Bitcoin’s fall may trigger a season of altcoins on the cryptocurrency market

The relative share of bitcoin BTC $116,251.06 Bitcoin -3.18% Market capitalization $2.31 trillion VOL. 24 hours $3.55 billion in the cryptocurrency market has dropped by 2% in recent days. This has sparked lively discussions about the possible beginning of a new «alt-season» — a period when alternative cryptocurrencies (altcoins) grow faster than the flagship of the crypto market.

Amid a correction of bitcoin after historical highs, the share of altcoins in the total market capitalization began to grow, and a number of well-known tokens, including Ethereum ETH $2,993.42 Bridged Ether (StarkGate) -0.31% Market capitalization $83.47 million VOL. 24 hours $2.19 billion , Solana SOL $158.62 Binance-Peg SOL -3.26% Market capitalization $0.17 billion VOL. 24 hours $0.54 billion , and Toncoin TON $1.24 Tokamak Network -0.96% Market capitalization $65.51 million VOL. 24 hours $25.34 million , showed double-digit growth.

Analysts note that similar trends have already been observed in previous years: the decline in bitcoin’s dominance has often signaled the start of periods of active growth in altcoins. Cryptocurrencies in the DeFi and meme token sectors have become particularly active, and trading volumes in some altcoins have approached record highs.

However, experts urge investors to be cautious: high interest in altcoins is usually accompanied by increased volatility, and rapid growth can quickly be followed by a sharp correction. The distribution of funds between bitcoin and altcoins remains the main indicator of market sentiment.

Experts believe that the further development of the altcoin season will depend on the behavior of bitcoin, the overall market situation, and the sentiment of institutional investors. If bitcoin’s share continues to decline, we can expect a new wave of interest in promising altcoins and projects with real-world applications in the crypto sphere.