Are Altcoins Currently Outpacing Bitcoin?

▲ Cryptocurrency ©

While the altcoin market has not yet completely surpassed Bitcoin, the spark for capital rotation has already begun to ignite.

According to cryptocurrency market data aggregator CoinMarketCap on May 10 (local time), the Altcoin Season Index recorded 47/100, still remaining in the Bitcoin Season phase. However, the index has risen by 2.17% over 24 hours and 17.5% over the past week, indicating a detected change in internal market sentiment.

Bitcoin (BTC) dominance stood at 60.16%, a decrease of 0.18 points from 24 hours prior. While Bitcoin still holds the market's center, there's a slow movement of funds into some high-risk, high-return altcoins. Although it's still difficult to call it a distinct altcoin season, it can be interpreted that the market has entered a transitional phase where Bitcoin's sole dominance is easing.

The surge was led by meme coins and artificial intelligence (AI) themed altcoins. SWEAT soared by 285%, Sahara AI (SAHARA) increased by 29%, and Quark AI (Q) rose by 37%. CoinMarketCap explained that these surges drove the Altcoin Season Index higher, and investors are shifting their focus from Bitcoin's stability to smaller and medium-sized thematic assets with higher volatility.

Market sentiment is also gradually changing. Some traders reacted with “Altcoins have finally started to wake up,” and there were evaluations that liquidity is moving into leading ecosystem assets like Jupiter (JUP) and Internet Computer (ICP). Furthermore, it's noteworthy that according to Santiment data, $1.29 billion worth of Tether (USDT) moved out of exchanges on May 9. This can be interpreted as a sign that holders are securing ready capital for future purchases.

Ultimately, the current market is in a stage where altcoins are slowly beginning to move while Bitcoin maintains its dominance. If the CoinMarketCap Altcoin Season Index stably surpasses 50/100, the market could receive a signal that it has entered a full-fledged capital rotation phase.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*