- Altcoins like $MATIC and $ONE soared 135x and 45x in months, fueled by collapsing Bitcoin dominance in 2021.
- Polygon’s steady rise and Harmony’s rapid ascent during altseason underscore the explosive growth potential of smaller-cap cryptocurrencies.
- Bitcoin dominance dropped from 68% to 42% sparking capital rotation into altcoins and leading to unexpected gains during the altseason.
Massive altcoin rallies may occur in the cryptocurrency market, replicating the strong rise observed in 2021. CryptoBullet shows examples of Harmony ($ONE) and Polygon ($MATIC) in a tweet. During that period, both altcoins demonstrated gains in short timeframes, showcasing the explosive potential of altseason.
Harmony increased 45 times in just three months, whereas Polygon increased 135 times in four months. These surges demonstrate the revolutionary possibilities in an altcoin season driven by the decline of Bitcoin’s hegemony.
Polygon’s Explosive Growth
The price of Polygon started to move upward from mid-2020 to early 2021. During this period, in 19 weeks, $MATIC increased from around $0.002 to $2.72. Its exponential growth was driven by increased usage of its Layer 2 scaling solutions and general investor optimism during a bull market cycle.
Source: CryptoBullet
Besides this remarkable price action, Polygon demonstrated relative stability after its peak. This suggests a more sustainable trajectory compared to other altcoins. Its consistent momentum positioned it as one of the top-performing assets during the period.
Harmony’s Rapid Ascent
Harmony ($ONE) followed a similar trend, achieving a rise during the same timeframe. Within 12 weeks (84 days), Harmony surged 4,462.82%, increasing from $0.005 to $0.22. Although the ascent was faster in percentage terms, the rally spanned a shorter timeframe.
Consequently, Harmony saw sharper fluctuations after its peak compared to Polygon. However, the intensity of its price movement underscores its potential during bullish cycles. It also highlights the concentrated attention smaller-cap assets can attract during an altseason.
Declining Bitcoin Dominance and Altseason Trends
Bitcoin’s market cap dominance dropped during this period, falling from around 68% to 42%. This decline paved the way for altcoins like $MATIC and $ONE to flourish. The data suggests a clear capital rotation into altcoins, sparking a broader altseason.
Moreover, this trend highlights the diversification within the crypto market. Investors increasingly sought opportunities in smaller-cap assets for higher returns. Hence, these developments reflect significant market shifts favoring altcoins during Bitcoin dominance collapses.
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