Alt season is a shortened form of the term ‘altcoin season.’ It is a type of cryptocurrency market cycle where the price of altcoins increases relatively quickly. This price movement can occur with or without the influence of Bitcoin’s dollar value. During this market cycle, the price performance of altcoins also usually exceeds that of Bitcoin.
- What is alt season crypto
- Chainlink (LINK)
- What is alt season
- What is alt season reddit
- What does the Altcoin season mean?
- What is alt season cryptocurrency
- Whats alt season
- Previous Alt Seasons
- December 2017 – January 2018
- December 2020 – April 2021
- What does alt season mean in crypto
- What Is the Bitcoin Dominance Ratio?
- What causes alt season
- If In Doubt, Compare to Bitcoin
- What is alt season well what about alt season alt
- Altcoin Exchanges and More Information
- What is alt seasons
- Is it altseason right now?
- How to make money in altcoin season
- What is alt seasonal
- How to know altseason is coming
Generally, the price of altcoins tends to be stagnant or very slow-moving. However, once in a while, the value of all altcoins will increase quickly in a short period of time.
The duration of this market cycle varies, lasting anywhere from a few days to several months. As a result of this uncertainty, many investors try to maximize their profits during this time. The rate and intensity of the price increase during alt season also varies significantly.
What is alt season crypto
Monero is definitely one of the best altcoins for 2021 for those who love privacy.
Developed in 2017, Chainlink is a decentralized network that connects smart contracts with real world data. Furthermore, the Chainlink decentralized oracle network is operated by node operators. In addition, operators that maintain nodes are paid LINK cryptocurrency.
The nodes connect the system like links in a chain. Chainlink runs on the Ethereum network and plays a critical role in execution of smart contracts.
What is alt season
Bitcoin Dominance can be explained simply this way:
“Let’s imagine that the total market cap of all cryptocurrencies currently stands at $100 billion. If Bitcoin’s market cap represented $60 billion of this, Bitcoin’s dominance would stand at 60%.” – CoinMarketCap
As you can see in the chart below, Bitcoin dominance has decreased from around 70% in January 2021 to approximately 60% in February 2021. This is one of the telltale signs that altcoin season has started.
As Bitcoin dominance grows, we know that most of the money coming into crypto is being used to purchase Bitcoin.
However, during the altcoin season, something different happens. For example, Bitcoin dominance shrinks and investment money moves from Bitcoin into the altcoin.
What is alt season reddit
‘Alt season’ is one of those slangs that new crypto investors will come across. If you’re going to diversify your portfolio and invest beyond Bitcoin, then you need a clear understanding of what alt-season is and how you can position yourself for the profit-making often associated with it.
If that sounds like something you’re really interested in, then let’s dive right in!
What does the Altcoin season mean?
Altcoin season (alt season for short) is a time in the crypto market where alternative coins tend to outperform the leading cryptocurrency, Bitcoin. Alternative coins, or altcoins, is a term generally used to refer to any cryptocurrency that isn’t Bitcoin.
So, any period in the market where most altcoins yield more profit than Bitcoin is referred to as alt-season.
What is alt season cryptocurrency
Mooning prices, spam bots plaguing Twitter posts, and exchanges being backlogged with new registrants are all signs that a bull market is about to come to an end.
Indeed, the last time we saw this combination of factors was the peak of the 2017 bull run, but we tend to forget that a huge alt season occurred in 2016 and early 2017 before Bitcoin began making headlines on the road to $20,000.
The following chart, courtesy of Twitter user @damskotrades, illustrates how far into the alt coin cycle we actually are:
We can see the correlation with the previous bull run, which puts us at late 2016-early 2017. This was a time when older coins such as XRP, Ethereum, and Litecoin went on lung-busting runs following a lengthy accumulation process, resulting in similar emotions to what we are seeing now.
Whats alt season
Previous Alt Seasons
December 2017 – January 2018
Near the peak of Bitcoin’s epic run in 2017, many new coins launched, thanks to Ethereum’s smart contract functionalities.
Investors hot off the heels of massive gains from Bitcoin, while others, fearing they missed out, jumped into the altcoin market. Many alts hit new all-time highs that they’d never come close to revisiting until 2021 (off the back of Bitcoin completing a 100% recovery to its previous all-time high).
At the peak of the early 2018 alt-season, Bitcoin’s dominance dropped as low as 37.84%.
December 2020 – April 2021
Perhaps the longest alt-season to date is the one we’re currently witnessing.
What does alt season mean in crypto
This period is also usually marked by the Bitcoin dominance ratio dropping lower than it was before the start of the season.
What Is the Bitcoin Dominance Ratio?
This simply refers to the size of Bitcoin’s market cap, in relation to all other cryptocurrencies (altcoins.)
For instance, if the entire crypto market cap is £1 trillion, and Bitcoin’s market cap is £600 billion, then the Bitcoin dominance will be at 60%, while altcoins will stand at 40%. In a typical altcoin season, altcoins bite into Bitcoin’s share of the entire crypto market cap.
The chart below shows how Bitcoin’s dominance has trended since 2013 (Bitcoin is displayed in orange). Kindly note that the period in mid-2017 and early 2018 when Bitcoin’s dominance fell as low as 34-37%, altcoins contributing a larger share of the industry’s market cap then.
What causes alt season
It follows nearly the same pattern as the 2018’s, with many new coins launching and hitting record highs in a matter of weeks and months.
From a new 70% dominance, Bitcoin’s dominance levels now rests below 50% and could dip even further if the season continues
The above examples are the most extended altseason periods. However, there have also been “mini-altseasons” including in May 2018 and April 2019.
The concept of “alt season” is one that will likely continue as the crypto market matures. There will be periods when alts outperform bitcoin and a time when the leading cryptocurrency roars back to reclaim an outsized share of the market.
Over time, though, one might expect Bitcoin’s dominance to wane, at least to an extent.
Some will have inevitably sold on those pumps, thinking that alt season was over, when the data shows that it was only just beginning.
If In Doubt, Compare to Bitcoin
Of course we don’t know for sure that the next cycle will play out as in the image above, and when you see alts making all time highs and going on parabolic runs it’s tempting to think that the time to leave the markets is nigh. One example is Telcoin (TEL):
TEL has clearly been on a tear in 2021, ripping over 2,800% in six weeks. This might be enough for some holders to think that the pump is over.
However, looking at this move on the Bitcoin chart we see a very different situation:
The near 3,000% move barely registers on the Bitcoin chart, showing just how much catching up TEL has to do.
What is alt season well what about alt season alt
Again, these are high risk, and you can easily lose money here. Buyer beware.
Altcoin Exchanges and More Information
Hopefully this article has helped you better understand the ongoing altcoin season 2021. When making investing decisions it is important to do your own research and determine for yourself what is a good investment.
In addition, there are many exchanges that can be used to purchase cryptocurrency.
Binance, Gemini, Kraken, Kucoin, Coinbase and so many more. Please do your research if you decide to invest. There are many scams in the crypto industry that are searching for an easy mark. If you want to learn more about Bitcoin and cryptocurrency, there are more articles by Piggy Bank Coins below.
What is alt seasons
Is it altseason right now?
It appears to be altseason at the time of writing this article with Bitcoin’s dominance dropping from 69.1% in late December 2020 to 49% in April 2021.
Within the said period, many altcoins including Ether (ETH), Binance Coin (BNB), Cardano (ADA), Solana (SOL), Uniswap (UNI), Compound (COMP) have all yielded over ten to twenty-fold gains for investors. Dogecoin (DOGE) jumped over 6000% percent and many altcoins mimicking the meme-cryptocurrency have also seen similar yields.
These abundant yields also suggest that the season has lasted a long while, with no one able to tell when a market reversal will take place.
How to make money in altcoin season
There is a saying that “proper preparation promotes proper performance.” Hence, the best way to make money in altcoin season is to prepare before it arrives.
What is alt seasonal
Also, any rapid decline in Bitcoin’s price takes a toll on the market with alts shedding more gains.
How to know altseason is coming
There is no perfect indicator of an incoming alt-season. However, Blockchain Center provides a tool for gauging market sentiment and determining whether the market is in Bitcoin or alt-season.
The tool defines an altcoin season as a three-month period where 75% of the top 50 coins perform better than Bitcoin.
Industry observers also believe that the following signs theoretically confirm that an alt-season is around the corner:
- New Trends: As noted earlier, the emergence of trends that require the creation of many coins can cause bitcoin’s dominance to shrink and many of the newly launched altcoins to grow in value.