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Why Bitcoin’s dominance may not stop altcoins’ historical pattern

3min Read

Trader and founder of MN Trading Michaël van de Poppe mentioned that this cycle, being the longest bear market ever, may have pushed the altcoin season forward. But will it last?

Altcoin news around Bitcoin

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  • The anticipated altcoin season could still happen before Bitcoin’s next halving.
  • Altcoins like INJ, LINK, and SOL are showing signs of strength and readiness for a rally.

For most of the second half (H2) of 2023, there was speculation that an altcoin season was nearby. But to the disappointment of the eagerly anticipated, altcoins could not fulfill the expectation. 


How much are 1,10,100 BTCs worth today?


For context, an altcoin season describes a period where cryptocurrencies outperform Bitcoin [BTC].

Patience is the name of the game

However, trader and founder of MN Trading Michaël van de Poppe opined that the possibility should not be written off. He believed that Bitcoin’s rising dominance may have halted the initial altcoin sentiment.

The analyst also mentioned that this cycle, being the longest bear market ever, may have also pushed the altcoin season forward.

Previously, AMBCrypto had reported that the rise of the Bitcoin market dominance has pegged back the strength of Ethereum [ETH], Ripple [XRP], and Binance Coin [BNB].

Despite the weakness shown by these cryptocurrencies, van de Poppe noted that the historical altcoin season would happen before the 2024 Bitcoin halving.

Furthermore, the analyst defended his point by making an example of tokens that were performing well.

According to van de Poppe, the strength shown by the likes of Solana [SOL], Injective [INJ], and Chainlink [LINK] is proof that the current cycle would not be different from the former ones.

At the time of writing, INJ had a 10% increase in the last 30 days. LINK’s performance within the same period was also an 8.76% hike, while SOL had more with 18.42%.

Chainlink, Injective, and Solana price action

Source: Santiment

The market may be prepared for altcoins 

But price action is not the only metric that could impact potential performance. Other metrics relating to network activity can also help in projecting how far a cryptocurrency’s value can go.

To start with, Injective’s 30-day active addresses jumped 2x between 15 October and the time of writing.

Active addresses show the level of interaction around a project. Thus, the hike in the metric suggests that there was a high level of speculation (possible accumulation) around INJ.

In a case where the interaction maintains the status quo, INJ’s price may not be far away from a substantial increase. 

Another metric to consider in this regard is token circulation. But this time, the focus is on Chainlink.

At press time, LINK’s Circulation (30d) metric was down to 52.12 million, meaning a lot of the tokens had not been used and have remained dormant within the aforementioned timeframe.

Chainlink circulation and injective active addresses

Source: Santiment


Realistic or not, here’s LINK’s market cap in ETH terms


Typically, an increase in circulation would have suggested a high selling pressure.  But the circulation decreased, and LINK may continue to hold tightly to $7.

Additionally, van de Poppe concluded that Ethereum’s press time weakness was a sign of its last correction against Bitcoin. Due to this, altcoins may be close to their bottom and could be gearing for a leg up.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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