The expectations of an altcoin season still clash with the behavior of investors. Data shows altcoins are still seeing selling pressure, with minimal demand from investors.
Altcoin season is nowhere near, despite historical evidence of rallies in June. Currently, BTC dominance is still near peak levels, with no signs of rolling over into other assets. Some of the demand for altcoins is also shifted into short ‘degen seasons’ centered around meme tokens.
The last true altcoin season happened in 2021, when older assets managed to reach new all-time peaks. This time around, an entire array of liquid coins are still drifting sideways, as investors become more selective. Altcoins, excluding Ethereum (ETH), only dominate under 20% of the crypto market capitalization.
Selling dominates on altcoin markets, showing liquidity has been withdrawn from the wider altcoin market, with the exception of selected assets. | Source: CryptoQuant
Based on CryptoQuant data, altcoins have seen ongoing selling pressure since January 2025. The market is not yet as low as the two-year crypto winter in 2023 and 2024, but there can be no altcoin market until a shift in demand. Competition also comes from another airdrop season and high-profile token sales, where users compete for potential new assets with the chance of rapid gains.
The metric of centralized exchange of buying vs selling shows traders have liquidated $36B from altcoins. Any remaining gains from the late 2024 rally were erased in the first half of 2025, as traders aimed to abandon some of the long-term dead coins.
The mix of VC-backed tokens and new, more liquid trading pairs for memes continued to drive down demand. Additionally, some of the activity switched directly to decentralized pairs, with no waiting times for listings.
Altcoin season index remains near lows
Based on the altcoin season index, it is clearly Bitcoin season. The index is at 20 points, meaning even top 100 coins and tokens are not outperforming. Previously, altcoin seasons lasted for weeks or even months. Currently, altcoin rallies are still happening, though within a much shorter time frame.
In 2025, there have been calls to rethink what constitutes an altcoin season, and if traders would rush into all assets. Some legacy coins had separate rallies, while others recovered based on utility.
In 2025, some of the top performers included Aave (AAVE), trading at $260.22, showing increased demand for DeFi lending.
Other projects like Avalanche (AVAX) show increased activity, but their tokens still trade below the 2024 peak. AVAX returned to $17.95, despite near-record daily activity linked to new Web3 games.
Bitcoin Cash (BCH) is also breaking out of the pack, trading near a three-moth peak at $459.12. The token is seen as risky, potentially erasing its gains. However, BCH buyers bet on an asymmetric rally, as the coin is once again regaining its reputation as an alternative to BTC.
In the longer run, ETF launches are also tracking legacy coins, potentially bringing external demand. Some categories, such as exchange tokens, are often outpacing the market, with outsized rallies in the case of HYPE and WBT.
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