The cryptocurrency market is waiting for the possible arrival of an “altseason”, a phenomenon that has historically generated great profits in altcoins, that is, those cryptocurrencies that are not bitcoin (BTC).
However, the Colombian analyst Juan Rodríguez warns that, although this season could arrive, It will do so with considerably less impact than previous cycles.
“In theory the altseason should take place soon, but it will be with less impact than previous cycles,” says Rodríguez through his account on the social network X.
This occurs when investors and traders direct their attention and capital towards these digital assets, with the aim of obtaining higher profit margins.
If it occurs this season, it will be focused “on some niche cryptocurrencies, driven by speculation and unrealistic promises,” he indicates.
Still, Rodríguez points out that there will be opportunities to make money, although the figures will not be comparable with past times.
In the following graph you can see how historically between the altseason cycles and the last three elections in the United States, the dominance of bitcoin has been decreasing.
However, currently the dominance of BTC in the capitalization of cryptoassets, not counting stablecoins, has increased steadily in the last two years. At the time of this publication it represents close to 60%.
Reasons for the moderate altseason forecast
There are several reasons for this moderate forecast presented by the Colombian analyst.
The first of them is excess supply. There are currently more than 2 million tokens in circulation, which requires greater volumes of investment to increase their prices.
The second has to do with the wear and tear of narratives. In 2017, the fever was marked by ICOs (Initial Coin Offering), and in 2021, by decentralized finance (DeFi), non-fungible tokens (NFT) and the metaverse. None fulfilled the promises of transformation they promised.
The third reason is unequal competition. “People in pain and losing money have learned their lesson,” says the analyst. Retail investors compete with more powerful players such as venture capital funds, token creators and exchanges. They have access to privileged information and resources that give them a considerable advantage.
Rodriguez also advises investors to be cautious with “cryptobros«who often promote unreliable schemes and manipulate the market. “They speak without knowledge, they have had no results or they benefit from promoting dubious tokens,” he explains.
For those seeking stability in this volatile market, the analyst recommends focusing on bitcoin or, for those who want greater volatility, in industry-related stocks, which are regulated and have less risk of disappearing.
Although the altcoin season is not going to be widespread Yes, there are particular altcoins with quite high profits, at least so far in November.
Cryptocurrencies that have taken off in the market
In the case of ether (ETH), Ethereum’s cryptocurrency, the price currently remains slightly above $3,000, but at the beginning of the month it had a price of $2,400. This represents an increase of 25% in two weeksas seen in the following graph of TradingView.
Another example is XRP, the cryptocurrency issued by the Ripple company. Its price went from 0.5 dollars to 0.88 dollars per unit, its maximum price of the current year. This represents an increase of 60% in the mentioned period.
However, those that have taken off greatly in the market are memecoins or meme cryptocurrencies. CriptoNoticias reported that the price of the PEPE memecoin had a weekly increase of more than 100%.
The memecoin whose icon is a smiling frog reached over $10 billion in market capitalization.
Another iconic memecoin, dogecoin (DOGE), the meme cryptocurrency inspired by a viral internet dog, registered an increase of 140% so far this month. The currency went from 0.15 dollars to 0.36 dollars at the time of publication of this note, as seen in the graph TradingView.
The crypto asset performed so well that it surpassed Volkswagen, BMW and Ford in terms of market capitalization, three of the automotive companies that sell the most vehicles worldwide.
In the case of DOGE, it is currently the largest memecoin and ranks sixth among digital assets with the largest market capitalization, according to CoinMarketCap data.
One of the memecoins of the moment, Peanut the Squirrel (PNUT), has surprised with great growth, reaching an increase of 1,351% in just one week. All this less than a month after being launched
