Real Bitcoin (BTC) dominance falls against other proof-of-work coins

BTC Dominance Shifts, Signaling Altcoin Opportunity

A novel metric, the true Bitcoin (BTC) dominance index, gauges BTC's performance against a basket of mined coins, excluding ICO tokens and stablecoins. This metric offers a clearer indication of market dynamics.

The index has witnessed a recent shift in BTC dominance, falling from over 74% to 69.7%. This signals a potential expansion of the altcoin market, as investors seek higher returns.

Mined Coins: Still Viable?

Mined coins exhibit diverse profiles, including privacy-focused coins. Mining remains competitive, benefiting smaller networks adopting industrial approaches.

Dogecoin (DOGE), alongside Bitcoin, remains a successful mined coin. Its popularity stems from its meme potential rather than mining. However, Dogecoin's mining still relies on Litecoin's hashrate.

Other mined coins, such as Verge (XVG), have recently emerged from lows, indicating some potential for growth. However, BCH and LTC remain relatively stagnant despite high liquidity and adoption.

Altcoin Season: Uncertain but Viable

The shift in BTC dominance suggests the possibility of an altcoin season. However, recent performance indicates a slowdown in rallies and a return to sideways trading.

The altcoin season index has declined from a high of 89 points to 67 points, suggesting that BTC maintains its dominance.

While BTC is approaching its peak, altcoins remain a riskier investment. The crypto market faces shifting sentiment, and legacy coins and tokens may not rally as anticipated.

Despite these uncertainties, mined assets have demonstrated their resilience and long-term viability, supported by large pools and their resistance to replacement by new tokens.