According to Cointelegraph: As Bitcoin reclaims the $37,000 mark, altcoin assets are also experiencing significant gains according to the latest market data. Reports highlight top-performing altcoins this month, primarily Solana (SOL), Avalanche (AVAX), and dYdX, which noted substantial double-digit returns and appear poised to achieve new year-to-date highs.
Bitcoin's price hike, paired with the altcoins' bullish performance, has prompted various analysts to announce the onset of an 'altcoin season.' The total market capitalization of the entire altcoin space has recorded a 2023 high, standing at $659.5 billion at the time of writing.
The reasons behind these price surges can be a combination of market sentiment and the fundamental features of the associated projects. Delving deeper into this week's top-performing assets reveals the various catalysts energizing their growth.
For dYdX, a decentralized exchange offering futures contracts on Ethereum Virtual Machine blockchain tokens, a significant price boost followed the launch of its own layer-1 blockchain, leading to the accumulation of all fees to validators and stakers. This protocol adjustment has been fruitful for DYDX's price, showing a 110% increase throughout the last month.
Solana's SOL token has exhibited a remarkable 30-day return profile, with gains surpassing 166%. Despite reaching a 2023 peak on Nov. 10, the actual price of Solana is still 4x below its record high. The growth in Solana's price seems to be driven by an increase in its user base, primarily due to the popularity of Jito, a decentralized application operating on its blockchain.
While Avalanche's AVAX hasn't yielded as much revenue as Solana or dYdX, its performance has not lagged. The token recorded more than 59% gains within the last week, with a 118% growth over 30 days.
In the meantime, despite the impressive performance from these altcoins, Bitcoin market dominance remains high, staying above 50% since Oct. 16. The trend typically sees the dominance of Bitcoin decreasing as investor funds flow into altcoins, signaling the start of an 'altseason.'
