Binance Altcoin Dominance Reaches 78%, Analysts Eye Solid ‘Bull Run’ in 2025

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This significant change, as observed by experts, indicates a progression in interest moving from Bitcoin (BTC) to other cryptocurrencies, or altcoins, showing remarkable expansion during recent months.

As reported by Burakkesmeci, a writer for CryptoQuant, the trading volume of altcoins on Binance has increased by approximately 11% since May 2024, amounting to 50.8%. This increase in retail involvement with altcoins could signal the start of an upward trend, potentially leading to a bull market in 2025, according to his analysis. With Binance being the largest cryptocurrency exchange by trading volume, there has been a surge in altcoin pair trading, making up more than 77% of its total volume as of January 2025.

A Shift Toward Altcoins

The growing influence of altcoin trading on Binance signifies broader shifts happening in the cryptocurrency market. More investors are expanding their investment portfolios, looking for chances outside Bitcoin and Ethereum (ETH). Although Bitcoin’s price fluctuations continue to be closely monitored, altcoins have emerged as a more appealing sector, capturing the attention of both individual traders and institutional investors due to its increasing popularity.

Burakkesmeci pointed out that the continuous growth in trading volume of altcoins indicates a growing confidence in these digital currencies, potentially signaling increased growth in 2025. As more and more retail investors get involved, he suggests that altcoins may continue to gain traction. This perspective is echoed by many market players who anticipate the altcoin market could be poised for expansion as the surge of interest in new digital assets turns into capitalization.

Ethereum’s Role in the Potential Bull Market

In recent times, Ethereum, currently ranked second by market value among cryptocurrencies, has been spearheading this digital currency trend. Investors are closely watching Ethereum’s price fluctuations, and some experts predict a substantial increase in its value. As Mister Crypto, a well-known crypto trader, stated, “Should Ethereum surpass its resistance levels, we might witness it soaring from $4,000 to as high as $8,000.” This bullish forecast could potentially ignite a broader surge in the values of other altcoins since Ethereum often sets the pace for price movements within this market.

The cost of Ethereum hovers around $3,279, representing a decrease of about 16% over the past month. Yet, its potential for substantial growth remains a key factor fueling enthusiasm within the altcoin sector. As Ethereum nears critical resistance points, analysts anticipate that a price surge could trigger a broader bull market among altcoins.

Bitcoin Dominance and Altcoin Season

As an analyst, I’ve observed that despite a rising tide of altcoins, the CoinMarketCap Altcoin Season Index is tilting slightly towards Bitcoin. The current index score of 46 suggests we are inching closer to a “Bitcoin Season,” a period where Bitcoin commands significant market focus. Interestingly, Bitcoin’s dominance in the broader cryptocurrency market has grown by 2.4% over the past month, now standing at 57.74%.

In other words, numerous experts suggest that when Bitcoin’s influence lessens, it could be a signal that the time for alternative digital currencies, or altcoins, has come. As money moves into these altcoins, Bitcoin’s dominance tends to decrease, reflecting this transition.

A New Era for Altcoins: What to Expect in 2025

While the increasing influence of alternative coins on Binance suggests a potentially exciting future, some experts predict that the upcoming altcoin season could deviate significantly from previous ones. Ki Young Ju, CEO of CryptoQuant, asserts that only a select group of altcoins with robust use cases and compelling narratives are likely to hold sway. He explains that the movement of capital from Bitcoin into alternative coins may not be the primary factor driving the market this time, suggesting a shift in dynamics compared to past cycles.

According to Bitwise Invest’s CEO, Hunter Horsley, there seems to be an increasing excitement about cryptocurrencies as we move towards the next year: “2025 could mark a significant leap forward for Bitcoin and the entire crypto industry,” Horsley stated, expressing his optimism about the upcoming months.

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2025-01-14 09:56