Altcoin season is here as Ethereum, Polkadot, and Solana break all-time highs
- Ethereum and Ethereum-killer projects Polkadot and Solana have hit their all-time high within the past 24 hours.
- Market capitalization dominance war between Shiba-Inu-themed cryptocurrencies DOGE and SHIB kicked off the altcoin season.
- Total crypto market capitalization excluding Bitcoin is climbing steadily, signaling the onset of altcoin season.
Ethereum and projects considered Ethereum-killers are posting double-digit gains in the current bull run. The overall market capitalization of crypto has crossed $2.89 Trillion.
Ethereum, Solana and Polkadot enter price discovery as altcoin season arrives
Dog-themed-coins Dogecoin and Shiba Inu have posted double-digit gains competing amongst themselves for dominance in market capitalization. Memecoins kicked off the altcoin season. Ethereum-killer projects Polkadot and Solana prices are rallying in response to new updates in the networks.
Institutional capital inflow in Ethereum, Polkadot and Solana crossed $37.5 million last week. With rising inflows, the demand for ETH, DOT and SOL has increased consistently. Holders are awaiting the launch of Polkadot’s Parachains and Ethereum’s “Merge.” The two key events would likely push the prices of the altcoins higher.
Guy, YouTuber at Coin Bureau, commented on the altcoins’ price rally in a recent tweet:
In the past 24 hours, $ETH, $DOT & $SOL all broke through their all time highs (I hold all three).
Not quite alt season yet – but I will take it
What do you guys hold?
— Coin Bureau (guy.eth) (@coinbureau) November 3, 2021
Solana has posted over 15,000% gains in the past year, flipping XRP, Shiba Inu coin, Polkadot and Cardano in market capitalization.
Ethereum Triple Halving author Nikhil Shamapant has predicted that a market-cap-weighted portfolio of Ethereum (ETH), Solana (SOL), Luna (LUNA), Polkadot (DOT) and Cosmos (ATOM) would outperform a broader equal-weight rebalanced portfolio of layer-1 projects.
Fat protocols, so value accrues to L1s…but not all L1s.
I expect a market cap weighted portfolio of $ETH, $SOL, $LUNA, $DOT, $ATOM to far outperform a broader equal-weight rebalanced L1 index on a 10 year time horizon.
Mainly relevant for large, long term minded allocators.
— squishchaos.eth (@SquishChaos) November 3, 2021
Interestingly, the total crypto market capitalization excluding Bitcoin has climbed higher consistently.
Total crypto market capitalization excluding Bitcoin.
Historically altcoin season lasts for several weeks, with most cryptocurrencies in the top 30 hitting new all-time high and entering price discovery. A local top in BTC is considered a sign of an upcoming alt season. Bitcoin briefly entered price discovery before the onset of the alt season.
FXStreet analysts have evaluated the Ethereum price trend and noted that ETH had entered price discovery mode. ETH is heading towards a $5,500 target in the altcoin season.