Altcoins bounce back when bulls invest in large-cap tokens and Class 1 projects

The crypto market offers investors an “altseason” as the majority of altcoins in the top 100 on CoinMarketCap have rallied today.

Several large-cap tokens have hit multi-year highs, and all of this comes from Bitcoin (BTC) price struggling to hold on to news-driven gains as the week progressed.

One of the most notable feats was shown by Ethereum Classic (ETC).constant“The Ethereum (ETH) fork has grown in prominence over the past week as its commitment to the proof-of-work consensus mechanism caught the attention of ‘Robinhood’ miners and retail investors.

Data from Cointelegraph Markets and TradingView show that after hitting a low of $ 86.12 in early trading on Thursday, the ETC price rose 81% to hit a new all-time high of $ 179.83 during the 24-hour trading volume rose to a record $ 39.1 billion.

Several large-cap cryptocurrencies have seen significant gains recently, including Litecoin (LTC), which hit a one-year high against BTC, and Bitcoin Cash (BCH) the 68% rally, which rose above $ 1,500 for the first time since May 2018 is.

Layer 1 solutions increase with increasing transaction volume

Ether also hit a new all-time high of $ 3,605 as the excitement continues over the hard fork in London and the EIP-1559 launch scheduled for July.

Main # Ether Overhaul of the fuel charge #EIP-1559 planned for July, in #London Network upgrade https://t.co/mQrxvSt7aa via @cointelegraph

– Certificate (@AttestantIO) March 8, 2021

Cardano’s ADA token is another top project, the price of which hit a new all-time high at $ 1.69, and Tezos (XTZ) is up 23% after the start of the day, hitting a new record high at $ 8.05.

The “Ethereum killers” that emerged from the 2017-2018 bull market with double-digit gains include EOS, whose price rose 50% to as high as $ 12.57 that day, and Neo (NEO), which rose to Highs above $ 128 rose before the general market retracement caused most of the price decline.

Bitcoin dominance sinks to a new low

The steady strength of altcoins has resulted in a steady decline in Bitcoin dominance over the past month, falling to a low of 45.25% on May 6th. According to analysts, this is another sign that an altcoin season is in full swing.

While institutions appear to be less supportive of Bitcoin and Ether, retailers have been attracted to lower-priced tokens that offer the potential for higher returns, as demonstrated by the recent price boom in Dogecoin (DOGE).

If this trend continues, it is likely that Bitcoin’s dominance could decline further as new funds enter the crypto ecosystem via more widely distributed stablecoins.

The total crypto market cap is $ 2.346 trillion and the dominance of Bitcoin is 45.5%.