Altseason wen?
That’s the question crypto market stakeholders are asking in anticipation of a lush season where altcoin investors will harvest the rewards of their patience as attention and capital flow from Bitcoin into other cryptocurrencies like Solana and XRP.
Online interest in altcoins is rising. Data from Google Trends shows search interest for altcoins overtook Bitcoin in July for the first time since November 2024. But even with retail enthusiasm stirring again, some analysts say the market isn’t ready for altcoins to explode.
“Until this changes, altcoin rallies are likely to remain short-lived and vulnerable to broader market pullbacks.”
Sharper price slumps
The flows shifting towards smaller cryptocurrencies tend to happen after a period of Bitcoin dominance, such as the one seen this summer, where the top cryptocurrency’s price has reached a record $122,000.
Yet, Bitfinex analysts said sharper price slumps for so-called high-beta tokens like the major altcoins point to signs that investors are still cautious and that traders are waiting for the next major narrative spark.
All of that adds to the high-stakes nature of altseason, especially for retail investors. With institutions piling into Bitcoin via exchange-traded funds and corporate treasuries, smaller market participants are looking for their vehicle for outsized gains.
But for some analysts, even when altseason comes, it won’t be the case of the rising tide lifting all boats.
Peter Chung, head of research at Presto Labs, a crypto trading firm, said that several altcoins posting massive price rallies this time around is “unlikely.”
“While a $50 million market-cap token rocketing to $5 billion valuation may still occur sporadically, such events will be exceptions rather than the norm,” Chung wrote in a report.
