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VanEck suggests that the recent increase in the Altcoin Season Index, which rose by 53% over the last 30 days to reach 63 points, may indicate potential gains for Bitcoin (BTC).
As per the firm’s head of digital assets research, Matthew Sigel, this threshold has historically been associated with favorable returns for Bitcoin (BTC) over one-, three-, and six-month periods.
The index monitors the performance of the 50 largest cryptocurrencies by market capitalization against Bitcoin over the preceding 90 days. An “alt season” is recognized when 75% of these assets, excluding stablecoins and asset-backed cryptocurrencies, outperform BTC.
Sigel noted that Bitcoin typically experiences an average increase of 10% one month after the index exceeds 60 points. Over a three-month span, the average returns are tripled, while a six-month period often witnesses a significant average rise of 73%.
Although Bitcoin’s historical trends provide encouragement for BTC investors, the pattern also suggests benefits for altcoin holders. Sigel elaborated that Bitcoin frequently propels altcoin prices upward, establishing a feedback loop that further elevates BTC until it reaches the peak of its cycle.
According to the index, Hedera (HBAR) emerged as the top-performing altcoin among the leading 50 over the past 90 days, boasting a 450% increase. Ethena’s ENA followed in second place with 342% returns, while Stellar (XLM) surged nearly 326% during the same timeframe.
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‘Dino coins’ lead the charge
The average performance of the crypto market over the last 90 days was a 90% increase, while BTC’s price rose by 66.5% in that period.
The “store of value” category, which includes coins like Litecoin (LTC) and XRP, spearheaded the growth with average gains of 212%. These older-generation cryptocurrencies are often referred to as “dino coins.”
In second place, tokens from centralized exchanges recorded an average return of 190%, followed by memecoins with nearly 180% gains.
Native tokens associated with protocols developing real-world assets (RWA) projects saw a 171% increase during the same timeframe, while tokens related to smart contract infrastructures experienced a rise of 156.5%.
Finally, tokens from decentralized applications also performed above the market average, with prices increasing by 106%.
The post VanEck projects sustained growth for Bitcoin as altcoin season index rises appeared first on CryptoSlate.
