idea of Altcoin season is still underway. Early signs are starting to appear. These signs appear not through price movements, but through changes in on-chain behavior and trader activity.
At the center of these observations is Ethereum, a representative altcoin that has always led the previous altcoin seasons. However, other large market capitalization cryptocurrencies are seeing other interesting behavior. Any altcoin season from here on out. It may be different than before.
Ethereum usage remains strong despite price consolidation.
On-chain signals linked to altcoin season are starting to appear in several large market-cap cryptocurrencies, meaning the rotation into altcoins may not be driven by Ethereum alone this time. In other words, Ethereum It still exhibits a series of familiar characteristics. It has always been at the center of past altcoin cycles.
Related Read: Ethereum Enters Overbought Levels After Weekend Pump and Why A Crash Could Occur
For example, on-chain data shows that Ethereum is maintaining activity levels close to cycle highs even as its price continues to move sideways and fluctuate. Above and below $3,000. In previous market periods, consolidations of this nature have typically been paired with a noticeable decline in network usage as traders lose interest and speculative activity cools.
This time the withdrawal did not materialize. Active addresses and transaction activity remain high, with the latest figure being around 472,000 active addresses. In previous altcoin cycles, similar conditions emerged right before Ethereum began outperforming Bitcoin, driving a rotation into altcoins. now, History may repeat itself.
XRP, Solana, and BNB Reflect Early Altcoin Season Positioning
In addition to Ethereum, the actions of other large altcoins add context to the setup for the upcoming altcoin season. especially, On-chain data linked to XRP shows the whale No tokens are sent Exchange after recent price changes. The current lack of sustained inflows from XRP whales to cryptocurrency exchanges means larger holders are holding onto their positions, an action more in line with expectations than a profit-seeking pursuit.
Related Reading: Is Altcoin Season in Q1? Identify performance through Bitcoin and Ethereum analysis
At the same time, Solana also began to appear. Retail Participation Returns. Although trading activity is recovering, the data is still well below levels associated with the euphoria phase. Historically, this phase has occurred before momentum builds, i.e. at the end rather than when interest begins to grow.
Another piece of on-chain activity comes from BNB. In BNB, average spot order sizes have been large and consistent despite relatively uneventful price movements. BNB Price action looks boring on the surfaceHowever, average spot order sizes are similar to what they were prior to the 2021 altcoin season, which can be taken as a sign that something interesting is happening beneath the surface.
Collectively, these on-chain signals reinforce the idea that if Ethereum leads the next altcoin season, the course of events may be much more collective and different from previous altcoin seasons.
Featured image from Pixabay, chart from Tradingview.com
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