Bitcoin’s (BTC) dominance rate has dropped notably this month, sparking hopes for a full-blown alt season or period where the bull market spreads beyond BTC, lifting valuations in other sectors of the digital assets market.
Joao Wedson, CEO and founder of crypto data analysis platform Alphractal, expects a full-blown alt season to unfold in June.
Bitcoin’s dominance rate, which measures the leading cryptocurrency’s share of the total digital assets market, has dropped from roughly 65% to 62% in one week, ending a prolonged five-month uptrend, according to data source TradingView.
During the same time, the total crypto market capitalization has increased from $2.90 trillion to $3.24 trillion.
The contrast suggests a shift in investor interest from bitcoin toward alternative cryptocurrencies.
Per Wedson, the altcoin season is already underway and the BTC dominance is expected to decline rapidly in the coming months. Wedson’s proprietary altcoin season index, which focuses on select 57 altcoins, shows 37 of those coins have outperformed BTC in the past 60 days.
“Even if BTC drops in the coming weeks, most altcoins have already bottomed out, and it’s unlikely they’ll fall below recent price levels. Part of bitcoin’s $2 trillion market cap is likely to flow into altcoins. So make sure to analyze your altcoin against BTC pairs (e.g., ETH/BTC or COTI/BTC),” Wedson said on a detailed post on X.
However, broader measures suggest the bull market has yet to expand beyond BTC. For instance, CoinMarketCap’s altcoin index, which focuses on top 100 coins, remains stuck at 27 to suggest “bitcoin season.”
Several exchanges including Binance and Korean platform Coinone have listed NEXPACE (NXPC), leading to a 115% surge in the token’s value on the back of $1 billion in trading volume in the first three hours of trading.
NEXPACE is a PC role-playing game that features on-chain item ownership. It is the the blockchain arm of South Korean video game developer Nexon.
Binance Alpha users that have accumulated 187 Alpha points can claim 198 NXPC, worth $629 at current prices. Points are accrued by holding crypto tokens on the Binance exchange or in the Binance wallet.
Binance’s Alpha product is a way of distributing newly-launched tokens to users by accumulating points. It caused a stir in December when the platform’s Chinese social media channel unintentionally posted a list of tokens that would potentially be launched, prompting the tokens to spike then crash back down.
NXPC has debuted at a $550 million market cap with a fully diluted value (FDV) of $3.2 billion. FDV is calculated by multiplying the total supply by asset price, whilst market cap only considers circulating supply.
More than $240 million of the $1 billion trading volume took place on Binance, with traders on Korean exchange Upbit also racking up $100 million worth of volume.
