The start of 2025 has reignited excitement across cryptocurrency markets, with both Bitcoin and alternative digital assets showing strong upward momentum. While Bitcoin continues to dominate headlines with record-breaking performance, many investors are turning their attention to altcoins in search of outsized returns. This growing focus brings a crucial concept into the spotlight: altcoin season.
Understanding altcoin season is essential for any crypto investor aiming to maximize opportunities within the market cycle. It represents a dynamic phase when alternative cryptocurrencies outperform Bitcoin, often delivering explosive growth and reshaping portfolio values.
What Exactly is Altcoin Season?
Altcoin season refers to a period in the crypto market cycle when alternative cryptocurrencies (altcoins) experience significant price surges, outpacing Bitcoin in terms of percentage gains and market activity. During this time, investor sentiment shifts from Bitcoin-centric strategies to broader exploration of emerging projects and decentralized ecosystems.
Key characteristics include:
- A noticeable decline in Bitcoin dominance
- Rising market capitalization and trading volume across altcoins
- Increased media attention and social buzz around non-Bitcoin assets
- Heightened volatility and speculative trading behavior
👉 Discover how market cycles can boost your investment strategy.
It's important to emphasize that altcoin season is not a scheduled event—it’s driven by market psychology, macroeconomic trends, and technological developments. Its duration can vary from weeks to months, and its intensity depends on investor confidence and capital flow.
Altcoin Season vs. Bitcoin Season: Understanding the Cycle
Cryptocurrency markets tend to oscillate between two dominant phases: Bitcoin season and altcoin season.
Bitcoin Season
This phase occurs when Bitcoin significantly outperforms other digital assets. It's typically marked by:
- Rising Bitcoin dominance (often above 50% of total market cap)
- Institutional inflows, especially through regulated products like ETFs
- Lower volatility compared to altcoin markets
Bitcoin’s surge in early 2024—fueled by the approval of spot Bitcoin ETFs in the U.S.—is a textbook example of Bitcoin season. During this time, BTC nearly doubled in value within months, drawing capital away from riskier altcoins.
Altcoin Season
In contrast, altcoin season emerges when:
- Investor confidence expands beyond Bitcoin
- Capital rotates into high-growth potential projects
- Market participants seek higher returns through diversification
While Bitcoin provides stability, altcoins offer higher risk-reward profiles. Tokens like Solana, Dogwifhat, and other meme-based or utility-driven coins often lead the charge during these cycles.
Historical Altcoin Seasons: Lessons from the Past
Analyzing previous alt seasons helps identify patterns and anticipate future movements.
2017–2018: The ICO Boom
One of the most notable alt seasons occurred during the initial coin offering (ICO) frenzy. Bitcoin dominance dropped from 86.3% in late 2017 to just 38.69% in early 2018. As BTC price corrected from over $20,000 to under $6,000, investors pivoted to new blockchain ventures.
Projects like EOS, which raised over $4 billion, and **Tezos**, with $232 million in funding, exemplified the era’s speculative energy. Many early investors saw exponential returns before the market cooled.
2020–2021: DeFi and Meme Coins Take Over
The pandemic-era bull run saw a resurgence of alt season, powered by decentralized finance (DeFi), NFTs, and the rise of meme coins.
Dogecoin and Shiba Inu captured global attention, with Shiba Inu making millionaires out of early adopters. Meanwhile, Bitcoin dominance fell from 70% to 38%, while altcoins collectively doubled their market share—from 30% to 62%.
This cycle was also fueled by low interest rates and increased retail participation via platforms like Robinhood and Coinbase.
How to Spot the Start of a New Altcoin Season
Timing is critical. Recognizing early signals can position investors ahead of major price movements.
1. Increase in Altcoin Dominance
When altcoins collectively gain market share relative to Bitcoin, it signals shifting investor sentiment. Currently, Bitcoin holds around 50.15% of total market cap (per CoinGecko). A sustained drop below 45% often precedes or confirms an ongoing alt season.
2. Rising Trading Volumes
A spike in trading volume across altcoins—especially on major pairs like ETH/USDT or SOL/USDT—indicates growing interest. High liquidity enables faster price movements and attracts more traders.
Tether (USDT) remains the most traded cryptocurrency due to its role as a stable intermediary, but rising volumes in altcoin pairs are a strong bullish signal.
3. Altcoin Season Index Reaches Threshold
The Altcoin Season Index measures whether at least 75% of the top 50 altcoins are outperforming Bitcoin. A reading above 75% is widely accepted as confirmation of alt season.
As of early 2025, the index stands at 69%, suggesting we're approaching—but not yet in—full alt season.
4. Price Breakouts Across Major Altcoins
Technical breakouts above key resistance levels are powerful indicators. For instance, Solana recently broke above $200—a psychological and technical milestone—though it remains below its all-time high of $260.
👉 Learn how technical analysis can improve your trading decisions.
Such momentum often cascades across other mid-cap and small-cap altcoins, creating a ripple effect throughout the market.
Is It Altcoin Season in 2025?
Not quite—yet. Despite strong performances from tokens like Solana, WIF, and PEPE, several factors suggest we’re still in transition:
- Bitcoin maintains over 50% market dominance
- 24-hour trading volume for BTC accounts for ~37% of total market volume
- The Altcoin Season Index remains at 69%, short of the 75% threshold
While conditions are favorable, true alt season requires broader participation and sustained momentum across dozens of projects—not just a few standout performers.
When Will the Next Altcoin Season Begin?
Predicting exact timing is challenging due to crypto’s inherent volatility. However, several catalysts could accelerate the shift:
- U.S. Federal Reserve rate cuts: Lower interest rates historically increase appetite for risk assets like cryptocurrencies.
- Institutional adoption of Ethereum ETFs: Expected approvals could unlock massive inflows into smart contract platforms.
- Technological breakthroughs: Scalability upgrades, Layer-2 expansions, and real-world asset tokenization may drive renewed interest.
With expectations of multiple rate cuts in 2025, many analysts believe the next alt season is closer than ever.
How to Prepare for Altcoin Season
Success during alt season requires preparation, discipline, and strategic planning.
Research and Diversify Your Portfolio
Focus on projects with strong fundamentals—real use cases, active development teams, and growing ecosystems. Diversify across sectors like DeFi, AI-blockchain integration, gaming, and infrastructure.
Avoid putting all capital into highly speculative meme coins without understanding the risks.
Time Your Entries and Exits Strategically
Use technical tools such as:
- Support and resistance levels
- Relative Strength Index (RSI)
- Moving averages
These help identify optimal entry points and prevent FOMO-driven buys at peak prices.
Consider Early Participation via Presales
Investing in reputable presales can offer early access at lower prices. Projects launching with transparent roadmaps and utility may deliver substantial long-term value.
However, always verify legitimacy to avoid scams.
Risks to Be Aware Of
Alt seasons bring opportunity—but also danger.
Extreme Volatility
Prices can swing wildly in hours. Proper risk management—like position sizing and stop-loss orders—is essential.
Pump-and-Dump Schemes
Some projects artificially inflate prices before dumping on retail investors. Be cautious of tokens promoted aggressively on social media without fundamentals.
👉 Stay ahead with real-time data and secure trading tools.
Overvalued Entries Due to FOMO
Buying at euphoric highs often leads to losses when corrections hit—sometimes dropping 30–40%. Stick to your strategy.
Frequently Asked Questions
Is it currently altcoin season?
No—not yet. The Altcoin Season Index needs to reach 75%, meaning most top altcoins must outperform Bitcoin. We're close at 69%, but not there.
How long does altcoin season last?
Typically several weeks to months, depending on market conditions, macro trends, and investor sentiment.
What was the last major altcoin season?
The most recent surge occurred in late 2023 into early 2024, driven by excitement around ETF approvals and strong performances from Solana, WIF, and PEPE.
What triggers altcoin season?
Common triggers include declining Bitcoin dominance, rising investor confidence, favorable macroeconomic conditions (like rate cuts), and increased innovation in blockchain technology.
Can I predict when alt season will start?
While exact timing is uncertain, monitoring metrics like the Altcoin Season Index, trading volumes, and on-chain data improves predictive accuracy.
Are all altcoins profitable during alt season?
No. Only projects with strong fundamentals or viral appeal tend to outperform. Many underperform or lose value despite overall market enthusiasm.
Core Keywords: altcoin season, Bitcoin dominance, cryptocurrency market cycle, altcoin season index, Solana price breakout, crypto investment strategy, trading volume surge