Altcoins have had a tough couple of months, especially when trading against Bitcoin as most of them marked tremendous declines. Bitcoin has been dominating the market, accounting for more than 64% of its entire share. However, the CEO of the world’s largest cryptocurrency exchange, Binance, believes that the next altcoin season will be bolstered by actual products and users.
The Industry Is Healthier
Perhaps one of the most common questions that the cryptocurrency community is looking to find an answer for is when the new altcoin season will bloom. So far in the past couple of months, however, alternative cryptocurrencies have suffered as Bitcoin dominated the market.
At the time of this writing, BTC dominance stands at 64.6%. However, weighing in on the matter was Changpeng Zhao, CEO at Binance, who noted that the next altcoin season will be substantially different than the one we had back in 2017.
They are still risky investments, but the industry is much healthier now.
— CZ Binance (@cz_binance) July 31, 2019
What Zhao referred to is a paradigm where back in 2017 thousands of projects began fundraising without having an actual product but rather pitching a whitepaper and investing in aggressive marketing. However, the hype was so strong back then that ICOs used to raise millions in a matter of days, only to go underwater not that long after that.
According to CZ, this will no longer be the case because the industry is much more mature now and people are a lot more cautious when buying into projects of the kind.
Signs Of Hopes For Altcoins?
Looking at the market, we can see that Bitcoin is showing slight signs of weakness in the past few weeks. As we said above, BTC Dominance, the index which tracks Bitcoin’s relative share in the overall cryptocurrency market, stands at 64.6%.
In other words, Bitcoin lost about 2 percent of the market to altcoins in the past two weeks alone.
It’s also worth noting that we can see green all across the board today as almost all of the major altcoins are marking slight increases.
It remains interesting to see whether the temporary weakness in Bitcoin can potentially provide a leg up for the suffering altcoins and whether Changpeng Zhao will turn out to be right in his beliefs.
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