Binance CEO Changpeng Zhao believes the crypto market has entered altcoin season.
Since June 2020, altcoins have been seeing a significant increase in value. Specifically, there has been a double-digit surge almost every day in the past few weeks. Last week, Chainlink (LINK) surged by almost 40% within 24hours, reaching a new all-time-high (ATH). Additionally, the DeFi sector has also been on the rise.
According to DeFiPulse, DeFi total value locked (TVL) has been setting new all-time highs (ATH) almost daily. It recently crossed its old ATH and is now approaching $3 billion. In June alone, Compound (COMP) got listed on four major exchange platforms including Binance and Coinbase. As at press time, the TVL is at $2.9 billion with a market dominance of 21.75%.
Although it is not uncommon to hear speculations about altcoin season, CZ confirmed the narrative in a Bloomberg interview. The CEO said that “data pretty much shows that there’s an alt-season right now.” He also revealed that a majority of Binance and Binance Futures trading volume (up to 60%) come from altcoins.
A possible explanation for the increase in demand could be Elon Musk’s endorsement of Dogecoin and DOGE.
Interestingly, Bitcoin has been relatively stable under $9,300 in the past few weeks regardless of altcoins’ growth. But CZ believes it will ultimately cross the $10,000 mark.
Image Credits: Pixabay
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