Cryptocurrency exchange Binance’s altcoin volume dominance has reached 78%, a level that cryptocurrency analysts say points to strong potential for an altcoin bull market in 2025.
“With rising retail interest, the altcoin market could continue to build strong momentum over the coming months,” CryptoQuant contributor Burakkesmeci said in a January 11 market report.
Analyst says there is ‘confidence’ in altcoin bull market in 2025.
Burakkesmeci said that Binance’s trading volume per altcoin pair reached 77.83% in January 2025 and has increased by about 11% over the past five months.
“The steady increase in altcoin trading volume on Binance strengthens our confidence in the potential for an altcoin bull market in 2025,” Burakkesmeci said.
Trading volume of major assets on cryptocurrency exchange Binance charts. source: Burakesmatch/CryptoQuant
Burakkesmeci said it is “clear” that interest in altcoins has steadily increased since May 2024, when Binance’s altcoin dominance reached 50.80%.
However, CoinMarketCap’s Altcoin Season Index, which uses the top 100 cryptocurrencies by market capitalization and compares them based on 90-day price performance, leans more toward “Bitcoin season” with a score of 46 out of 100.
The Altcoin Seasonal Index fell 18 points from 64 on December 9. score: CoinMarketCap
Traders typically watch Bitcoin (BTC) dominance, an indicator that reflects Bitcoin’s share of the overall cryptocurrency market capitalization, decline as a sign that altcoin season may be underway. Bitcoin dominance at the time of publication was 57.74%, up 2.41% over the past 30 days, according to TradingView data.
Traders are looking upward at Ethereum.
Meanwhile, anonymous cryptocurrency trader Mister Crypto said in an X post on January 11 that Ether (ETH) could be “pumped from $4,000 to $8,000” in the coming weeks.
Traders are also seeing the surge in Ethereum’s price as a sign that the broader altcoin market could follow suit with greater upside.
At the time of publication, Ethereum (Ether) is trading at $3,279, down 15.77% over the past 30 days.
relevant: XRP price is preparing for a ‘strong move’ above $2.90 as sentiment indicators send bullish signals.
Hunter Horsley, CEO of Bitwise Invest, said in an
Meanwhile, other analysts say this altcoin season may unfold differently than previous cycles.
“Only a few altcoin projects with strong use cases and narratives will survive,” said Joo Ki-young, a market analyst and CEO of CryptoQuant, comparing the current altcoin market cap to that of Bitcoin, which has doubled since 2021. .
Ju previously warned that this market cycle would deviate from previous cycles and said alt seasons are no longer triggered by investors converting their capital gains from Bitcoin into altcoins.
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