Simply put
- Ethereum Classic, Litecoin, and Bitcoin Cash saw an increase in value on Friday following record highs for XRP and Bitcoin.
- Akshat Vaidya, CIO of the venture capital firm Maelstrom, mentioned that these increases might signal the onset of a broader altcoin season.
- However, he cautioned that investors might need to be patient until the “true altcoin season” kicks in for new tokens to yield profits.
After waiting seven long years, traditional cryptocurrencies have surged in value, particularly as XRP hits a new record. One analyst highlighted that this could be an early indication of an altcoin season, especially after Bitcoin’s recent highs, with newer altcoins likely to follow suit.
Notable old-school altcoins such as Ethereum Classic, Litecoin, and Bitcoin Cash have experienced significant gains. Meanwhile, other cryptocurrencies like Uniswap, Dogecoin, and Hedera also saw price increases.
“We observe initial signs of an altcoin season, but it’s not in full swing just yet,” noted Vaidya. He pointed out that Bitcoin’s dominance is starting to take shape but still remains above 60%. The momentum building for altcoins like Ethereum suggests a possibility of history repeating itself from Bitcoin’s earlier prosperous periods.
Ethereum Classic, leading the charge, is still up over 85% from its peak in 2021.
This cryptocurrency was born in 2016 after a significant hack of the DAO, an Ethereum venture capital fund, led to a controversial hard fork. While some supported the reversal of the hack, others argued against it, giving rise to what is now recognized as Ethereum Classic.
Litecoin also climbed to a four-month high of around $110 before settling back slightly to about $108.73. Created in 2011 by Charlie Lee, a former Google engineer, Litecoin aimed to improve upon Bitcoin’s design, offering faster transaction times.
Bitcoin Cash, the 19th largest cryptocurrency, rose by 6.4% that day but remains 86% below its record high from 2017. This cryptocurrency emerged in 2017 following disagreements within the Bitcoin community regarding block size changes.
Interestingly, Bitcoin Cash has undergone further hard forks, resulting in Bitcoin SV and Bitcoin Cash ABC, both of which now have lower market capitalizations compared to Bitcoin Cash.
“It’s evident that older coins with established liquidity and investor trust are the first to attract capital. We’ll have to wait for the true altcoin season for the newer projects to rise,” Vaidya remarked.
The recent surge in an old altcoin even reached a new high of $3.65 after a prolonged seven-year wait, partly due to XRP’s growth. Many attribute this price increase to the ongoing legal uncertainty surrounding the project with the SEC, despite no official resolution yet.
Other altcoins like Uniswap, Dogecoin, and Hedera have also seen notable gains, with daily increases of 17.5%, 11.3%, and 7.6%, respectively.
Last Thursday, the U.S. House passed the Genius Act, a significant bill aimed at creating a framework for issuing stablecoins, signaling a step forward in regulatory efforts under the current administration.
“The favorable policies from the U.S. government and timely institutional support are drawing attention to the crypto market,” stated Sean Dawson, head of research at Derive.
