- ETH/BTC recovered higher as analysts predicted an alt season is possible.
- However, altcoin markets may not rise uniformly, with varying performance.
Altcoin Season phone call It has increased a lot recently, Ethereum (ETH) Demand for ETFs has intensified. The rise of ETH, the altcoin market leader, represents a barometer of altcoin season according to most analysts.
According to anonymous cryptocurrency analyst Crypto Nova, the ETH/BTC ratio is To explode And altcoins will rally.
“When ETH/BTC always goes up, so does the entire altcoin market. And it looks like it will happen soon.’
Another analyst, Michael van de Poppe, said: echoed According to Nova’s predictions,
‘As long as #Ethereum remains above 0.05 BTC, a new trend has begun. It’s a rise.’
Source: X/de Poppe
For those unfamiliar, ETH/BTC tracks ETH performance against BTC. As of press time, the ETH/BTC ratio is 0.055, meaning 1 ETH is worth approximately 0.055 BTC.
A surge in the ratio value would suggest a positive performance for ETH and perhaps an altcoin season. However, the decline in value means ETH is underperforming compared to BTC.
ETH/BTC ratio surged due to ETH ETF speculation. Once the spot ETH ETF is launched and begins trading, its value could increase, boosting the rest of the altcoin market.
Altseason hasn’t started yet.
However, another key alternative season indicator: Altcoin Season IndexThe number is 37, indicating that the season has not started yet. Specifically, the Altcoin Season Index signals an alt season when 75% of altcoins outperform BTC over the past 90 days.
However, it is worth noting that while some altcoins have recorded exemplary results during bull markets, others have struggled.
Meme coins have been an unusual coin, with Pepe (PEPE) consistently hitting record highs recently. Year-to-date, PEPE is up +950% over the same period, while dogwifhat (WIF) is up +120%.
However, other altcoins lagged behind the rest due to the poor performance of Ethereum L2. According to a recent report from Deribit: Commentary,
“OP, MATIC, and ARB decreased by 33%, 26%, and 24%, respectively. This means that 1ETH invested in OP at the beginning of the year is now worth only 0.4ETH. This underperformance is not only due to the ETH ETF, but also the broader altcoin underperformance.
The Deribit report noted that an oversupply of unlocked tokens could be one of the reasons for L2’s poor performance.
”$82m OP Unlock hits the market. There was about the same amount of ARB the week before.
Performance varied across alternative L1s, with some L1s performing well (TON +197%, NEAR +97%), while others, such as APT and AVAX, performed poorly.
Therefore, a potential surge in the ETH/BTC ratio may not necessarily cause all altcoins to rise. May be optional.