Altcoins like Ether (ETH), Dogecoin (DOGE) and Ethereum Classic (ETC) are spearheading a new alt season that seems to have taken off with a bang. Since a rising tide usually lifts all boats, there are several other cryptocurrencies that are benefiting from this growing interest in altcoins. Ether, however, may be the one generating the waves.
The price of ETH, the flagship altcoin, increased more than 65% over 30 days to finally break through the $3,500 barrier on May 6. This takes the yearly gains for the token to over 1,500%, as it was trading in the $215 range this time last year. The price surge led its market capitalization to go beyond $400 billion for the first time.
Cointelegraph asked Joshua Frank, CEO of The TIE, about the social media trends around Ether and what the cryptocurrency’s gains mean for altcoins. He answered: “Many investors consider Ethereum a proxy for the alt-coin market, and tweet volume continues to increase exponentially since July 2020. […] Tweet volume over 24 hours recorded an incredible 59,000 as Eth continues to push all-time highs.”
In percentage terms, Ethereum Classic — a continuation of the original Ethereum blockchain — has seen its value increase even more than the more popular coin of its sister blockchain. According to CoinGecko, ETC’s price gained nearly 400% in seven days to hit an all-time high of $167 on May 6. The Ethereum Classic blockchain sprang into existence after most developers migrated to the now more popular Ethereum blockchain following a hack on The DAO’s smart contracts in 2016, which cost the protocol $50 million in ETH.
The dominance of Bitcoin (BTC) has also dropped when compared with the 70% range it was resting in at the start of the year. It has been declining since, reaching a year-to-date low of 45.70% on May 6. The dominance metric essentially compares the market cap of BTC with that of all other cryptocurrencies combined.
BTC dominance usually decreases when altcoins instead dominate…