The idea of a Altcoin season is still active, and the first signals are starting to surface. These signs come not from price movements but from changes in on-chain behavior and trader activity.
At the center of these observations is Ethereum, the leading altcoin, which has consistently dominated previous altcoin seasons. However, other interesting behaviors are appearing in other large market cap cryptocurrencies, implying any altcoin season from here could be different from the previous ones.
Ethereum Usage Holds Even With Price Consolidation
On-chain signals linked to an altcoin season are starting to appear in several large market cap cryptocurrencies, implying that any rotation into altcoins cannot be driven solely by Ethereum this time. That said, Ethereum is still exhibiting a familiar set of traits which have always placed it at the center of past altcoin cycles.
Related Reading: Ethereum Enters Overbought Levels With Weekend Pump, Why A Crash Could Come
For example, on-chain data shows that Ethereum maintains activity levels near cycle highs even as its price continues to move sideways, fluctuating. above and below $3,000. In previous market periods, consolidations of this nature were typically accompanied by a notable drop in network usage as traders lost interest and speculative activity cooled.
This time, this decline in commitment did not materialize. Active addresses and transaction activity are still high, with recent numbers standing at around 472,000 active addresses. In previous altcoin cycles, similar conditions emerged just before Ethereum began to outperform Bitcoin and lead the rotation into altcoins. NOW, history could repeat itself.
XRP, Solana and BNB reflect Altcoin’s first season positioning
In addition to Ethereum, the behavior of other large-cap altcoins adds context to the setup of a new altcoin season. Notably, on-chain data linked to XRP shows that whales does not send tokens trading after recent price movements. The current lack of sustained inflows of XRP whales to crypto exchanges means that the largest holders are holding on to their positions, which is behavior more consistent with anticipation than profit-taking.
Related reading: Altcoin season in Q1? Breakdown of Bitcoin and Ethereum maps performance
At the same time, Solana also begins to see a return of retailer participation. Business activity is picking up, but the data is still well below the levels typically associated with euphoric phases. Historically, this stage has occurred before momentum builds, when interest begins to build, not at the end of it.
Another piece of on-chain activity comes from BNB, where the average spot order size has been large and consistent despite relatively uneventful price action. BNB Price action looks boring from the outsidebut the average spot order size is at similar levels to those seen ahead of the 2021 altcoin season, and this can be seen as a sign of something interesting brewing beneath the surface.
Taken together, these on-chain signals reinforce the idea that if Ethereum drives the next altcoin season, the course of events could be much more collective and differ from previous altcoin seasons.
Featured image from Pixabay, chart from Tradingview.com
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