Altcoins Gain Momentum as Glassnode Signals Shift in Market Conditions
The cryptocurrency market is showing signs of an altcoin season, according to Glassnode's Altcoin Cycle Signal. The signal, which tracks the performance of the top 250 altcoins excluding stablecoins, has increased and currently stands at 75, indicating that market conditions have moved towards an altcoin-favouring phase.
However, this does not necessarily confirm a sustained altcoin season. Glassnode's September 15 Market Compass report noted that the Altcoin Season Index had returned to 75 during the broad rally in late August, but the rally subsequently faded. This serves as a warning that simultaneous gains across assets can occur during riskier market phases.
The broader Altcoin Indicators remain mixed. BlockchainCenter's Altcoin Season Index stood at 53 on September 22, well below the 75 threshold used to define an altcoin season. The index measures how many of the top 50 cryptocurrencies have outperformed Bitcoin over the previous 90 days.
It is essential to note that altcoins can rise in dollar terms without outperforming Bitcoin. Glassnode highlighted this dynamic in its September research, noting that altcoin market capitalization had increased, but altcoins had not yet taken meaningful market share from Bitcoin.