Altcoin season refers to a period when alternative cryptocurrencies, known as altcoins, outperform Bitcoin in market performance.
This phenomenon typically arises during bullish market cycles, where Bitcoin’s price either stabilises after significant growth or shows slower momentum. Investors often shift focus to altcoins during such times, seeking higher returns from smaller-cap cryptocurrencies.
Key factors contributing to altcoin seasons include new technology launches, strong community support, impactful partnerships, and increased market confidence.
As Bitcoin’s dominance diminishes, liquidity flows into altcoins, driving price surges. Social media speculation and trending projects further fuel this phenomenon, creating waves of interest in altcoins.
In 2025, the conditions for the altcoin season remain intriguing but complex. Historically, these periods followed Bitcoin’s bullish performance, with smaller cryptocurrencies gaining traction as investors diversified their portfolios.
Market confidence and the introduction of innovative technologies or partnerships often triggered these rallies.
However, as Bitcoin’s dominance decreases, the distribution of liquidity among an ever-growing pool of altcoins raises concerns about the sustainability of future altcoin seasons.
Oversupply Challenges and Market Dilution
The debate around whether the altcoin season in 2025 will mirror past cycles has intensified. Analysts are increasingly questioning the likelihood of another prolonged altcoin rally due to the sheer volume of tokens now flooding the market.
During the 2017-2018 bull run, altcoin seasons were characterised by explosive growth, with coins like Ethereum (ETH), XRP, and Litecoin achieving record highs. In contrast, today’s market is vastly different, largely due to oversupply.
Crypto analyst Ali Martinez highlights this stark contrast, noting that the number of altcoins has ballooned from fewer than 3,000 in 2017-2018 to over 36.4 million in 2025, as reported by Dune Analytics.
Martinez argues that this oversupply makes it increasingly difficult for altcoins to sustain meaningful rallies, let alone spark a comprehensive altcoin season. Economist Alex Krüger echoes these concerns, pointing out that the overwhelming supply of tokens far exceeds current demand.
According to Krüger, the constant influx of new tokens dilutes the market, making any potential altcoin rally short-lived, lasting only a few days or weeks. He likens the challenge of finding quality altcoins to stock picking in an overcrowded market.
Meanwhile, trader Ash Crypto criticises the influx of low-quality tokens, particularly memecoins, which have become a dominant force in the altcoin space. Ash notes that exchanges often prioritise these tokens to drive trading volume and user engagement.
However, this focus on short-term gains has long-term consequences for market stability. “People buy these memes, lose 80% of their investment in a week, and then quit,” Ash remarked, highlighting the damaging impact of speculative trading.
Ki Young Ju, CEO of CryptoQuant, provides a blunt assessment, suggesting that only altcoins with strong use cases and compelling narratives are likely to thrive in this saturated market.
With Bitcoin’s market capitalisation currently at $2.07 trillion, which is double its value compared to 2021, and the altcoin market cap sitting at $1.6 trillion, it is evident that the altcoin landscape faces unprecedented challenges.
Notably, the altcoin market cap has yet to reclaim its all-time high of $1.9 trillion, recorded in late 2024.
Can Utility-Focused Altcoins Lead the Charge?
Despite the oversupply and dilution concerns, not all analysts are pessimistic about the future of altcoins.
Crypto analyst Michaël van de Poppe adopts a more optimistic perspective, emphasising the potential for utility-focused altcoins to outperform.
Van de Poppe believes that “real utility coins”—those with tangible use cases—could attract institutional interest and carve out significant market share.
Van de Poppe predicts that Ethereum (ETH) could lead what he describes as “the most hated rally of 2025.”
He suggests that projects solving real-world problems or securing adoption from major corporations will stand out amidst the clutter.
For instance, blockchain platforms designed for supply chain verification and management represent practical use cases that could capture investor attention and drive long-term value.
While some analysts remain cautious, the narrative around utility-focused projects offers a glimmer of hope for the altcoin market.
As institutions increasingly explore blockchain technology, projects with well-defined value propositions may gain a competitive edge. This shift could help counterbalance the challenges posed by market oversupply and speculative trading.
Conclusion
Altcoin season in 2025 presents a mixed outlook. On one hand, the proliferation of tokens and the rise of speculative trading have created significant barriers to sustained altcoin rallies.
Analysts like Ali Martinez and Alex Krüger warn that the sheer number of tokens dilutes market demand, making it harder for altcoins to achieve lasting success.
On the other hand, utility-driven projects with strong narratives could still shine, especially as institutional interest grows.
Ultimately, the future of altcoin season will depend on the market’s ability to adapt to these new dynamics. Whether through innovative technologies, real-world applications, or increased investor education, the path forward for altcoins remains both challenging and full of potential.