Altcoins Show Strength alongside Bitcoin: Dawn of a New Altcoin Season?
Summary:
On November 15, Bitcoin, dYdX, Solana, and Avalanche saw significant growth, signalling the possible arrival of an altcoin season. dYdX's price surge is tied to its innovative fee distribution to validators and stakers, while Solana's growth is driven by a surge in users. Avalanche also registered sizable gains despite less revenue than the other two. Despite Bitcoin's continued market dominance, these rising altcoins signal a potential shift towards an altcoin season.
On the 15th of November, Bitcoin (BTC) was not alone in portraying a display of strength, as it secured an intra-day peak of $37,400. Alongside BTC, dYdX, Solana (SOL), and Avalanche (AVAX) all mirrored the positive trend, with each exhibiting double-digit gains for the year-to-date. As we consider the upcoming week, all signs point to potential new peaks for these altcoins. Observers have marked this consistent altcoin growth as the arrival of the altcoin season. At the moment of writing, the altcoin market's total market cap has reached its 2023 peak of $659.5 billion. There can be numerous contributing factors to an altcoin price rally that can be based on sentiment or deep rooted in the project's fundamentals. This week's top performers in the market give insight into the forces driving their success. dYdX, the platform linked with the DYDX token, saw an increase in price following a change in fee structure. This decentralized exchange (DEX) is known for providing futures contracts on EVM blockchains, such as Ether (ETH). The launch of their layer-1 blockchain with the genesis block, occurred on Oct. 27, and employed native DYDX tokens. The successful introduction of the on-chain distribution of fees to validators and stakers improved the DYDX token price significantly, with an increase of over 110% over the past 30 days. Furthermore, there was a notable increase of 77.5% - reaching $8.67 million over 30 days - in platform user metrics, such user base, fees and revenues. This could lead to possible annual earnings of $105.5 million for validators and stakers. The SOL token of Solana has witnessed substantial growth in the last 30 days, achieving over 166% returns despite reaching a 2023 peak on Nov. 10. However, Solana's current price still stands four times lesser than its highest recorded price of $259.96. The rise in Solana's price is attributed to an influx of users, particularly because of the thriving dApp on the blockchain, Jito, a liquidity staking platform. Solana achieved a 2023 peak in daily active users on Nov. 10, hosting up to 200,000 users. Along with user growth, Solana's revenue also rose by 78.2% to exceed $1 million in the past 30 days. Avalanche, another layer 1 blockchain which operates similarly to Solana, witnessed double-digit gains in its AVAX token over the past week, despite achieving lesser revenue compared to Solana and dYdX. Within just 7 days, AVAX secured 59% gains and reached a notable 118% growth in 30 days. The current price of AVAX is still seven times lower than its all-time high. While these three altcoins have been performing remarkably, Bitcoin continues to lead the market. Over 50% market dominance has been retained by Bitcoin since Oct. 16. Generally, when Bitcoin dominance decreases, investors turn to altcoins. It is such shifts that usually mark the beginning of the altcoin season. Please note that this article does not provide investment advice or recommendations. Investments and trading include risks, and readers are suggested to conduct their own research prior to making any decisions.
Published At
11/15/2023 10:00:00 PM
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