Changpeng “CZ” Zhao, founder of Binance, has sparked2 speculation about an upcoming altcoin rally, noting that CoinMarketCap’s Altcoin Season Index is starting to tick upward.
“Not sure how accurate it is, but it is ticking up. FOMO season soon…” CZ posted on X (formerly Twitter).
Key Highlights
- CZ points to rising Altcoin Season Index, suggesting a shift of momentum toward3 altcoins.
- Index climbs to 51, up from 16 last month, signaling a market rotation away from Bitcoin dominance.
- Ethereum, meme coins, and smaller altcoins are leading gains, reminiscent of previous altcoin cycles.
Altcoin Season Index Rises to 51
The Altcoin Season Index, which measures whether altcoins outperform Bitcoin over a 90-day period, has risen from 16 to 51 in just one month. While a reading above 75 officially signals “altcoin season,” the current trend shows increasing market rotation into non-Bitcoin assets.
Historically, Bitcoin rallies first, boosting market sentiment and liquidity, followed4 by altcoins that outperform BTC due to speculative narratives, protocol launches, and increased developer activity.
During the 2021 altcoin season, for example, top altcoins surged over 170%, compared to Bitcoin’s 2% gain over the same period.
Ethereum, Meme Coins, and Low-Cap Tokens Surge
The latest data mirrors this historical pattern:
- Ethereum (ETH): Up 110% over the past 90 days.
- Meme Coins: BONK +148.7%, FLOKI +119.1%.
- Low-Cap Altcoins: PENGU and M tokens have seen gains of 500%+ in the same timeframe.
The Altcoin Season Index excludes stablecoins and wrapped assets, focusing solely on price performance among the top 100 coins listed on CoinMarketCap.
Bitcoin Dominance Plunges
Bitcoin’s dominance—a metric tracking BTC’s share of the overall crypto market—has dropped 5.8% in one week, falling to under 61%, its lowest level since March and the steepest decline since June 2022.
The metric peaked near 66% late last month but has since slid as altcoins captured investor attention, with total crypto market capitalization rising from $3 trillion to $3.8 trillion in just three weeks.
Is Altcoin Season Here Yet?
While excitement is building, some analysts caution that altcoin season is not official yet.
“Everyone is saying ALTSEASON has started but indicators say ~ Not yet,” wrote X user Henry, noting that key metrics like Puell, MVRV Z-Score, and Mayer Multiple remain in safe zones.
Key Takeaways
- Altcoin Season Index at 51 (75 needed for officialJ altcoin season).
- Ethereum, BONK, FLOKI, and PENGU are leading the rally.
- Bitcoin dominance is falling, hinting at a shift toward altcoins.
- Market capitalization is growing fast, suggesting FOMO could be around the corner.
