After a period of sharp decline, the crypto market is now showing signs of recovery, with altcoins starting to outperform Bitcoin. Bitcoin's declining dominance is a strong indication that altcoin season may be approaching soon. Several top altcoins such as Ethereum (ETH), XRP, Solana (SOL), and Binance Coin (BNB) are showing significant gains, signaling positive momentum for investors.
List of contents
Altcoin Season Warning: Signs of a Market Shift
1. Altcoin ETF Approval Is Getting Closer
2. Ethereum Upgrades That Boost the Altcoin Ecosystem
3. Top Altcoins Show Strong Performance
4. Historical Trends Show Altcoin Season Cycles
Conclusion
Altcoin Season Warning: Signs of a Market Shift
Several analysts are predicting that altcoin season is just around the corner. Prominent analyst Ted has stated that the altcoin surge in 2024 is just a warm-up for a major record-breaking altseason in 2025. He highlights several factors that could be key drivers, including potential altcoin ETF approvals, Ethereum network upgrades, and Ethereum ETF staking features.
Support for Ted’s view comes from analyst CryptoGoos who stated that historical patterns show altcoins experiencing major spikes in 2017 and 2021. This trend is expected to repeat itself in 2025. Meanwhile, analyst Shib Spain highlighted that major altcoin seasons typically occur in February, and this trend is likely to repeat itself.
So, what are the main factors that support this altcoin season? Here are four main reasons:
1. Altcoin ETF Approval Is Getting Closer
Several asset managers have submitted proposals to launch altcoin ETFs and are currently awaiting regulatory approval. Some of the altcoins included in the proposed ETFs include XRP, Solana, Litecoin, Dogecoin, and Cardano.
According to Bloomberg analysts Eric Balchunas and James Seyffart, the chances of Litecoin ETF approval are 90%, making it the most likely to get the green light from regulators. Other ETFs such as Dogecoin, Solana, and XRP also have high chances with probability levels of 75%, 70%, and 65%, respectively.
Additionally, with governments becoming more supportive of crypto assets, the chances of altcoin ETF approval are increasing. This positive sentiment is contributing to expectations that an altcoin season is imminent.
2. Ethereum Upgrades That Boost the Altcoin Ecosystem
Ethereum, as the leader of altcoins, continues to innovate to strengthen its ecosystem. Recently, Ethereum announced the Pectra upgrade which is scheduled to be tested on February 24th on the Holesky testnet, March 5th on Sepolia, and the mainnet release on April 8th.
Additionally, the New York Stock Exchange (NYSE) has filed a proposal to introduce staking features in an Ethereum spot ETF via Grayscale and is awaiting approval from the SEC. This move further strengthens expectations that the altcoin season will gain more momentum in the coming months.
3. Top Altcoins Show Strong Performance
Major altcoins continue to show strength and bullish trends despite the volatile crypto market. Ethereum is currently trading at $2,690, up 2.06% in the past week. XRP has seen a significant surge of 12% in the past seven days. While Solana has seen a slight decline, Binance Coin (BNB) has continued to see growth of over 5% in the past week.
The positive performance of these major altcoins is an indicator that market sentiment is shifting in a positive direction, which has the potential to trigger an altcoin surge in the near future.
4. Historical Trends Show Altcoin Season Cycles
Looking at historical patterns, altcoins tend to experience big spikes after Bitcoin reaches its cycle peak. As was the case in 2017 and 2021, altcoin spikes occurred after Bitcoin's bullish phase reached its peak.
Market analysts see this pattern playing out again in the coming months, with many predicting that a major altseason will begin in early 2025. The fundamental factors supporting the altcoin ecosystem currently further strengthen the likelihood of a similar pattern occurring.
Conclusion
The altcoin season is not just speculation, but is supported by various strong fundamental factors. With the potential approval of altcoin ETFs, the improvement of the Ethereum ecosystem, the positive performance of major altcoins, and the supporting historical trends, the altcoin season seems to be just a matter of time. For investors and market players, this momentum can be a great opportunity to gain profits in the ever-growing crypto world.