“Dinosaur” cryptocurrencies are coming back to life.
XRP stands out, waking up from a long nap.
The cryptocurrency market cycle could be about to reach a peak with bitcoin (BTC), the market’s leading currency, losing dominance, allowing the arrival of the altseason.
By altseason we refer to a period in which altcoins, that is, all cryptocurrencies other than bitcoin, experience an increase in their value and trade volume.
Bitcoin’s dominance, measured as its share of the total market capitalization, has fallen to 56%its lowest level in two years, triggering signals of a possible trend change.
“For market veterans, this is more than just a number: it’s a sign that it’s approaching altseason territory,” suggests the The token dispatch website.
There are three key factors lining up for what could be the biggest altseason in historypoint out the analysts of the aforementioned specialized portal.
1 – Institutional saturation of bitcoin
With the arrival of bitcoin ETFs on Wall Street in January of this year, institutions have channeled large amounts of capital into this asset.
An example is the bitcoin ETF managed by BlackRock, iShares Bitcoin Trust (IBIT), which today, December 3, surpassed the mark of half a million BTC in custody, as reported by CriptoNoticias.
This makes it the largest and most valued bitcoin ETF on the US Stock Exchange. IBIT now controls 3% of the total bitcoin supply.
Such a level of concentration has generated a feeling of saturation. While institutions focus on bitcoin, “retail traders explore new opportunities in altcoins,” specialists indicate.
2 – Regulatory clarity in the United States
A second factor is related to the regulatory clarity that is expected to arrive in the United States next year. with President-elect Donald Trump’s pro-cryptocurrency stance.
The incoming Trump administration brings with it winds of change in the regulatory landscape. The expected resignation of Gary Gensler, current chairman of the Securities and Exchange Commission (SEC) and staunch opponent of cryptocurrencies, would clear the way for a more favorable approach towards the sector.
This change has considerably reduced regulatory uncertainty, creating an environment conducive to the growth of crypto assets in general.
3 – The rebirth of “dinosaur cryptocurrencies”
The rebirth of “dinosaur cryptocurrencies,” as some projects are called due to their age, is marking the arrival of the altseason.
During this phase, altcoins consistently outperform bitcoin within three months, attracting investors’ attention to more diversified assets.
Veteran projects such as: Ripple’s XRP, Stellar (XLM), Hedera (HBAR), and Algorand (ALGO) are leading the resurgence.
XRP, in particular, has seen an increase of 406% in the last monthas seen in the graph of TradingView. The cryptocurrency went from $0.60 to $2.9, although it is still 33% from its all-time high of $3.8 achieved in 2018.
This surge allowed XRP to surpass solana (SOL) and even the stablecoin Tether (USDT), positioning itself as the third most valuable cryptocurrency with a capitalization of 144,000 million dollars, according to CoinMarketCap data.
Interest in this cryptocurrency has intensified with requests from several asset managers to launch XRP-based spot ETFs. The latest to show interest in an XRP fund was asset manager WisdomTree. They had previously applied to launch their own ETFs Canary Capital, Bitwise and 21Shares.
Ripple too seeks to enter the stablecoin market with its RLUSD proposalcurrently being approved by the New York Department of Financial Services (NYDFS).
A different altseason
“This is not the typical altseason like 2017,” explains The token dispatch analysts. In this sense, they indicate that this altseason is marked by three distinctive characteristics.
One has to do with institutional participation. ETFs have changed market dynamics, with large investors sticking to bitcoin as retail traders look for profits in altcoinsthey point out.
Secondly, the speculative movements of investors now They focus on specific sectors such as artificial intelligence (AI)a particularly popular area this season, they say.
Finally, the expectation of a friendlier approach to altcoins in the United States is raising interest in diversified assets.
What does it mean for investors?
The altcoin market is entering uncharted territory. While veteran cryptocurrencies like XRP lead the charge, new areas of innovation like AI are attracting investor interest.
With a clearer regulatory framework on the horizon and greater institutional participation, This altseason could redefine the way the cryptocurrency market is understoodsay The token dispatch analysts.
He Altcoin Season Index Blockchain Center, a key indicator, reflects this change with a value of 76 points, confirming that most altcoins are gaining ground against bitcoin.
With bitcoin’s dominance weakening and altcoins reaching new performance peaks, The coming months could mark a historic chapter in the world of cryptocurrencies.
