In the current bullish cycle of the cryptocurrency market, there have been no significant technological breakthroughs or hyped trends akin to DeFi or GameFi to stimulate altcoin growth. This was stated by Lennix Lai, the Chief Commercial Officer of the cryptocurrency exchange OKX, in a comment to ForkLog.
He noted that contrary to expectations, the launch of spot Bitcoin and Ethereum ETFs in 2024 did not trigger the start of an altcoin season. The price of ETH currently stands at around $2000, having fallen nearly 40% over the year. Bitcoin, despite a correction in recent weeks, is trading 30% higher than a year ago.
Lai cited investors’ focus on Bitcoin as the safest asset amid economic uncertainty as the second reason for the weak performance of alternative coins.
The expert attributed Ethereum’s weak results in the current cycle to overall market volatility and increased competition from Solana. However, he noted that the upcoming Pectra upgrade could serve as a catalyst for ETH price growth.
Lai suggested a potential return of investor interest in altcoins and recommended monitoring the Altcoin Season Index indicator.
“A value above 75 is traditionally considered a signal for the start of an altcoin season. Additionally, the news background, social media activity, and a surge in altcoin trading volumes on major exchanges play an important role,” stated the OKX executive.
Another harbinger of an altcoin season could be the rise of the ETH/BTC pair, signaling trust in altcoins through the second-largest asset by market capitalization, added Lai.
Back in March 24, Bitcoin held above $87,000 amid easing concerns about the imposition of US import tariffs.
From March 15 to 21, the net inflow of funds into cryptocurrency investment funds amounted to $644 million, ending a five-week period of outflows.