Altcoin Rally Lacks Crucial Indicator for Next Market Phase
On-chain analytics company Glassnode has released a report stating that despite recent gains in the altcoin market, a large-scale capital rotation from Bitcoin to altcoins has not yet begun. According to the analysis firm, gains in altcoins continue to lag behind Bitcoin's upward performance.
The total market capitalization of altcoins has increased by 21 percent in the past month. However, this increase has not eroded Bitcoin's market dominance in the way seen at past market peaks.
Glassnode emphasizes that strong increases in altcoin prices alone do not mean the market has entered an altcoin overheating period. The company states that during past market peaks, there was a significant flow of capital into higher-risk altcoins, resulting in faster growth in their market capitalization compared to Bitcoin.