The crypto market has always been haunted by one question: When will altcoins shine? And according to Jamie Coutts – Senior Cryptocurrency Analyst at Real Vision – the altcoin season may have begun, or at least is in the early stages of kicking off.
Has the true altcoin season begun?
In a recent interview with Milk Road, Jamie Coutts shared his perspective on when the market might witness a true altcoin season – a period when altcoins outperform Bitcoin in terms of price gains. While acknowledging that it is very difficult to pinpoint the exact start time, Coutts shared several signals indicating that the market has begun to recognize the first signs.
Specifically, he cited an indicator that he closely monitors. This indicator compares the performance of 200 top tokens (equally weighted) with a traditional index using market capitalization weighting. According to Coutts, this indicator has just reached a level comparable to that at the end of 2020, before altcoins entered a strong growth cycle lasting from 6 to 12 months.
I think we are already in that phase. We are witnessing the very earliest beginnings.
How is this year's altcoin season different?
However, Coutts also emphasizes that this altcoin cycle will not resemble the strong speculative price surges of previous years. In past cycles, almost any token could experience a strong price 'pump' regardless of quality. But currently, the market is showing clear differentiation, meaning not all altcoins are rising together.
Coutts believes that the most sustainable profits in this cycle will come from projects with solid foundations, practical applications, and genuine community use. Tokens that come with a growing ecosystem or have clear use cases will likely maintain their upward momentum.
How long could it last?
Based on recent market models, Coutts stated that the periods when altcoins outperform usually last about 3 to 6 months. However, he warns that the upcoming growth will not be a 'rising tide lifts all boats' situation, but will be selective – only certain altcoins with solid foundations will have the potential to rise.
In summary, according to Jamie Coutts, if investors are still waiting for a true altcoin season, that moment may have quietly begun. However, in this new cycle, only altcoins with real value and sustainable foundations will have the potential to break out, rather than those tokens that are merely driven by trends.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.