Social media discussions about an altseason have reached historic lows, according to blockchain analytics firm Santiment. The firm suggests that such periods often precede rallies in altcoins. XRP, as a leading altcoin, stands to gain if this pattern holds.
Blockchain analytics firm Santiment reported on March 3 that mentions of "altseason" on social media have dropped to levels not seen in years. "Thinking about an altseason right about now? Neither is anyone else," Santiment stated. "Historically, however, moments like these when social volume toward altcoin interest is at extreme lows are around the time that rallies begin."
Altseason describes a phase where investors shift funds from Bitcoin to other cryptocurrencies, driving rapid price increases. Santiment's analysis over the past two years examined weekly mentions of altseason across platforms, using Dogecoin's price as a proxy for speculative altcoin activity. The data revealed a pattern: low mention volumes correlated with price bottoms, while high volumes aligned with market tops.
XRP, the fifth-largest cryptocurrency by market cap, has often led altcoin surges in past cycles. In 2017, during the initial coin offering boom, its price rose from less than a penny to about $3.80. In 2021's DeFi summer, it climbed from $0.17 to nearly $2. Santiment noted that XRP benefits from a dedicated retail following and growing institutional interest through exchange-traded funds.
The firm explained the social volume dynamic: "When social volume toward ‘altseason’ gets high, this is commonly associated with tops. When conversations around ‘altseason’ hit rock bottom, that’s when large capital holders begin to typically pump the price."
Despite anticipation for a broad altcoin rally similar to 2017, recent gains have been limited to Bitcoin and a few select cryptocurrencies, leaving many altcoins, including Ethereum, behind.
