In a bullish turn for the altcoin market, Global Macro Investor founder Raoul Pal has shared an optimistic perspective regarding the TOTAL3 market cap, which excludes Bitcoin and Ethereum. In his recent post on X, Pal emphasized the significance of a chart indicating a potential breakout for the TOTAL3 index, suggesting that it could ignite considerable movement within the altcoin sector.
The TOTAL3 market cap, which represents the valuation of the broader cryptocurrency ecosystem outside of Bitcoin and Ethereum, currently stands at approximately $1.09 trillion. This marks a 3% increase since the beginning of the week. Pal noted that the index is approaching the upper resistance of an inverted descending triangle, having been in a consolidation phase since it peaked at $1.13 trillion in November 2021.
Historically, the TOTAL3 market cap experienced a notable breakout during a rally in May 2020 when it surged from around $65 billion to a height of $1.13 trillion by late 2021. Such a breakout catalyzed unprecedented gains in altcoins, drawing significant investment away from Bitcoin and Ethereum and contributing to multiple all-time highs for smaller tokens. Should a similar scenario unfold this time, it could herald a long-anticipated altseason, with XRP likely taking a lead role in a market that would ideally see gains against Bitcoin and Ethereum.
Adding further weight to altcoins’ potential rise is the recent decline in Bitcoin’s market dominance, which has diminished from a high of 66% in June to around 58.20%. This decline occurred alongside a recovery in Ethereum, which has been instrumental in bolstering the altcoin space. Bitcoin’s market share is currently on track for its third consecutive day of downward trend, fueling enthusiasm for altcoins to gain traction.
Pal has previously compared the current market dynamics to those witnessed in the 2017 bull cycle, underscoring the impact of a weakening dollar as another catalyst for a potential market upturn. As the momentum builds, his focus remains on XRP, with expectations that it will reach unprecedented highs.
Overall, the combination of the favorable technical chart regarding the TOTAL3 market cap, the decline in Bitcoin’s influence, and the historical context offers a glimpse into a possibly transformative phase for altcoins in the cryptocurrency landscape. Investors are advised to conduct their own research, as the volatility of the market poses inherent risks.
