The cryptocurrency market saw a substantial rally last week, providing short-term speculators with an opportunity to secure profits. Bitcoin led the charge, breaking the $64,790 mark, though this momentum has since slowed.
This surge was echoed across various altcoins, with cryptocurrencies like TRON, Avalanche (AVAX) and Chainlink (LINK) posting gains of 20% to 30% within just seven days. Despite these gains, Bitcoin continues to dominate the market.
Bitcoin’s Dominance and Its Impact on Altcoins
Altcoin season has struggled to gain traction this year, with Bitcoin continuing to capture most of the investor interest. This is evident from the Altcoin Season Index, which currently stands at 22, favoring Bitcoin. The Altcoin Monthly Index also leans towards Bitcoin, with a reading of 29.
The index measures the performance of altcoins against Bitcoin. If 75% of the top 50 altcoins outperform Bitcoin over 90 days, it’s considered altcoin season or month. The last altcoin season occurred during the 2021 bull run. The most recent shift towards altcoins was in January 2024, when the index briefly exceeded 75.Now, the scale typically ranges between 20 and 30, keeping altcoin season out of reach. On July 30, the index even dropped to 12, further emphasizing Bitcoin’s dominance.
Supporting this trend is data from CoinMarketCap. At the time of writing, Bitcoin is trading at $63,850, with a market cap of $1.26 trillion, reflecting a 6.92% increase over the last seven days. Bitcoin now accounts for 56.3% of the total crypto market value.
Read more: Ethereum Co-Founder Highlights Key Tech Risks Today
Outlook for Altcoins
Due to Bitcoin’s dominance, many altcoins tend to mirror its performance. However, there are occasional exceptions where some altcoins rally independently. Ethereum currently holds the largest share of the altcoin market cap at $314.2 billion. Other altcoins collectively account for a market cap of $438.48 billion, while stablecoins have a market cap of $161.97 billion.
Among the top gainers, Sun Token, a stablecoin swap token on the TRON network, saw a 305% increase in just seven days. Memecoins like Dogwifhat (WIF) and POPCAT also recorded gains of 32.7% and 76%, respectively, within the same period.
Cre: Bitcoinlist
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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