The crypto market is always going through cycles of booms, corrections, and trends that follow across the ecosystem. One of the most exciting phases for investors is the “Altcoin Season”, which is a time when altcoins (any crypto other than Bitcoin) see huge growth, outperforming Bitcoin in terms of gains. But with the market’s volatility and changing dynamics, many are asking: Is the Altcoin Season still coming?
Let us have a closer look at what is altcoin season, what triggers it, and whether the next one is around the corner.
What Exactly is Altcoin Season?
Altcoin season refers to a period where altcoins dominate the market. During this time, Bitcoin’s share of the overall crypto market cap falls as altcoins increase in price and popularity. This leads to investors shifting their funds from Bitcoin into smaller altcoins to get more returns. Many altcoins will go through rapid highs, doubling, tripling, or even getting 10x returns within just weeks. These altcoin seasons are often short-lived but intense. You should understand that altcoin season is not a scheduled event and has no fixed time to happen.
In contrast, Bitcoin season points to those phases when Bitcoin’s price increases significantly and it dominates over the altcoins. Altcoins don’t follow a strict schedule but mostly happen according to some market conditions. Bitcoin usually sets the tone for the broader market. After BTC reaches a major rally or price peak, investors move profits into altcoins. This triggers an altcoin increase. Bitcoin usually holds a large share of the total crypto market cap, so when Bitcoin dominance starts declining below 50%, it shows that money is flowing to altcoins.
Also, when traders and investors believe an altcoin season is coming, they jump into smaller coins hoping for higher gains. The rise of new trends like DeFi (Decentralized Finance), NFTs, or Layer 2 solutions also gathers interest in some altcoins. As crypto gains mainstream attention, more retail investors are entering the market and buying altcoins because they are more affordable and have the potential for huge returns.
History of Altcoin Seasons in the Past
In the past, there were huge surges in altcoin prices during altcoin seasons. The bull runs of 2017-2018 and 2020-2021 are examples of some notable altcoin seasons. We can look into history to refer to it and understand the activity of altcoin seasons and their effect on the cryptocurrency market.
- 2017-2018: During the 2017 bull run, Bitcoin hit a high of nearly $20,000. As BTC began to stabilize, altcoins surged. During this period, projects like Ethereum (ETH), Ripple (XRP), and Litecoin (LTC) saw massive gains, even creating overnight millionaires. Tezos was another strong-performing altcoin during this time which raised a huge amount.
- 2020-2021: Following Bitcoin’s rally to $64,000 in early 2021, altcoins exploded. Ethereum reached all-time highs, and coins like Solana (SOL), Cardano (ADA), and meme tokens like Dogecoin (DOGE) saw huge price increases.
These historical patterns show that altcoin seasons typically follow Bitcoin rallies and occur when BTC dominance drops, which signals that altcoins are ready to outperform.
Is The Altcoin Season Near?
Let us analyze today’s market landscape to see whether another altcoin season is around the corner. At the time of writing, Bitcoin dominance is at around 50-52%. If dominance starts declining, this could be a strong indicator that investors are shifting focus to altcoins. A drop below 50% could indicate the beginning of altcoin momentum.
After a challenging bear market in 2022, the market sentiment has improved in 2024. There is an increase in institutional interest and innovations like AI-driven blockchain projects are bringing the focus back to altcoins. There are also major trends on the radar. Platforms like Arbitrum and Optimism are gaining traction for scaling Ethereum. Tokens focusing on artificial intelligence like Fetch.ai and SingularityNET are also gaining investor attention. Altcoins also now have the advantage of strong utility in finance, gaming, and decentralized applications (dApps).
As of now, altcoins are not majorly outperforming Bitcoin, which is a key indicator of an altcoin season. Analysts also suggest Bitcoin halving and other macroeconomic indicators could trigger a comeback in altcoins. And according to historical patterns, altcoin seasons mostly follow Bitcoin’s major price movements, especially after it breaks above past highs.
Risks to Note
Altcoin season does give investors huge profits and opportunities but they must also remember that it comes with increased risks and market volatility. Altcoins can surge, but they can also plummet just as fast. Timing is crucial when it comes to these coins. There are also possibilities of sudden regulatory announcements which can impact altcoins, especially smaller projects. Always research well before investing, as some projects may lack long-term value and only have short-term hype.
Final Thoughts
So, is the altcoin season still coming? While no one can predict the market with certainty, there is speculation about a larger altcoin rally in 2025, which will be driven by new trends and institutional interest in cryptocurrencies. This suggests that the current market movements might be setting the stage for more gains in the near future. If you are thinking of investing, it is important to prepare well. Diversify your investments, focus on altcoins with strong fundamentals, and manage your risk well. Staying informed and ready will help you make the most of what’s to come.
Disclaimer: Please note that this is not financial advice and is curated based on public information. DYOR and be informed before you decide to go for it.