The dominance index for altcoins has increased by about 75% since the beginning of 2020.
Since the beginning of June, Bitcoin has been extremely stagnant in relation to its price performance. However, in the meantime, other digital assets on the market have increased in value. In the past, Bitcoin had high dominance over altcoins. But lately the situation is totally different.
Looking at the graph above, it can be seen that the Bitcoin domain (orange) has declined since the first week of May. On the other hand, the dominance index for altcoins has increased by about 75% since the beginning of 2020.
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Binance Futures and Perpetual Altcoin Contracts
Now, according to one report Binance’s recent revival in the altcoin market is largely due to the increase in trading volumes for perpetual altcoin contracts on various exchanges. Since the beginning of the month, the total volume of perpetual altcoin futures has increased from $ 2 billion to $ 5.1 billion, representing an increase of 150% over just under 3 weeks.
However, before reaching a conclusion, it is important to note that futures contracts do not affect altcoin prices, but rather the opposite. According reported in June, the derivatives market does not really affect the increase, but rather the price improvements.
The report also shows the importance of Binance Futures in the perpetual altcoin futures market:
“Market share has increased from 19% to 41% since mid-June. In contrast, Huobi, which came in second with a 31% market share, saw its share in the altcoin future market drop from 51% to 31% in the same period. “
Over 60% of Binance’s trading volume last month came from altcoins
Although “altseason” is a term used in the community with some regularity, the big names in the crypto universe rarely agree or enter a rally led by altcoins. However, Changpeng “CZ” Zhao, CEO of Binance, may be heading in the opposite direction, as, according to him, the current market may be moved by altcoins.
In a interview Recent, the CEO of Binance revealed that more than 60% of the exchange’s trading volume last month came from altcoins, an interesting development, as at the same time, Bitcoin’s valuation continued to stabilize on the charts.
Such statements by personalities in the crypto universe like CZ suggest that positive sentiment towards altcoins is significantly high at the moment, one that could lead to a huge bull rally in the coming months.