Introduction: A brief explainer on what the altcoin bull market is and what are the signs that it is coming? Plus some predictions on what coins may see big price surges during altcoin season.
What is altcoin season?
An altcoin bull market, or "altseason," is a period when cryptocurrencies other than Bitcoin significantly outperform Bitcoin in terms of price growth. It typically occurs after Bitcoin has already experienced a major price surge, and investor profits are rotated from Bitcoin into the more speculative, high-volatility altcoin market.
Signs that an altcoin bull market is starting
Recognizing an impending altcoin bull market involves monitoring a combination of technical, on-chain, and sentiment-based indicators.
Technical and market indicators
Declining Bitcoin Dominance (BTC.D): This is often considered the most important signal. It measures Bitcoin's share of the total crypto market cap. A falling BTC.D suggests that capital is moving out of Bitcoin and into altcoins, which causes altcoins to gain market share.
Rising altcoin market cap: An increasing total market capitalization for altcoins, excluding Bitcoin, shows that new capital is entering the broader market and being distributed among smaller coins.
Increased trading volume: A noticeable surge in trading volume across various altcoins indicates heightened investor interest and buying activity, particularly in smaller-cap tokens.
Price consolidation in Bitcoin: After Bitcoin has had a strong rally, it often enters a period of consolidation. This stabilization allows investors to take profits from their Bitcoin gains and use that capital to invest in altcoins, searching for higher returns.
On-chain and sentiment indicators
Surge in on-chain activity: Increased active wallets, transactions, and developer contributions across altcoin networks are all bullish indicators.
Retail "FOMO" (Fear of Missing Out): Mainstream media coverage and social media hype often increase as the market becomes euphoric. When you start seeing friends and family who have never invested in crypto suddenly become interested, it can signal a market peak.
Popularity of crypto apps: If cryptocurrency exchange and wallet apps are dominating the top app store rankings, it can be a sign that a retail-driven frenzy is at its peak.
Which altcoins are likely to surge
During an altcoin bull market, different categories of altcoins tend to perform well at various stages of the cycle. Performance is heavily driven by prevailing "narratives" or dominant market trends. Historically, the following types of altcoins have experienced surges:
Major, established altcoins
Ethereum (ETH): As the second-largest cryptocurrency, Ethereum often performs well after Bitcoin. In past cycles, its rally was driven by the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs).
Layer-1 blockchains (e.g., Solana, Avalanche): These "Ethereum killers," or alternative smart contract platforms, often attract capital looking for high performance, low costs, and strong ecosystem growth.
DeFi protocols
Decentralized exchanges (DEXs): Protocols that allow for peer-to-peer trading, like Uniswap (UNI), often see huge growth in volume and token value as market activity increases.
Lending protocols: Platforms that facilitate decentralized lending and borrowing, like Aave, see heightened usage and price action during a bull run.
Emerging narratives
Artificial Intelligence (AI) and crypto: In the 2024–2025 period, AI-related tokens have gained traction. Projects that integrate AI technologies to improve security, efficiency, or user experience are attracting interest.
Real-World Assets (RWAs): Tokenizing physical and financial assets is another narrative gaining momentum. Projects focused on bringing real-world assets onto the blockchain are positioned to attract new institutional capital.
Gaming and NFTs: While hype can be intense, a strong crypto bull market can reignite interest in gaming tokens and NFT-related projects.
High-risk, high-reward plays
Meme coins: These highly volatile and speculative assets can experience massive, but often short-lived, price rallies driven almost entirely by social media hype and community sentiment.
Low-cap tokens: Many smaller-cap tokens can multiply in value several times over, but they are also extremely risky and more susceptible to crashes when the market cycle ends.
Last words...
You should of course do your own research and make your own decisions about what to do with your hard earned money.
I am sharing some of my insights with you.
But only you should decide what to do with your money.
Own all your decisions
Own all your sucesses
Own all your failures.
Remember the blame game makes you feel good for a moment
But the learn game makes you rich.
Don't look outward, look inward, improve yourself and your success will follow.
The End
@Shortsegments
Thank you for reading my post
This post was written by Shortsegments, who has been writing about cryptocurrency, the blockchain, digital ledgers, bitcoin, ethereum, and decentralized finance; where digital ledgers and smart contracts meet finance, for seven years. You will find his articles here on his blog Link to his blog.
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