Going by the crypto market metrics, the ‘altcoin season’ is just around the corner. Altcoin season is a term used to describe market moments when major cryptocurrencies apart from Bitcoin record an increased market surge.
Recall that flagship digital asset Bitcoin has been all over the moon in 2023, gaining more than 80% since the beginning of the year. Alts, however, have only recorded bits and pieces of minor gains.
But going by market trends in the past, altcoin season usually follows Bitcoin rally, so experts have suggested that Altcoin season is now on the horizon as Ethereum’s (ETH) rallied above $2,100 after the Shanghai hard fork last week.
Former CEO of BitMEX, Arthur Hayes, took to Twitter on Friday to declare the beginning of another altcoin season. “Allow me to reintroduce myself. My name is ALTSZN!!!” he tweeted.
Also, on Sunday, prominent crypto trader and analyst “Skew” highlighted some observations on markets and altcoins. He noted on Twitter that altcoins and Ethereum were leading in 24-hour volume.
The analyst further observed that Bitcoin’s dominance had started to decline. According to data, Bitcoin’s dominance has fallen almost 4% in less than a week. There are also comparisons to previous cycles. He stated there are “some similarities between 2021 bottom consolidation when BTC showed strength first before a greater market rally.”
Ethereum appears to be leading the altcoins as it did before: “If ETH is actually showing strength here, some altcoins are well undervalued.”
As the crypto market continues to show a bullish trend, keeping an eye on promising altcoins that could potentially make significant gains subsequently is a reasonable idea. However, the space is inundated with several altcoins, so trying to keep tabs and monitor ones with potential is a bit tricky.
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But we have done the job for you. In this article, we have listed three altcoins that you can tap from and enjoy the incoming altcoin season.
Ethereum
Ethereum is the second-largest cryptocurrency by market cap and is, therefore, the king of all altcoins. Ether, the native token on the Ethereum blockchain, has inherent utility beyond being a speculative asset or store of value.
An impressive feature of the Ethereum blockchain is that it is continuously being updated, and these upgrades regularly lead to a jump in token prices. Just like last week’s Shapella Upgrade led to a price spike.
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In 2022, Ethereum cofounder Vitalik Buterin indicated that Ethereum development was 55% complete. Depending on the roadmap implementation for 2023 and 2024, Ether is an altcoin poised to trend higher than it currently is in 2023.
Also, it has been said that the cryptocurrency is undervalued relative to Bitcoin, and the Merge factor is still to be discounted in the price. Therefore, it is the most important altcoin as the alt season approaches.
Polygon (MATIC)
$MATIC is the native token of the Polygon Network, which operates as a layer-2 blockchain. Polygon relies on a proof-of-stake consensus mechanism to validate transactions and secure its blockchain.
In simpler terms, a “layer-2” network consolidates transactions and processes them on the main “layer-1” blockchain, avoiding the excessive congestion that can be present on networks such as Ethereum.
Recently, Polygon introduced its zero-knowledge Ethereum Virtual Machine (zkEVM) to the blockchain space, earning its spot as the leading Ethereum scalability solution as a layer-2 project.
As the alt season approaches, Polygon’s success and market dominance are expected to impact the overall value of $MATIC positively. According to WalletInvestor, experts predict that $MATIC could rise more than 86% in 2023.
Solana
Like Ethereum, Solana supports a massive ecosystem of decentralised applications, and it has proven to be among the best projects for speed and cost.
As far as leading layer-1 networks are concerned, Solana remains a top pick, and lately, Solana’s trading volume has been surging. This spike in trading volume signals a potential rally for $SOL.
Coupled with the potential of the imminent altcoin season, long-term investors bullish on the growth of NFTs and decentralised applications would definitely scoop up some Solana at the current dip levels.
This content is for informational purposes only and should not be construed as investment, tax or legal advice. It is strongly recommended that every recipient seek appropriate independent professional advice before acting on any information contained herein, as Technext provides no endorsement, opinion or advice, including investment, tax or legal, and makes no representation or warranty about the suitability of a product for a particular reader or circumstance.
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