When is the Altcoin Season coming?
The price development of crypto currencies depends on many parameters. At the beginning of the year, a large part of the community agreed which highlights will be at the top of the list in the crypto year 2020. In addition to the third BTC Halving Event, keywords such as “Libra”, “Telegram-ICO” and “ETH 2.0” were discussed. But as so often, everything turned out differently than expected and after the first two quarters, there are now even some indicators pointing to an Altcoin Season 2020. We take a look at the bearers of hope and the current market situation.
The market leader is still hardly moving at all. For example, the No.1 crypto currency is trading at USD 9137 on Sunday, which corresponds to a daily loss of 0.72 %. Granted: After the outbreak of the coronavirus pandemic, the BTC slipped below the USD 5,000 mark in a rush and worried investors feared the mega-crash. In view of this, “digital gold” is in a comfortable range just under 4 months later. However, the alternative assets are gradually scratching at the supremacy. Of course, the first mover still dominates the scene, but the dominance index is sinking little by little.
BTC Dominance Index declines to 62.2
The BTC Dominance Index is an excellent indicator to determine the balance of power between the leading crypto currency and the Altcoins. In recent weeks, the Altcoins have been able to regain important market shares. Some Coins attracted particular attention.
Cardano shot up to rank 6 on the crypto charts after the announcement of numerous updates. “Shelley” is in the starting blocks. The community is also eagerly awaiting the “ADA-Staking”. At the same time, Chainlink is putting the strongest performance of all the top 30 coins on the crypto-parquet this week. The all-time high should only be a small milestone on the way to the double-digit USD range. Contrary to many expectations, the Altcoins from the “second row” are pushing themselves into the foreground this summer. It has become quiet around the promising “Libra” project. The tedious regulatory tangle may drag on for months, if not years, and there is no end in sight.
Ethereum as door opener
For a new Altcoin Season, the alternative assets need the support of Ethereum. Indeed, Ethereum 2.0 could be a door opener for a new Altcoin Season. In addition, the DeFi market is booming, with new use cases for the intelligent contracts entering the market almost daily. In short: Dinner is served! Now it is up to Vitalik Buterin and his team. But an ETH developer is already dampening the euphoria. In a Reddit AMA, Justin Drake commented on ETH 2.0 as follows:
“The following are some of the things I want to see before Genesis:
- A public test network with 3+ customers that runs smoothly for 2-3 months
- An incentivised “attack network” that runs for 2-3 months (more details to follow soon)
- a bug bounty program similar to bounty.ethereum.org that runs for 2-3 months
- A serious differential fuzzing between clients”