Ethereum performed significantly better than Bitcoin in 2021. According to one analyst, this is a major sign of entering a bigger altcoin season.
2021 has been an exciting year in the cryptocurrency market so far. For the first time in history, the total market value of cryptocurrencies has exceeded $ 1 trillion.
And while many have to do with the rising price of Bitcoin, it is becoming evident in the past few days that altcoins have been demanding their share, causing many to believe that we are in a market situation known as the “altcoin season.”
2021 altcoin season: just getting started
“Altcoin season” is a term used to describe a market condition in which the price of Bitcoin outperforms altcoins. This is directly reflected in the BTC dominance index and measures Bitcoin’s share of the value of the entire cryptocurrency market.
A trader known as Secrets of Crypto on Twitter states that the market is currently in Phase 2 of an altcoin season.
We are currently in Phase 2 of the Roadmap to Altseason. Ethereum has been outperforming Bitcoin for a month now and is starting to become parabolic …
The “Path to Altcoin season” is a chart that describes the different stages of this market condition. Stage 1 is when there is a flow of money to Bitcoin and possibly Ethereum. The important point to note here is that at this stage, ETH has difficulty keeping up with Bitcoin and goes back and forth.
The second phase (where we are now, according to the analyst) is when Ethereum starts to perform better than BTC.
Indeed, Ethereum has outperformed bitcoin impressively this year. ETH has increased 87% since the beginning of the year, while BTC has only increased by 15%.
Another thing about the current Phase 2 of the “Road to Altcoin season” is that money is starting to flow into other large volumes of altcoins. We also saw this. While Chainlink’s LINK sees an all-time high, Polkadot’s DOT performs impressively.
First of all, this post is by no means investment advice and it is important to note that history is not an indicator for future events.
However, according to the analyst’s photo, it will be seen that the big altcoins become parabolic in the next stage. Moreover, other altcoins with strong fundamentals should see significant gains as well. In the final phase of the altcoin season, “we expect the high value altcoins to become completely vertical and explode.”