also only second to Bitcoin when it comes to adoption and market dominance.
It is further poised for upgrades in the coming weeks, that will help it tackle its greatest challenge of scalability. This has been a huge problem with its blockchain now nearly full. It has seen new projects emerge and compete with it. And right now they are winning. With the new implementations that will go on to next year, it is set to take back its authority.
As Ethereum begins to rally more investors will anticipate a jump by altcoins and this could easily trigger the altseason.
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