Altcoin Season Index jumps from 24 to 58, with Ethereum’s $140B DEX volume and whale accumulation signaling an imminent altseason.
Over the past month, the cryptocurrency market, which encompasses high-value currencies such as Bitcoin (BTC) and Ethereum (ETH), has experienced highly volatile and unexpected fluctuations.
In the past 30 days, BTC has experienced a 6% decline, whereas ETH has experienced a 22% increase during the same period.
Although these movements have resulted in billions of dollars in losses for the market, Ethereum’s monthly decentralized exchange volume surpassed $140 billion in August, according to data from DefiLlama.
The volume exceeded the all-time peak of $117.6 billion set in May 2021 by a substantial margin.
Additionally, the heightened DEX volume demonstrates resilient liquidity and trader confidence in the face of market volatility, which resulted in significant liquidations.
High Level of Engagement Favors Altseason
The robust on-chain engagement demonstrates the potential for capital to migrate from centralized crypto exchanges to DEXs and the increased utility of decentralized finance protocols. This also suggests interest in altcoins, as many low-cap tokens are typically not listed on CEXs.
According to DefiLlama, the Ethereum-based DEX Uniswap generated the highest volume across DeFi in the past 30 days, totaling $76.5 billion.
The altseason index has increased from 24 to 58 over the past two months, according to data from CoinMarketCap. The indicator indicates that investors and merchants have focused on altcoins rather than Bitcoin.
Assume that the market does not experience any unforeseen macroeconomic tensions. In that event, Ethereum and its fellow altcoins are expected to garner substantial interest from confident investors in the months ahead, reminiscent of the 2021 altseason.
