Several altcoins have staged notable price gains over the past week, a trend reflected in the recent drop in Bitcoin’s (BTC) market dominance. The cryptocurrency that delivered the strongest returns over that period is Bitcoin Cash (BCH), soaring over 110%, while Litecoin and Solana have also seen significant returns.
Upbit, EDX Boosts BCH 7-day Gains to 113%
Over the past seven days, the prices of Solana (SOL), Litecoin (LTC), and BCH have experienced substantial gains, rising more than 13%, 17%, and 113%, respectively. Bitcoin dominance has experienced a slump during this period as a result.
This decline suggests a shifting investor sentiment and an increasing appetite for altcoins, and elevated expectations of the start of the so-called altcoin season – a period in the crypto market when the prices of alternative cryptocurrencies experience significant growth and outperform the market leader, BTC.
As one can see, Bitcoin Cash has staged a particularly impressive price rally over the past week, adding around $1.2 billion to its market cap. The price surge can be attributed to several reasons. Firstly, BCH is one of the 4 tokens listed on the EDX Markets – a newly-launched digital asset exchange backed by major institutional investors such as Charles Schwab, Citadel Securities, and Fidelity Investments.
Secondly, the cryptocurrency saw a drastic increase in trading activity on South Korea’s biggest crypto exchange, Upbit. This surge in activity was responsible for BCH’s latest 27% jump in the past 24 hours to $309.09.
Meanwhile, SOL and LTC also experienced notable returns, with the former crypto asset set to undergo a halving event in August.
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Bitcoin Dominance Retreats After Hitting a 26-Month High
In line with the growing demand for altcoins, Bitcoin dominance – a key metric that measures the market capitalization of Bitcoin relative to the overall cryptocurrency market – has been on a downward trajectory.
The slump comes after BTC dominance hit the highest level in over two years on Thursday, surging above the 52% level for the first time since April 2021. Since then, it has slightly retraced, standing at 51.78% at the time of writing.
The rise in Bitcoin dominance came amid the recent institutional adoption hopes triggered by a series of spot Bitcoin exchange-traded fund (ETF) applications by prominent US traditional finance (TradFi) firms. This trend has propelled BTC above $30,000 for the second time this year.
However, as BTC dominance reaches a certain level, it often encounters a resistance point. At this juncture, traders diversify their portfolios and explore altcoin investment opportunities.
Do you think altcoins will continue to capture investor attention in the near term? Let us know in the comments below.
The post BCH Up 113% in a Week as Traders Expect Altcoin Season appeared first on Tokenist.
