Altcoin season stalls as major tokens struggle to recover following the recent market-wide crash.
Summary
- Altcoin Season Index slides to 35, its lowest level since August, signaling fading investor appetite.
- Major tokens like Ethereum, BNB, and Solana are struggling to regain momentum, with broader weakness spreading across top altcoins and meme coins alike.
- Up to sixteen altcoin ETF applications await SEC decisions next week, a development that could inject liquidity and reignite a sector-wide recovery.
The long-awaited altcoin season isn’t edging any closer as overall market appetite cools, keeping momentum for alternative cryptocurrencies subdued.
Data from CoinMarketCap shows the Altcoin Season Index at 35, marking its lowest level since August. The index, which measures the relative strength of altcoins compared to the broader market, has dropped sharply from 72 in September and 55 last week, marking one of the fastest declines of the year.
The gauge last peaked at 87 in December 2024, its highest level in nearly a year, when optimism was running high for a sustained altcoin rally. The last time the index hovered near its current level, sentiment was turning bearish across the sector, and that mood appears to have returned.
The downturn reflects renewed weakness in leading altcoins after the broader market correction. Ethereum (ETH) is currently trading below $4,000, down more than 14% on the week. BNB (BNB) has dropped over 10% on the day, slipping to about $1,211 at press time.
Similarly, Solana (SOL) is back below $200, trading at $196, after setting a high of $211 earlier today. Each of these assets has struggled to regain meaningful momentum, as investors pull back amid the broader market cooldown.
Other altcoins have also faltered. Dogecoin (DOGE) is trading at $0.20 after dropping over 20% from recent highs, while XRP (XRP) is back below $3. Lower-tier tokens have seen even sharper losses, with most erasing gains made during the last market rally.
ETF approvals to fuel Altcoin season?
Amid this weakness, a potential wave of altcoin-based ETF approvals could soon shift market sentiment. The U.S. SEC is expected to rule next week on up to sixteen applications for funds tracking assets such as Solana, XRP, Litecoin, Cardano, and others.
Issuers, including Grayscale, 21Shares, Franklin Templeton, and Bitwise, are among those seeking approval to launch the funds, which would give traditional investors regulated access to these tokens and potentially bring fresh liquidity into the market.
Market analysts have placed approval odds as high as 100%, projecting that the majority of the proposed funds will clear regulatory review this month..
If the approvals proceed as expected, the resulting inflows could provide the spark altcoins need to recover from recent lows. A successful rollout could lift trading activity, and potentially push the Altcoin Season Index back toward the bullish territory it last reached earlier in the year.
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