Cryptocurrencies have experienced extraordinary activity in recent weeks, as documented by Glassnode. The largest altcoins, including Ethereum, XRP, Solana, and Dogecoin, delivered remarkable gains to investors over a seven-day period. According to TradingView data, Ethereum rose by 25.5%, XRP by 16.2%, Solana by 13.6%, and Dogecoin by 25.5%. This growth occurred during July and August, primarily driven by intense speculative activity in the market.

Top cryptocurrencies recorded significant gains

Such broad altcoin appreciation indicates that investor interest is spread across multiple projects rather than concentrated on a single dominant token. This phenomenon may signal healthier market dynamics, but it also increases the likelihood of larger price swings if market sentiment changes.

The performance of altcoins can also be analyzed through the market capitalization weighted basket of major altcoins and evaluating their 7-day logarithmic returns. This method accounts for the different sizes of individual assets, providing a more accurate view of their behavior.

By tracking how much altcoin prices deviate from their usual average, periods can be identified when they perform significantly better or worse than normal. Over the past four months, three periods were identified when altcoins grew exceptionally fast, yielding above-average profits for investors.

Get 100 $ bonus on Binance

Rising trend heats up

Based on current data, it may seem that the crypto market is heading toward an altcoin season. The Fear and Greed Index from Alternative shows a value of 73 out of 100, clearly indicating a dominance of greed among investors.

On the other hand, data from Blockchain Center still indicates a neutral zone with a value of 53 out of 100, so technically it is not yet an altcoin season. According to this platform’s definition, 75% of the top 50 coins would need to outperform Bitcoin over the last 90 days. However, the index has been rising for over a month, so the altcoin season could arrive before the end of summer.

In addition to price growth, there has also been a sharp increase in open interest, reaching a new all-time high of $47 billion. This increase indicates greater use of leverage in the market. While leverage can amplify profits, it can just as quickly deepen losses, making the market environment more fragile. High leverage makes the market more sensitive to rapid changes in investor sentiment, potentially causing sharp price movements in both directions.