The cryptocurrency market experienced a significant rally last week, providing a much-needed boost for a lot of short-term speculators to show profits. Bitcoin led the charge, surpassing the $64,790 mark, though the momentum appeared to have eased by the point of writing.

This surge was mirrored across the altcoin landscape, with several cryptocurrencies, including TRON, Avalanche (AVAX), and Chainlink (LINK), recording impressive gains starting from 20% to 30% inside just seven days.

Despite these gains amongst widespread altcoins, Bitcoin continues to exert dominance over your entire market.

Bitcoin Increases Dominance: What Does It Mean For Altcoins?

The altcoin season has yet to accumulate steam because the starting of the yr as Bitcoin continues to receive the lion’s share of investor attention. That is clearly reflected within the Altcoin Season Index, which currently registers a reading of twenty-two and tipping the dimensions in favor of Bitcoin. The dimensions also reads a 29 on the Altcoin Monthly Index, also in favor of Bitcoin.

Essentially, the index works by analyzing the performance of varied altcoins against Bitcoin. If 75% of the highest 50 altcoins performed higher than Bitcoin previously 90 days, it’s altcoin season. If 75% of the highest 50 altcoins performed higher than Bitcoin previously 90 days, it’s deemed an altcoin month. Interestingly, the last official altcoin season occurred throughout the 2021 bull run. 

In accordance with the chart below, the last time market dominance almost tipped in favor of altcoins was in January 2024, when it climbed above 75 for less than just a few days. Nowadays, the dimensions mostly ranges around 20 to 30, pushing the altcoin season further out of reach. In actual fact, the index even dipped as little as 12 on July 30, further highlighting the continued dominance of Bitcoin.

Supporting this Bitcoin dominance trend is the worth data from CoinMarketCap, On the time of writing, Bitcoin is trading at $63,850 with a market cap of $1.26 trillion. This represents a 6.92% increase within the last seven days. As such, 56.3% of your entire crypto market value is currently sitting in Bitcoin.

What’s The Performance Outlook For Altcoins?

Attributable to Bitcoin’s dominance, many altcoins now are inclined to mirror its performance. Nevertheless, there are periods of exceptions where some altcoins experience notable rallies independently. On the time of writing, Ethereum commands the biggest share of the altcoin market cap with $314.2 billion. Other altcoins collectively hold a market cap of $438.48 billion, while stablecoins have a market cap of $161.97 billion. 

Probably the most impressive gains currently go to Sun Token, a stablecoin swap token based on TRON, which has gained 305% in seven days. Memecoins Dogwifhat (WIF) and POPCAT have also gained 32.7% and 76%, respectively, in the identical timeframe.

Undoubtedly, altcoins will proceed to see various degrees of performance based on their individual utility and market adoption. 

Featured image from Pexels, chart from TradingView