Bitcoin Remains Dominant Despite Altcoin Surges

Last week, the cryptocurrency market saw a notable rally, bringing significant profits for short-term traders.

Bitcoin led the charge, surpassing $64,790, though its momentum seemed to wane by the end of the week.

This positive trend extended to altcoins, with several seeing substantial gains of 20% to 30% in just one week.

Despite these gains in altcoins, Bitcoin remains the dominant force in the market. The Altcoin Season Index, which measures altcoin performance relative to Bitcoin, is currently at 22, indicating Bitcoin’s continued dominance. Similarly, the Altcoin Monthly Index stands at 29, also favoring Bitcoin.

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The index assesses whether 75% of the top 50 altcoins have outperformed Bitcoin over the past 90 days to determine altcoin season. The last official altcoin season was during the 2021 bull market. The index nearly tipped in favor of altcoins in January 2024 but has since hovered between 20 and 30, with a low of 12 in late July, reflecting Bitcoin’s ongoing dominance.

Currently, Bitcoin is trading at $63,850 with a market capitalization of $1.26 trillion, representing a 6.92% increase over the past week. Bitcoin now constitutes 56.3% of the total cryptocurrency market value.

Due to Bitcoin’s dominance, many altcoins often mirror its performance, though some can experience independent surges. Ethereum currently holds the largest share of the altcoin market cap at $314.2 billion, with other altcoins collectively valued at $438.48 billion and stablecoins at $161.97 billion.

Among the notable performers, Sun Token, a stablecoin swap token on the TRON network, has surged 305% in the past week. Memecoins Dogwifhat (WIF) and POPCAT have also posted significant gains of 32.7% and 76%, respectively.

Alexander Stefanov