What is Altcoin Season 2024 and When Does it Start?

Bitcoin and Ethereum Social Dominance vs Altcoins | Source: Santiment 

Hence, when Bitcoin and Ethereum’s percentage share of mentions and traffic begin to decline, it is a tell-tale sign that investors are now paying more attention to altcoins.

As observed in the chart above, at peak, Bitcoin and Ethereum Social Dominance attracted 25.96% and 8% of the total crypto media traffic on December 7. But since then, both have been trending downward.

This infers that media spotlight is now gradually shifting toward the rest of the altcoin market. If it persists, it could evolve into another major driver for the next altcoin season.

3. Price Surge: Altcoins, which are any cryptocurrencies other than Bitcoin, experience substantial price increases. This surge can be driven by various factors, including technological developments, partnerships, community support, and market trends.

4. Increased Trading Volumes: Trading volumes for altcoins tend to rise during altcoin seasons as more market participants buy and sell these assets. Higher trading volumes are often associated with increased market activity and volatility.

5. Diversification: Traders and investors often seek to diversify their portfolios by allocating funds to a variety of altcoins, seeking opportunities for higher returns compared to holding only Bitcoin.

It’s important to note that altcoin seasons are market phenomena and are not guaranteed to occur regularly. The cryptocurrency market is known for its volatility, and price movements can be influenced by a wide range of factors, including macroeconomic trends, regulatory developments, technological advancements, and investor sentiment.

As with any investment, investors should exercise caution and conduct thorough research before making decisions during altcoin seasons.

Frequently Asked Questions:

What are Altcoins and How Many Currently Exist?

“Altcoins” is a collective term that refers to every other actively-traded cryptocurrency outside of Bitcoin and Ethereum. The exact number of altcoins is continually changing due to new projects entering the market and others fading away.  However, the current data as of December 2023, there are 11,383 cryptocurrencies listed on Coingecko, tracked across 940 crypto exchanges.

These altcoins offer a diverse range of features, use cases, and technologies beyond those found in the Bitcoin and Ethereum ecosystems.

What is the Difference Between Altcoins and Memecoins?

The primary distinction between altcoins and memecoins lies in their underlying purpose and community-driven nature. Altcoins, short for alternative coins, encompass a broad spectrum of cryptocurrencies that serve various functions, from facilitating smart contracts to offering enhanced privacy features.

Memecoins, on the other hand, are a subset of altcoins that often gain popularity based on internet memes and community engagement rather than inherent technological advancements. As of December 2023, Dogecoin (DOGE), Shiba Inu (SHIB) and PEPE are the largest and most popular memecoins.

Where Can You Trade Altcoins?

Altcoins are traded on various cryptocurrency exchanges, both centralized and decentralized. Some popular centralized exchanges include Binance, Coinbase, and Kraken, while decentralized exchanges like Uniswap and Sushiswap offer a more anonymized and non-custodial trading experience.

Traders can choose between these platforms based on various factors such as liquidity, security, anonymity as well as the range of available altcoins and fiats currencies.

What are the Best Altcoins to Buy in 2024?

Heading into 2024, Ripple (XRP), Solana (SOL), Chainlink (LINK) are some of the best performing altcoins over the last 365 days.

However, predicting the best altcoins in the future involves extensive research and analysis. The cryptocurrency market is dynamic, and the performance of altcoins can be influenced by technological developments, partnerships, and market trends. However,

Is it Profitable to Trade Altcoins?

The profitability of trading altcoins depends on various factors, including market conditions, investor knowledge, and risk tolerance. Altcoin markets are known for their volatility, presenting opportunities for both profit and risk.

Traders should conduct thorough research, implement risk management strategies, and stay updated on market trends to enhance their chances of profitable trading.

It is recommended to stay informed about the latest news, understand the industry narratives, and fundamentals of each altcoin, and also consider consulting with financial experts before making investment decisions..

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About the Author: Daniel