On November 15, the cryptocurrency market witnessed significant gains in several altcoins, including Solana (SOL), Avalanche (AVAX), and dYdX. This upward trajectory accompanied Bitcoin's rise to a high of $37,400. The notable increase in the value of these altcoins has led to declarations of an 'altcoin season' by analysts, with the total altcoin market capitalization reaching a 2023 peak of $659.5 billion.
The factors driving these price rallies vary, encompassing both sentiment and project fundamentals. dYdX, a decentralized exchange offering futures contracts on Ethereum Virtual Machine blockchain tokens, saw over 110% growth in its DYDX token price following its layer-1 blockchain launch on October 27. This growth is attributed to the on-chain distribution of fees to validators and stakers, with the platform reporting a 77.5% increase in fees and revenues, equating to $8.67 million in 30 days.
Solana's SOL token also marked an impressive performance, gaining over 166% in 30 days, despite being more than 4x below its all-time high. This surge in Solana's price is powered by increased user engagement, with its daily active users reaching a 2023 high of 200,000 on November 10. The uptick in users and a 78.2% increase in revenue, exceeding $1 million in 30 days, are primarily attributed to the success of Jito, a leading decentralized application on the Solana blockchain.
Avalanche's AVAX token, though generating less revenue compared to Solana and dYdX, has shown remarkable growth, with a 59% increase in gains in the past seven days and a 118% surge in 30 days. However, AVAX's price remains more than 7x below its all-time high.
While these altcoins demonstrate robust performance, Bitcoin continues to maintain its dominance in the market, with its dominance rate above 50% since October 16. The decrease in Bitcoin's dominance often signals a shift of funds into altcoins, marking the beginning of what many consider an 'altseason.'
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
