Altcoin season occurs when many altcoins are following the “big brother” ETH. Of course, the initial trigger came from ETH but then most of the top coins continue to follow the same path regardless of ETH’s performance.
LINK is one of the few coins commonly distributed during altcoin season. From late March to mid-May, when most hit ATH in turn, ETH increased by nearly 185%.
LINK also follows the performance of ETH and is up nearly 130% in the same time frame.
It’s the same this time because ETH is up 5% in 24 hours and LINK is up 8%. While the two are highly correlated, it should be noted that there is another key factor that has always supported LINK to maintain an uptrend on the chart.
LINK’s network performance has improved a lot over the past few months. The June NVT high is today’s low, implying that network valuations outstrip trading volume.
Historically high NVT values coincide with market tops. The current growth rate also shows that LINK is in a reasonable state of development.
Observing the ascending process of the indicator, it can be argued that there is still room for the upside and that when it does peak in the coming weeks, the price of LINK will move even higher.
Furthermore, LINK may attract investors due to its similar profitability to ETH, as shown by the MVRV ratio projections. A positive ratio usually indicates an investor is earning more than usual. That’s been the case for both coin and HODLer for quite some time.
In fact, investors have more long-term trust in LINK than in ETH. ITB data highlights the average HODLer holding ETH for 1.5 years and LINK for over 2.7 years.
Therefore, keeping in mind the current trends, it can be said that an investor will miss out on a lot of action if the portfolio is not LINK during altcoin season.