- The altcoin season index of 35 suggests that many tokens are not out of recession.
- ETH network growth and volume decline could hinder the rally.
If there's one phrase that's been trending in the market for months with little to show for it, it's “altcoin season.”
For the expected period to materialize, Ethereum [ETH] and other non-Bitcoin [BTC] Cryptocurrency needs to outperform BTC.
But that's not happening. In fact, AMBCrypto's analysis of Blockchaincenter.net reveals that that time is not even close. According to the platform, the altcoin season index was 35.
Alts cannot maintain preview
To confirm the season of an altcoin, the reading must be 75. Interestingly, the index reached this height in his last week of January and his first week of March. But it melted away within a few days.
Source: Blockchainseter.net
Overview of tokens such as ETH, Cardano, etc. [ADA]ripple [XRP] It shows that the price has decreased in the last 90 days. There will be no altcoin season unless 75% of the top 50 cryptocurrencies outperform BTC.
Considering the press time situation, it can be assumed that the timing was not close. Apart from the index, one of the determining factors is ETH.
In 2021, the soaring price of Ethereum was one of the first factors that caused the price increases experienced by many altcoins.
Notably, fewer than 20 of the top 50 altcoins outperformed Bitcoin in the past 90 days.
But ETH was not part of it. Furthermore, cryptocurrencies have not been able to move like the previous bull market.
ETH crushes hopes
However, the situation could change if demand for ETH spikes, causing the token's price to rise and test all-time highs. For this to happen, many new addresses will need to enter the Ethereum network.
To track this, AMBCrypto looked at the growth of the network. As of this writing, Ethereum's network growth is 3,131, suggesting that adoption of this cryptocurrency has not been all that impressive.
Source: Santiment
If this indicator continues to fall, the price of ETH may find it difficult to rise north. In this case, the altcoin season may still be postponed.
On the other hand, rapid growth in the network could cause a rally in cryptocurrencies and other top tokens. Meanwhile, when the amount was evaluated, it turned out to be $10.31 billion.
read ethereum [ETH] Price prediction for 2024-2025
When ETH first started rising to all-time highs, its trading volume was over $40 billion. An increase in volume indicates interest in the cryptocurrency. Consistency can lead to higher prices.
Source: Santiment
Due to low volume, the price of the altcoin may be unlikely to rise noticeably in the coming weeks. Additionally, altcoins may need to look away from waiting for ETH before heading into a multi-month rally.
