Altcoins like Ripple (XRP), Binance coin (BNB), and Tron (TRX) are stealing the spotlight as the premier coin continues to falter at $100K.
The current crypto market unmistakably signals the arrival of the ‘Altcoin season.’ The shift began following Donald Trump’s decisive victory in the U.S. presidential election, which coincided with a surge in DOGE and Bitcoin to multi-year highs, potentially driven by DOGE’s association with Elon Musk. Since then, Bitcoin has entered a consolidation phase, and DOGE’s momentum has cooled.
In contrast, a wave of altcoins has emerged, spearheaded by XRP. The move in XRP was of such a massive magnitude that it flipped a $100 billion market capitalization late last Saturday. It skyrocketed over 420% within a month, reaching a seven-year high and securing its position as the third-largest cryptocurrency by market cap, overtaking the largest stablecoin Tether.
And this Altcoin surge is not restricted to XRP only. Over the past 24 hours, Tron (TRX) and Binance Coin (BNB) have taken the spotlight. Both have smashed through their previous all-time highs, with TRX experiencing a remarkable 70% surge to surpass $0.43, establishing a new peak in its performance. This pattern underscores the broad-based enthusiasm and market rotation fueling altcoin gains during this period.
Historically, "alt seasons" follow Bitcoin rallies as investors diversify into lower-cap assets seeking higher returns. This trend is amplified by the profitability of speculative trades during bull markets. The 2024 altcoin rally mirrors past cycles, such as those seen after Bitcoin's 2017 and 2021 bull runs. As Bitcoin struggles to breach the psychological $100,000 level, for now, the rest of the cryptos are playing a catch-up game.
Let’s analyze the chart above to decode the cyclical nature of the crypto bull cycle. The graph compares the price performance of Bitcoin (BTC) and XRP over time, with Bitcoin shown in red and XRP in yellow. It highlights several key moments where XRP significantly outperformed Bitcoin in percentage gains. Around 2014, XRP experienced its first major price spike, briefly surpassing Bitcoin's relative gains before retracing.
Another significant divergence occurred during the 2017–2018 crypto bull market, where XRP surged sharply to reach an all-time high, overshadowing Bitcoin’s performance during that period. Most recently, in 2024, XRP has seen another dramatic rally, breaking out of a prolonged consolidation phase and achieving new highs. In contrast, Bitcoin, while steadily climbing, remains below the $100,000 milestone.
This pattern underscores the cyclical nature of the cryptocurrency market. Altcoins like XRP often experience exponential gains during "altcoin seasons," outpacing Bitcoin during specific phases of bullish market activity. XRP’s performance also highlights its potential as a high-risk, high-reward asset, driven by both its utility and speculative interest. And with the SEC off its back, its gains might be here to stay.
Another key takeaway from the chart is that XRP's sharp rallies, often driven by retail investor enthusiasm, have historically aligned with the later stages of Bitcoin's bull markets, something to keep in mind. I would leave you with the news that Donald Trump has nominated Paul Atkins, known for his crypto-friendly stance, to lead the SEC. The crypto market could be gearing up for another significant push higher as a friendlier regulatory regime takes control of the helm in the U.S.
Originally published at Substack.
