Altcoin Season On The Horizon; Ethereum Bulls Speculate Rapid Gains ⋆ ZyCrypto

Crypto Ethereum

Altcoin Season On The Horizon; Ethereum Bulls Speculate Rapid Gains ⋆ ZyCrypto

The massive altcoin season, characterized by massive inflows in assets compared to Bitcoin due to bullish momentum, might be around the corner. The present sentiment leans towards Bitcoin, with the asset breaking multiple all-time highs, hitting $99K.

While users speculate a possible altcoin run, certain factors hinder gains in the short term as macro factors remain bullish for the crypto market leader. Generally, an altcoin season occurs when about 75% of the top 50 crypto assets outperform Bitcoin.

Crypto Experts Look To ETH Velocity

A new CryptoQuant market report provided insights on the start of the next altcoin season. Although the status quo remains far due to slow inflows to Ethereum, analysts have pointed to improved velocity. The circulating velocity can reflect the state of the market in conjunction with the total supply. This shows how coins move within the market and trickle to decentralized finance (DeFi) protocols.

At press time, velocity is about seven times the supply. However, the network remains a collateral asset for institutional investors. This will ignite inflows into its DeFi ecosystem, boosting lending and leverage. Improved Ethereum DeFi numbers often translate to higher velocity, which sparks altcoins. A positive run in ETH will see similar moments in top altcoins, especially on rival networks.

ETH Outflows Affect Price

Apart from the dominant Bitcoin run. The whale bought 398,889 ETH for approximately $2.2 million in 2016. After eight years of silence, the whale sought to capitalize on the slight gains recorded.

Large whale transactions often create a pattern for retail traders, leading to tougher sell pressure. Recently, ETH holders have also dumped assets or made huge transfers to centralized crypto exchanges. Unlike other custodians, this points to a potential sale because of transfer efficiency.