Has the 2025 altcoin season begun? Analysts, traders, and project developers have conflicting theories. Some view the rise of DeFi tokens and memecoins as the initial indications of an altcoin season. Others argue that, as long as Bitcoin’s dominance remains high, it’s premature to discuss a complete altcoin cycle.

Historically, every altcoin season has been accompanied by a surge in liquidity and second- and third-tier tokens, as well as increased activity among retail investors. However, the market is much more complex in 2025. Institutions are more active, regulators are stricter, and retail interest is spread across Layer-2 networks, AI tokens, and the gaming segment. Forecasts vary. Some experts are confident that the altcoin season and growth in the cryptocurrency market will begin after Bitcoin’s dominance drops below 45%. Others believe growing interest in the Ethereum ecosystem and emerging market trends already indicate the start of a cycle. Nevertheless, the question remains: When will the altcoin season begin? This uncertainty is precisely what makes 2025 one of the most intriguing years for the crypto market in recent memory.

What is altcoin season?

It is the period when most altcoins grow faster than Bitcoin. While Bitcoin typically sets the direction for the entire market, investor attention shifts during these phases.

The main characteristic of the altcoin season is the redistribution of liquidity. Once Bitcoin has shown its main growth and its price has stabilized, traders seek higher returns in other assets. This creates an opportunity for altcoins, which can yield returns of tens or even hundreds of percent in a short period of time. 

Historical Examples of Altcoin Seasons

The concept of “altcoin seasons” emerged in 2017 when Ethereum, Ripple, and Litecoin tokens increased tenfold during the ICO boom. Another striking example occurred at the beginning of 2021, when Bitcoin reached a new all-time high and DeFi projects (such as Uniswap, Aave, and Synthetix) and NFT platform tokens surged in price.

Each of these cycles was accompanied by increased market capitalization, speculative excitement, and subsequent corrections. Experienced analysts therefore warn that the difference between an altcoin season and a bull market is that altcoins often experience short-term gains and are more volatile than Bitcoin itself.

Signs of the Start of the 2025 Altcoin Season

How to Identify the Altcoin Season? The market is already showing signs that it may be approaching.

Bitcoin Dominance Dynamics

The first and most well-known signal is a decline in Bitcoin’s share of the total market capitalization. Historically, the altcoin season begins when its dominance falls below 45%. In spring 2025, this figure fluctuated between 46% and 48%, dropping even lower in some weeks, which indicates a gradual redistribution of liquidity toward altcoins.

Altcoin Capitalization Growth

Since the beginning of the year, the total capitalization of “non-BTC assets” has grown by almost 35%. This growth is particularly noticeable in the DeFi, AI tokens, and Layer-2 solutions sectors. According to CoinMarketCap, Ethereum gained more than 40% in the first quarter of 2025, Solana gained over 60%, and TON and NEAR entered the top ten fastest-growing assets.

Increased Trader and Investor Activity

Major exchanges have recorded an increase in trading volume for altcoin pairs. Binance and OKX report that the number of spot trades for the top 20 tokens (excluding BTC) has grown nearly 50% in two months. Retail audiences are also returning. There are noticeably more discussions about the altcoin season and searches for the “next Ethereum” — a coin capable of disrupting the market and growing exponentially — on X and Telegram.

The emergence of new promising projects

In 2025, investors’ attention will focus on ecosystems where Web3, AI, and gamification intersect. Projects such as Bittensor, Render, and Arweave are already demonstrating strong audience interest and decent trading volumes, which could confirm the imminent arrival of the altcoin season.

Expectations for the Altcoin Season

Many analysts agree that, should the altcoin season begin, it could be the most volatile in recent years. Growth will not be distributed across the entire market but rather across specific sectors, from AI tokens to layer-two solutions and web three gaming ecosystems.

Potential Growth Leaders

According to analysts at CoinDesk, BeInCrypto, and Messari, growth will be concentrated in four key areas:

1. Layer-1 and Layer-2 blockchains. Solana (SOL) remains a favorite in this category due to its high speed and rapidly developing DeFi and NFT ecosystems. Cardano (ADA) is strengthening its position thanks to its scientific approach and steady network growth. NEAR Protocol (NEAR) is experiencing increased user activity and is becoming a platform for mass-market Web3 applications. Meanwhile, Cosmos (ATOM) is reinforcing the concept of interoperability by linking different blockchains into a single space.
2. DeFi and asset tokenization. Binance Coin (BNB) remains important as the core of the largest exchange ecosystem. After its decisive victory in the battle with the SEC, XRP is once again being perceived as a tool for international payments. ONDO Finance (ONDO) has become a symbol of the trend toward the securitization and tokenization of real-world assets (RWAs), offering institutional blockchain-based solutions.
3. AI and Web3 technologies. Render (RNDR) is one of the most widely discussed assets, providing decentralized GPU power for AI rendering. Bittensor (TAO) creates an open neural network economy in which participants train models and receive tokens as rewards. Grasso (GRASS), a lesser-known but widely discussed asset, uses data to train AI, making it an interesting early-stage speculative asset.
4. Meme Sector and High-Risk Niches. LILPEPE and other emerging memecoins are part of speculative capital. Analysts note that these assets often become emotional catalysts in the later stages of altcoin seasons, increasing volatility.

Price movement scenarios

Most altcoin forecasts for the 2025 season are cautiously optimistic. For instance, BeInCrypto analytics projects a potential 50% to 200% increase in the prices of key assets for the season, assuming Bitcoin remains stable. If BTC consolidates, liquidity will likely flow into altcoins. However, growth could stall if the flagship cryptocurrency experiences a sharp correction. Therefore, expectations for altcoin growth in 2025 depend largely on Bitcoin’s performance.

The impact on the overall crypto market

Under a favorable scenario, the impact of the altcoin season on Bitcoin will be moderate. BTC will retain its status as “digital gold,” and altcoins will gain short-term growth momentum. However, some analysts believe that the new cycle could shift the market’s focus from Bitcoin to ecosystem tokens and protocols, creating a more diversified market structure.

Barriers and Risks

• Regulatory Restrictions. The main barrier to the altcoin season is the uncertainty surrounding the regulation of cryptocurrencies. Following the tightening of controls in the U.S. and Europe, many projects risk being subject to disclosure requirements, licensing, or even trading freezes. In the aggressor country of russia and several Asian countries, authorities are using cryptocurrency as part of domestic policy, which also reduces trust in the market.
• Volatility and Speculation. An altcoin season is characterized by a surge in speculative activity. Short-term price spikes and manipulation, especially in illiquid tokens, can wipe out the profits of unprepared investors. The market is even more volatile due to increased sensitivity to macroeconomic news: any Fed decision or interest rate change can trigger a wave of selling.
• Technological Issues of Projects. Rapid growth often masks technical vulnerabilities. Bugs in smart contracts, hacker attacks, and security breaches remain real threats. Major hacks of the Ethereum and Solana protocols were recorded in 2024–2025, forcing investors to be more careful when choosing tokens.
• The threat of an altcoin bubble remains. History shows that every explosive rally ends in a correction. Some analysts are warning that an overheated market, especially in the AI and memecoin niches, could lead to a bubble. If prices become detached from the projects’ intrinsic value, psychological factors of the altcoin season will work against investors, causing greed to give way to panic.

Investing Strategies for the Altcoin Season

In order to maximize opportunities in the 2025 altcoin season, investors must apply proven approaches. The main goal is to balance risk and return because the altcoin market typically moves faster and more unpredictably than the Bitcoin market. 

Portfolio diversification 

One key principle is distributing funds across various sectors: Layer-1 and Layer-2 blockchains, decentralized finance (DeFi), artificial intelligence (AI) tokens, and gaming ecosystems. This reduces the impact of individual project declines and allows for the growth of promising tokens. Experts note that the best strategies during the altcoin season inсlude a combination of top- and mid-cap altcoins to achieve stability and growth potential.

Selecting Promising Tokens Using Analytics

Long-term investments should be based on altcoin analytics for the 2025 season, as well as an assessment of project fundamentals, such as technological infrastructure, token adoption, and institutional investor support. For short- and medium-term decisions, it is important to monitor altcoin season indicators, such as declining BTC dominance, increasing altcoin trading volume, the emergence of new, promising projects, and social media activity. Technical analysis helps identify entry and exit points, and fundamental analysis helps understand a token’s development prospects. Using these methods significantly reduces the risks of the altcoin season for investors.

The Future of Altcoins After 2025

Experts predict that the future of altcoins after 2025 will depend on three key factors: institutional investment, technological progress, and the consolidation of current project success.

The possibility of consolidating success

Tokens that demonstrate stable growth and real-world applications have a chance to gain a foothold in the market. Ethereum and Solana could become the foundation of long-term ecosystems. Projects like Render and Bittensor will continue to develop as the AI and Web3 sectors grow. This allows investors to profit in the short term and hold assets with fundamental value.

The Role of Institutional Investments

Institutional investors are gradually establishing new rules: altcoin ETFs, investments in DeFi protocols, and AI projects. Their participation increases market liquidity and stability. Most analysts believe institutions will directly influence future growth cycles by shifting the market’s focus from Bitcoin to promising tokens. Therefore, it can be said that institutional investors and the altcoin season are inextricably linked.

Long-Term Market Development Forecasts

According to experts at CoinDesk and BeInCrypto, the altcoin market will mature after 2025. The share of purely speculative projects will decline, and attention will shift to tokens with real use cases and active ecosystems. Thus, the prospects for altcoins after 2025 remain promising, but success will depend on technological sustainability, institutional participation, and sound risk management.

FAQ — Frequently Asked Questions

• What is an altcoin season, and how does it differ from general crypto market growth?

An altcoin season is a period when altcoins grow faster than Bitcoin. The main difference from a typical bull market is that liquidity is redistributed from Bitcoin to other tokens.

• What signs indicate the start of an altcoin season in 2025?

Key indicators inсlude declining Bitcoin dominance, a growing altcoin market cap, increased trader and investor activity, and the emergence of new, promising projects in DeFi, AI, and Web3.

• What barriers could hinder altcoin growth in this cycle?

The main barriers to an altcoin season inсlude regulatory restrictions, high volatility, technical project issues, and the threat of a speculative bubble.

• Which altcoins could become the leaders of the new season?

Analysts highlight Ethereum, Solana, Toncoin, NEAR, Render, and Bittensor as altcoins with growth potential in 2025. Additionally, DeFi tokens and promising Layer-2 projects could demonstrate substantial growth.

Conclusion

Signs of the beginning of the altcoin season are already visible: declining Bitcoin dominance, a growing altcoin market cap, and high investor activity. Analysts highlight Ethereum, Solana, XRP, Toncoin, NEAR, Render, and Bittensor as projects with the greatest potential. These could become the top altcoins for investment in 2025.

While the outlook for the 2025 altcoin season in the crypto market is promising, investors’ success will depend on their ability to balance potential returns with risks.

Thank you for your attention. Invest safely and profitably!

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