news 
Bitcoin Slows, Altcoins Surge: Coinbase Believes a Full-Scale Altseason Here
The cryptocurrency market has witnessed a significant shift in recent times. While Bitcoin’s (BTC) price has slowed down, alternative cryptocurrencies or altcoins are experiencing a surge. This trend has led major exchange Coinbase to reevaluate its outlook for the current market conditions.
According to reports, Coinbase believes that the current situation may be indicative of an impending full-scale altcoin season. The crypto exchange cited several reasons in support of this notion. First and foremost, it emphasized the significant decline in Bitcoin’s market dominance from 65% in May to around 59% by August. This trend suggests early signs of capital rotation into alternative cryptocurrencies.
Moreover, Coinbase highlighted that liquidity trends are becoming increasingly favorable for altcoins. The exchange pointed out improvements in order book depth, a hike in perpetual trading volumes and spot, as well as reduced slippage. These developments make it easier for investors to execute trades without substantial price impact. This ultimately supports the broader market participation in altcoins.
It is worth noting that while some altcoins have garnered significant attention, there has been divergence between the Altcoin Season Index and total altcoin market capitalization. Coinbase attributed this disparity mainly to growing institutional interest in Ethereum (ETH). It appears that large-scale investors are flocking towards ETH due to the emerging narrative around stablecoins and real-world assets.
Additionally, Coinbase pointed out that certain tokens tied to ETH have demonstrated an extraordinary sensitivity to the recent rally. This is particularly true for tokens such as ARB, ENA, LDO, and OP. For instance, LDO recorded a staggering 58% gain in just one month due to its unique ability to provide straightforward exposure to ETH through liquid staking. Notably, this asset maintains a beta of 1.5, implying that it is 50% more volatile than the flagship cryptocurrency.
As previously mentioned, regulatory clarity has also played a significant role in driving these developments. The US Securities and Exchange Commission (SEC) recently issued a statement asserting that liquid staking does not qualify as an offer or sale of securities provided the underlying activities are primarily “ministerial” and any rewards passed one-for-one from the protocol.
The cumulative effect of these factors may be indicative of an impending full-scale altcoin season.
Source: cryptopotato.com
