Could Ethereum’s Rise Trigger the 2024 Altcoin Season?

Crypto News – Because of Ether’s (ETH) most recent performance, analysts at cryptocurrency exchange Bitfinex believe that we are in the early stages of an altcoin season.

Could Ethereum’s Rise Trigger the 2024 Altcoin Season?

This week’s Bitfinex Alpha report suggests that investors’ attention is shifting from Bitcoin (BTC) to other digital assets, as evidenced by the recovery in ETH‘s value and the larger altcoin market. ETH has seen tremendous gains over the last week, reaching its best weekly close in 97 weeks and its greatest value in 22 months. The second-largest digital asset has often risen beyond $3,000 and has shown resilience in the face of transient declines.

The Reasons Behind Ethereum’s Rise

Several significant advancements in the Ethereum ecosystem have been connected to the rise in ether. These developments include the introduction of staking platforms such as EigenLayer, the planned release of many scaling solutions, the likely approval of a spot Ethereum ETF in the US, and the next Dencun upgrade.

These developments are perceived as significant catalysts for Ether’s resurgence, especially after a period where it had lagged behind BTC in terms of percentage growth over several months,

Bitfinex analysts

In the last four months, cryptocurrency exchanges have reported significant Ether withdrawals; since the start of the year, 800,000 ETH, or around $2.4 billion, have left the platforms. The biggest supply shortage for ETH after the Shapella upgrade is shown by the decline in the exchange reserve. It is anticipated that this will drive up the price of ETH and even usher in an altcoin season.