- Ethereum’s recent 10% surge signals the onset of an altcoin season, reaching $3,374, yet 30% below peak.
- Analyst Mac.D highlights increased Ethereum transactions and circulating velocity as key indicators of the altcoin rally.
Ethereum (ETH), currently priced at $3,374, has seen a 10% increase in the last 24 hours, marking a significant move in the cryptocurrency market.
Although this price is about 30% below its highest record of $4,878 from 2021, the current uptrend could be an indicator of the beginning of an altcoin season. This suggestion is based on an analysis by CryptoQuant, which points to key metrics such as Ethereum’s circulating velocity and transaction volume.
Circulating velocity is a metric used to gauge the rate at which coins are traded; it compares the volume of annual transactions to the total supply.
Despite Ethereum’s velocity being relatively low at seven times the total supply, its critical role in providing collateral for institutional investments might boost its market activity and, by extension, its price.
Ethereum’s influence stretches beyond simple market metrics. It underpins many decentralized finance (DeFi) applications, making it a foundational asset in the crypto ecosystem. This positions Ethereum as a significant player capable of influencing liquidity across the broader altcoin market.
Its competition includes newer blockchain networks like Solana and Tron, which offer faster and cheaper transactions but have yet to match Ethereum’s extensive application infrastructure.
The potential altcoin season is also reflected in the performance of Chainlink (LINK), another significant cryptocurrency, which has increased by 16.6% over the past week to a price of $15.26.
This rise correlates with an increase in Chainlink’s active addresses, which have grown from fewer than 2,000 in October to over 5,000 by November 21st, indicating a surge in retail interest.
Additionally, Chainlink’s open interest—a measure of market participation in derivatives like futures and options—has also seen a notable increase.
It grew by 7.76% to $294.88 million, with a corresponding rise in open interest volume to $726.97 million, demonstrating growing investor confidence and market engagement.
