The cryptocurrency market is known for its cycles, and one of the most anticipated and exciting phenomena for traders and investors is the so-called Altcoin Season. This period can generate impressive gains in short timeframes but also carries high risks.
2017: After the Bitcoin rally, Ethereum, Ripple, Litecoin, and other altcoins surged, with gains of 500% to 1,000%, while some smaller projects reached over 20,000% appreciation.
2021: Ethereum broke records, Solana, Cardano, and DeFi tokens exploded, while memecoins like Dogecoin and Shiba Inu dominated the headlines.
2024-2025 (ongoing): Tokens linked to synthetic stablecoins (like Ethena - ENA), artificial intelligence (DeFAI and AI Agents), and Layer 2 of Bitcoin are gaining traction, with the market speculating about a new Altcoin Season.
What is the Altcoin Season?
The Altcoin Season is a period in the crypto market when altcoins (all cryptocurrencies that are not Bitcoin, such as Ethereum, Solana, Avalanche, Ethena, among others) experience appreciation far above that of Bitcoin.
While Bitcoin generally leads the initial bull cycles, it is common for investors to start seeking higher returns in alternative assets at certain points, boosting altcoins.
Why does the Altcoin Season happen?
When Bitcoin hits strong resistances or starts to stabilize (remain steady within a price range), investors seek altcoins to try for higher returns, traders become more willing to bet on less established and lower capitalization assets, and also, with the emergence of new trends (like DeFi, NFTs, memecoins, crypto AI), generates waves of interest in certain sectors of altcoins.
Historically, altcoins shine after a Bitcoin bull cycle when liquidity flows into alternative projects.
1) The Bitcoin Dominance Index starts to fall, showing that the market is rotating capital to other cryptos.
2) Several tokens start to show gains of two or three digits in a few days.
3) Trading volume in altcoins increases significantly.
4) Tokens from specific sectors (such as L2, AI, games) begin to lead the CoinMarketCap.
5) Interest on social media explodes with memes, influencers, and groups discussing altcoins.
The Altcoin Season is a phenomenon that mixes excitement, technology, and speculation in the crypto market. Although it can generate significant profits, it requires preparation, patience, and discipline to avoid falling into the traps of the market's emotional cycle.
Remember: those who survive the Altcoin Season are not the ones who enter first, but those who know when to exit.