What is altseason, and why is everyone anticipating it

Altseason Defined

Altseason (from “Altcoin Season”) is a period in the cryptocurrency market when altcoins (all cryptocurrencies except Bitcoin) surge in value, often outpacing Bitcoin’s price performance. During this time, traders and investors actively shift from BTC to higher-risk assets in pursuit of greater returns. Altseason is marked by increased trading volumes, a rise in new projects, and growing interest in innovative blockchain technologies.

Why Is Altseason So Highly Anticipated?

Altseason isn’t just a fleeting trend—it’s one of the most anticipated phases of a bull market, drawing attention from both experienced investors and newcomers. Several key factors drive this heightened interest.

Opportunity for Significant Capital Growth

During altseason, even lesser-known coins can deliver impressive returns of 300%, 500%, or more in a relatively short period. The 2017–2018 cycle is a standout example, when projects like Ripple (XRP), Litecoin (LTC), and Ethereum (ETH) saw exponential gains. Investors who made strategic picks and timed their moves well could substantially grow their capital in a short window. This powerful incentive motivates participants eager to maximize their profits.

Emergence of Innovative Technologies

Altcoins often introduce groundbreaking technology and concepts to the blockchain sector. Each altseason brings fresh trends and ideas to the market:

• DeFi (Decentralized Finance) — platforms enabling financial operations without intermediaries
• NFTs (Non-Fungible Tokens) — unique digital assets representing ownership of various items
• GameFi and Metaverse — gaming ecosystems with integrated economies
• L2 Solutions — technologies that scale blockchain networks and boost throughput
• AI Tokens — projects focused on artificial intelligence and machine learning

Early investors gain access to promising projects at the initial stages, which can translate to substantial returns.

The Psychology and FOMO Effect

When market participants see a lesser-known token soar in price, it triggers a powerful psychological response—FOMO (Fear Of Missing Out). This drives a surge of capital into altcoins, especially from newcomers eager not to miss the next big opportunity, much like Ethereum’s rise. This momentum amplifies volatility and accelerates altcoin price increases.

Historical Cycle Patterns

Market analysis reveals a consistent trend: altseason typically starts after a major Bitcoin rally, once Bitcoin’s price stabilizes or enters a correction. Investors then realize profits in BTC and rotate capital into altcoins, seeking continued upside in other assets. This capital rotation is a key driver that kicks off altseason.

Notable Altseason Examples

The 2017–2018 Altseason

This was the first major altseason in crypto history. Ethereum posted extraordinary gains, becoming the second-largest crypto by market cap. Ripple (XRP) delivered striking price growth, while NEM, NEO, IOTA, and others provided investors with multiple returns. This period also saw the ICO (Initial Coin Offering) boom, where the market was introduced to concepts like smart contracts, tokenomics, and decentralized applications.

The 2021 Altseason

The next significant altseason was defined by the rise of DeFi and NFTs. Decentralized exchanges and lending protocols were the main growth engines. Solana (SOL) achieved notable price appreciation and drew interest from both investors and developers. Axie Infinity (AXS) led the GameFi sector, letting users earn through gameplay. This cycle also sparked the metaverse trend and the “Play-to-Earn” model, opening up a new branch of the crypto economy.

Key Signals That Altseason Has Started

The crypto community tracks several vital metrics to identify the start of altseason. The main indicator is Bitcoin Dominance (Bitcoin Dominance)—the percentage of Bitcoin’s market cap in relation to the total crypto market cap. When this figure falls, it signals capital is shifting from Bitcoin to altcoins. Other signs include rising altcoin trading volumes, more new tokens trending on major crypto ranking sites, and increased media coverage of crypto projects. Experienced traders and analysts watch these metrics to forecast altseason and strategize their investments.

Conclusions and Recommendations

Altseason offers substantial opportunities, but it also comes with high risk and volatility. It’s a rare occurrence, but each cycle is a major event for the crypto community. Experienced participants prepare well in advance: they build diversified altcoin portfolios, monitor key metrics, manage risk, and adhere to disciplined investment plans. Altseason often catches newcomers off guard—they learn on the fly, sometimes taking losses, sometimes achieving impressive gains. Regardless of experience, success in altseason requires discipline, analysis, and readiness for crypto market volatility.

FAQ

What Is Altseason (Altcoin Season) and How Does It Relate to the Bitcoin Cycle?

Altseason is a period when altcoins outperform Bitcoin. It typically follows a Bitcoin price rally, as capital moves into altcoins. Bitcoin dominance is a key signal: when it drops, it points to the onset of altseason and growth in the altcoin sector.

How Much Do Altcoins Typically Rise During Altseason? What Have Previous Altseasons Looked Like?

Altcoins often double or triple in price during altseason. Historically, altseasons have delivered substantial returns but with high volatility, rapid market swings, and surging trading activity.

How Can You Tell When Altseason Is Starting? What Key Indicators Should You Track?

The main indicator is when more than 75% of altcoins outperform Bitcoin. Also, monitor Bitcoin dominance: a significant decline signals the start of altseason and rising trading volumes in alternative assets.

What Risks Should You Consider When Investing in Altcoins During Altseason?

During altseason, altcoins face high volatility and are more prone to market manipulation. Many have low liquidity and thin trading volumes. Diversification and strict risk management are essential to help limit losses.

How Does Altseason Differ From a Bear Market?

Altseason is when altcoins outperform Bitcoin due to market rotation and investor sentiment. In a bear market, Bitcoin dominates as investors seek safety, causing altcoins to stagnate. These represent opposite market trends and participant behaviors.

Why Do Investors Look Forward to Altseason?

Investors anticipate altseason because altcoin rallies usually follow Bitcoin’s strength. During this window, trading volumes in alternative assets surge, creating opportunities for profitable trades based on historical patterns.

Which Types of Altcoins Perform Best During Altseason?

Projects with strong community support, low market caps, and innovative technology tend to perform best during altseason. These are typically newer tokens in DeFi, NFT, and Layer 2 sectors. They often deliver multiple times the returns of Bitcoin.

How Long Does Altseason Usually Last?

Altseason generally lasts four to eight weeks on average. Some shorter cycles may span two to three weeks. The exact length depends on market conditions and trading activity.

Will There Be an Altseason in 2024? What Signals Point to Its Arrival?

The 2024 altseason is already underway. Key signals include: declining Bitcoin dominance, rising altcoin trading volumes, recovering small caps, positive blockchain ecosystem news, and growing institutional interest in altcoins—all indicating the start of an active altseason.