Bitcoin (BTC) price consolidation leads to price increases for AVAX, HNT, BLUR and RUNE

November brought explosive gains for altcoins as a host of smaller cryptocurrencies outperformed Bitcoin (BTC), leading to calls for an altcoin season.

Transaction volume on Avalanche's blockchain also saw an increase during the month, recording its highest weekly traffic in a year with $2 billion in transactions, according to a report from blockchain analytics firm IntoTheBlock.

The report also noted a significant increase in inflows to Avalanche in the final two quarters of the year, with net inflows of $79 million in the third quarter and $56 million in the fourth quarter through the end of November, helping to rejuvenate the ecosystem .

Internet of Things communications protocol Helium (HNT) also stood out last month with a 110% increase, data from CoinDesk shows. Other notable leaders include non-fungible token (NFT) marketplace Blur's Token (BLUR) and decentralized cross-chain liquidity protocol THORchain's native cryptocurrency (RUNE), both of which doubled in price over the month.

Bitcoin (BTC), meanwhile, posted a 10% monthly gain and spent most of the month between $34,000 and $38,000. After several previous breakout attempts were quickly sold off, the largest cryptocurrency by market capitalization apparently jumped above the range on the last day of November to hit a new yearly high of $38,800.

The second-largest cryptocurrency, Ether (ETH), gained 13% in November, stabilizing and consolidating above $2,000 for the first time since April.

Losing momentum in large-cap cryptocurrencies prompted investors to shift their profits to riskier areas of the digital asset market.

This is evident in the sector performance of the CoinDesk Market Index, which posted larger gains than BTC. The Culture and Entertainment Sector Index (CNE) – a proxy for NFT and Metaverse tokens – and the DeFi Sector Index (DCF) rose 42% and 39%, respectively, in the last month.

The increasing breadth of the crypto rally signals that we are in the midst of “altcoin season,” investment advisory firm ByteTree said in a report this week. Market watchers refer to altcoin seasons as periods when smaller cryptos outperform Bitcoin.

ByteTree data shows that about half of the top 100 cryptocurrencies have a neutral or rising trend compared to BTC. “This confirms that it is peak season,” the report said.

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