Bitcoin is the undisputed king coin. As is often the case, its subjects (altcoins) rely on its own decisions (price movements).
However, over the last three months, these altcoins have gained some traction of their own.
Is the altseason, in fact, here?
The altcoin season, also known as altseason, is determined by the performance of the top 50 altcoins over the previous 90 days (excluding stablecoins and asset-backed tokens). Looking at the top-50 list, it may appear that we are already in altcoin season.
Except it hasn’t arrived yet.
While many altcoins have reached new all-time highs in the last 30 days, the cryptos that have risen account for only 63% of the top-50 altcoins. When the threshold of 75 percent is crossed, an altseason is considered to have “arrived,” which we last saw in March of this year.
Surprisingly, the main alts on the rise right now aren’t the ones you’d expect. The performance of many well-known coins has been disappointing. Cardano, Litecoin, and Bitcoin Cash are a few examples.
Cardano went from being one of the most hyped coins to the one that disappointed the most investors. The cryptocurrency, which peaked as the third-largest cryptocurrency, was built on the expectation of the arrival of smart contracts. However, ADA’s performance on the charts has been lukewarm since then.
Nonetheless, while larger coins did not perform as expected, other alts such as Fantom, Shiba Inu (sigh), Solana, AVAX, a coin called AR, and others have risen by more than 400%.
What caused the “altseason?”
While the trigger cannot be a single incident or event, the DeFi boom will undoubtedly be the most significant contributor to the altseason (if/when it occurs).
Because the majority of the tokens on the top-performer list are native to DeFi chains that have performed exceptionally well in the DeFi space (Terra, Decentraland, Polkadot, and so on), it stands to reason that DeFi is to blame for the altseason.
However, while altcoins are on the rise, Bitcoin is not. Despite the fact that it has been 17 days since its all-time high, the king coin has fallen by only 8.22 percent.
On the price front, price indicators appeared to show that Bitcoin’s bearish trend was coming to an end soon. If the broader market remains bullish, BTC could rise even further and likely reach a new all-time high.
As a result, time is the most important factor right now. The longer Bitcoin consolidates, the more likely it is that an altcoin season will occur.