November brought explosive gains for altcoins as a wide range of smaller cryptocurrencies outperformed bitcoin (BTC), prompting calls for an altcoin season.
Transaction volumes on Avalanche’s blockchain also experienced an uptick over the month, recording its highest weekly traffic of $2 billion in transactions in a year, a report by blockchain analytics firm IntoTheBlock pointed out.
The report also noted a sizable increase in inflows to Avalanche over the last two quarters of the year, with $79 million in net inflows in Q3 and $56 million in Q4 through late November, helping rejuvenate the ecosystem.
Internet-of-things communications protocol Helium (HNT) also stood out with a 110% rally last month, CoinDesk data shows. Other notable best-performers include non-fungible token (NFT) marketplace Blur’s token (BLUR) and decentralized cross-chain liquidity protocol THORchain’s native crypto (RUNE), both doubling in prices through the month.
Bitcoin (BTC), meanwhile, booked a 10% monthly gain, spending most of the month between $34,000 and $38,000. After multiple previous breakout attempts being sold quickly, the largest crypto by market cap apparently jumped above the range on the last day of November, hitting a fresh yearly high of $38,800.
The second-largest crypto, ether (ETH), increased 13% in November, stabilizing above the $2,000 level for the first time since April and consolidating there.
Slowing momentum for large-cap cryptocurrencies prompted investors to rotate profits into riskier corners of the digital asset market.
The widening breadth of the crypto rally signals that we are in the midst of an “altcoin season,” investment advisory firm ByteTree said in a report this week. Market observers refer to altcoin seasons as periods when smaller cryptos outperform bitcoin.
ByteTree data showed that about half of the top 100 cryptocurrencies are in neutral or rising trend versus BTC. “That confirms it is alt season,” the report said.
