Signs That Altseason Has Started
Altseason is one of the most exciting times in crypto. Bitcoin usually dominates early in a bull market, but eventually, capital flows into altcoins, thus driving rapid gains across the board. Recognizing this shift early can help investors maximize opportunities while managing risks.
Key Takeaways
- Altseason begins when altcoins consistently outperform Bitcoin over several weeks.
- Indicators like the Altcoin Season Index, trading volume spikes, and strong market sentiment help confirm the trend.
- Knowing when altseason starts can guide better investment timing and risk management.
What is Altseason?
Altseason, also called alt coin season, happens when the majority of altcoins outperform Bitcoin over a sustained period. Traders watch for this phase because altcoins can deliver much higher returns than BTC during these runs. The Altcoin Season Index tracks this trend. When more than 75% of the top 50 coins outperform Bitcoin over 90 days, it signals a strong altcoin season. A reading above 60 often indicates the early stages.
A Brief History of Altseason
The term altseason began to take shape around 2016, as crypto traders noticed clusters of altcoins starting to outperform Bitcoin. This trend crystallized into mainstream awareness during the ICO boom between 2017 and 2018. This instance was when investor excitement around Ethereum-based token launches caused altcoins to dominate charts and Bitcoin’s market share to plummet.
Instances When Altcoins Outperformed Bitcoin
- ICO Boom (2017): The initial coin offering exploded in popularity, raising billions via Ethereum’s ERC-20 standard as investors chased new token launches.
- Year of DeFi (2020): Yield farming and DeFi protocols like Aave had a massive increase in total value locked (TVL) from $58 million in early June to over $1 billion by September.
- NFT Hype (2021): NFT platforms and their tokens surged in value as mainstream attention grew, with altcoins far outpacing BTC.
- RWA Surge (2023): The tokenized real-world assets (RWA) market reached a significant milestone with the total value surpassing $22 billion while Bitcoin largely held steady.
Why Investors Should Care About Altcoin Season
Altseason isn’t just a crypto buzzword; it’s an opportunity. Here’s why it matters:
- Higher profit potential: Altcoins often deliver faster, larger price swings than Bitcoin.
- Portfolio diversification: Allocating part of your holdings to altcoins can balance your exposure.
- Early mover advantage: Recognizing the start of the altcoin season lets you position before retail hype peaks.
Altseason Core Warning Signs
Before alt coin season officially starts, measurable market shifts tend to appear. These signals help traders position themselves early, but only if they know what to look for.
Bitcoin Dominance Declines
When Bitcoin’s share of total crypto market cap falls quickly, it’s a sign that capital is rotating into altcoins. This often happens when Bitcoin’s price stabilizes after a rally, freeing up investor appetite for higher-risk coins. You can monitor this trend using dominance charts available on sites like TradingView.
Rising Altcoin Volumes
Watch for broad spikes in trading activity across many altcoins and not just a handful of trending tokens. Sustained volume increases signal new money entering the market, often before significant price surges. Large centralized exchanges and decentralized exchanges both reflect this shift.
Positive Market Sentiment
A growing buzz around altcoins often precedes price movement. Look for rising social media mentions, Google Trends data, and forum activity. Platforms like LunarCrush quantify this sentiment, helping investors spot early momentum before charts confirm it.
Altcoin Season Index Above 60
Tools like CMC Altcoin Season Index track whether altcoins are outperforming Bitcoin. A reading above 60 means Bitcoin is no longer the sole driver of market growth. When paired with falling Bitcoin dominance and rising volumes, it’s a strong confirmation that alt season may be approaching.
Top 3 Altcoins to Watch Right Now
Not every coin rallies the same way during altseason. Some projects consistently lead the pack due to strong price performance, market capitalization, liquidity, and long-term value potential. Based on these criteria, here's our top 3 altcoins to watch right now:
- Solana (SOL)
Solana has earned a reputation as one of the fastest and most cost-efficient blockchains. It is capable of handling thousands of transactions per second with minimal fees. This performance continues to attract developers building DeFi platforms, NFT marketplaces, and Web3 gaming projects. The network’s growing number of active users and new launches show that liquidity and community interest remain high. You can also explore other crypto investment opportunities from Solana beyond altcoins, including those listed on Acquire.Fi.
- Ethereum (ETH)
Ethereum still dominates smart contract infrastructure and remains the backbone for most decentralized applications. Upgrades like Layer-2 scaling and liquid staking drive new demand and reduce transaction costs. Institutional adoption, such as ETFs and integrations into major financial products, further cements Ethereum’s place in any market cycle. During altseasons, ETH often sets the pace for other altcoins. It acts as a bellwether for investor confidence in DeFi and Web3 innovation.
- Ripple (XRP)
XRP is designed for fast, low-cost cross-border payments and has been adopted by major financial institutions seeking efficient settlement solutions. Its network can process thousands of transactions per second with minimal fees, making it highly scalable for global payments. Recent legal clarity and renewed interest from institutional investors have boosted confidence in XRP as a strong contender during altseason.
Strategies & Tools to Prepare You for Altseason
Preparation is key to capturing altcoin season gains without taking unnecessary risks. By planning, you can position yourself to ride market trends rather than chase them.
Diversify Your Portfolio
Manage your portfolio by avoiding going all-in on one token. A mix of large-cap, mid-cap, and emerging altcoins reduces exposure to single-coin collapses while keeping upside potential intact. Balancing between safer, established coins and riskier small-cap gems ensures you won’t miss opportunities if a single sector takes off.
Use Automated Tools
AI-driven platforms help optimize trade timing and remove emotional decision-making from investing. Solutions like automated crypto trading bots can monitor the market around the clock. These tools reduce manual stress and catch price moves even when you’re offline.
Explore Private Market Deals
Some high-potential projects are available before they hit major exchanges, often at favorable valuations. Platforms like Acquire.Fi’s OTC and Secondaries marketplace lets investors access exclusive opportunities that aren’t available to the general public. Early exposure to promising altcoins or equity rounds can amplify returns when these projects gain mainstream attention during alt season.
Mistakes to Avoid During Altseason
Altseason excitement often leads to poor decisions:
- Chasing pumps: Buying a coin after it has already surged can leave you holding losses.
- Ignoring Bitcoin trends: If Bitcoin drops sharply, it can pull down altcoins regardless of their strength.
- Skipping risk management: Failing to use stop-losses or diversification leaves portfolios vulnerable to sudden reversals.
Altseason FAQs
1. What triggers altseason?
It usually begins when Bitcoin stabilizes after a rally, freeing capital to flow into altcoins. Strong fundamentals and liquidity support the move.
2. How long does altseason last?
It varies by market cycle. Some altcoin seasons last weeks, while others extend for months during major bull runs.
3. Is altseason guaranteed every cycle?
No. While common in previous bull runs, future market conditions may differ. Always combine multiple indicators before making decisions.
4. Can I predict the exact start of altseason?
No one can pinpoint it perfectly. However, combining technical indicators (BTC dominance charts, ETH/BTC ratio) with on-chain data improves your odds of spotting it early.
5. Is it safer to hold Bitcoin or altcoins during altseason?
Bitcoin is generally less volatile, but altcoins can outperform in percentage gains. A balanced portfolio of both is often recommended to manage risk.
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