Analysis of the market shows that the time for altcoins to shine may take more than a sprint.
- The Altcoin Season Index at 35 suggested that the many tokens were not out of depression. A decline in ETH’s network growth and volume might hinder the upswing.
If there is one phrase that has been trending in the market for months without almost nothing to show, it’s “altcoin season.”
For the anticipated period to come to life, Ethereum [ETH] and other non-Bitcoin [BTC] cryptocurrencies have to outperform BTC.
But that has not happened. In fact, AMBCrypto’s analysis of Blockchaincenter.net revealed that the time was not close. According to the platform, the Altcoin Season Index was at 35.
Alts fails to sustain the preview
To confirm an altcoin season, the reading has to be at 75. Interestingly, the index hit this height in the last week of January, and the first week of March. But it melted away within days.
Source: Blockchainceter.net
A look at tokens like ETH, Cardano [ADA], and Ripple [XRP] showed that their prices decreased in the last 90 days. Unless 75% of the top 50 cryptos outperform BTC, there will be no altcoins season.
Considering the press time circumstances, one can assume that the period was not close. Apart from the index, one factor that could determine is ETH.
In 2021, the surge in Ethereum was one of the first movers that activated the price increase that many altcoins experienced.
Notably, less than 20 altcoins out of the top 50 have outperformed Bitcoin in the last 90 days.
But ETH was not part of them. Furthermore, the cryptocurrency has not been able to make the kind of moves it did in the last bull market.
ETH dashes the hope
However, if demand for ETH surges, the condition might change, and the price of the token might climb to test its all-time high. For this to take place, a lot of new addresses have to come into the Ethereum network.
To track this, AMBCrypto looked at network growth. At press time, network growth on Ethereum was 3131, suggesting that the adoption of the cryptocurrency has been unimpressive.
Source: Santiment
If the metric continues to decline, ETH’s price might find it challenging to move northward. In this case, altcoin season might continue to be delayed.
On the other hand, a surge in network growth might spark a rally for the cryptocurrency and other top tokens. In the meantime, an assessment of the volume showed that it was $10.31 billion.
At the beginning of ETH’s rise to its all-time high, the volume was over $40 billion. Rising volume indicates interest in a cryptocurrency. If consistent, it could lead to higher prices.
Source: Santiment
With the low volume, a notable price increase for the altcoin could be unlikely over the next few weeks. In addition, altcoins might need to look away from waiting for ETH before going on months-long rallies.
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