Altcoins have had a tough couple of months, especially when trading against Bitcoin, as most have marked tremendous declines. Bitcoin has dominated the market, accounting for more than 64% of its value. 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 answer is when the new altcoin season will bloom. In the past couple of months, however, alternative cryptocurrencies have suffered as Bitcoin has dominated the market.
At the time of this writing, the BTC dominance rate stands at 64.6%. However, weighing in on the matter today was Changpeng Zhao, CEO at Binance, who argued that the next altcoin season would be substantially different from 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 was referring to was the situation back in 2017 when thousands of projects began fundraising not by having actual products but rather by pitching whitepapers and investing in aggressive marketing. However, the hype was so strong back then that ICOs would raise millions in mere days, only to go underwater not long afterward.
According to CZ, this will no longer be possible, because the industry is much more mature now and people are a lot more cautious when buying into projects of this kind.
Signs of Hope For Altcoins?
Looking at the wider market, Bitcoin has showed slight signs of weakness in the past few weeks. As we said above, the BTC Dominance Index, which tracks Bitcoin’s relative share of the overall cryptocurrency market, stands at 64.6%.
In other words, Bitcoin ceded about two percent of the market to altcoins in the past two weeks alone.
It’s also worth noting that we could see green across the board today, as almost all of the major altcoins are marking slight increases.
It will be interesting to see whether the temporary weakness in Bitcoin can provide a boost for the suffering altcoins and whether Changpeng Zhao will turn out to be right in his beliefs.