The altcoin season will start early according to this fundamental indicator
Ki Yong-ju, CEO of blockchain analytics company CryptoQuant, shared his perspective on altcoins as the potential approval of a spot Ethereum ETF for US markets looms.
In a recent publication Yong Ju highlighted a bullish signal in the indicator of “market value to realized value” (MVRV) for Ethereum .
The MVRV indicator, which helps determine whether a cryptoasset is undervalued or overvalued, compares the market capitalization of Ethereum or another cryptocurrency to the realized capitalization (the total value of all ETH at their purchase prices).
“We are entering the early phase of the altcoin season.
The MVRV of ETH is increasing faster than the MVRV of Bitcoin (BTC) , which indicates that the Ethereum market is gaining momentum relative to its fundamentals.
Given the current ETF scenario, this could be a period where ETH will [grab attention]. Historically, when Ethereum goes up, other altcoins tend to follow.”
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Crypto market in the red – Bitcoin correction continuesAddressing the broader altcoin market, CryptoQuant CEO noted a decline in meme coin dominance that hit a 15-month high in March. The dominance of meme cryptocurrencies compares the share of their total market capitalization compared to the market value of all altcoins.
"Crypto enthusiasts on Twitter seem to be moving away from speculative trading towards a focus on fundamentals, reminiscent of the situation a few years ago."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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