According to cryptocurrency traders and investors, the altcoin season (a period when alternative cryptocurrencies outperform the leading asset Bitcoin) is expected to arrive soon. New market data appears to support their view, suggesting that Ethereum is approaching a bottom, and several major altcoins are showing similar positive signals.
According to data from the on-chain analysis platform Cryptoquant, the relative price of the second-largest cryptocurrency (compared to Bitcoin) may have bottomed out. CryptoQuant stated that this development is considered favorable for the altcoin market, as it may 'indicate the beginning of the altcoin season.'
Major altcoins show signs of recovery
The ETH/BTC price ratio surged by 38% in the past week. Previously, this ratio had dropped to its lowest level since January 2020. Historical data indicates that this level of ratio suggests ETH has bottomed out and has surpassed better-performing altcoins.
Other mainstream altcoins also exhibit similar trends. The exchange rate of Ripple to Bitcoin has been consolidating near multi-year lows, and as institutional interest in Ripple's payment solutions continues to grow, Ripple also shows signs of accumulation. Recent clarity regarding Ripple's regulatory status makes it a potential breakout candidate in this altcoin cycle.
Solana has demonstrated exceptional resilience, maintaining strong ecosystem activity despite broader market pressures. The blockchain's high performance and evolving DeFi ecosystem have attracted a large number of developers, laying the groundwork for potential outstanding performance during the altcoin season.
Meanwhile, Cardano is quietly building momentum through steady development progress and upcoming network upgrades. The gradual development approach of this smart contract platform has garnered a loyal community. Technical indicators suggest that as Ethereum recovers, ADA may experience a significant breakthrough.
Even meme coins are starting to show early signs of participation in the altcoin recovery. Despite Shiba Inu's speculative nature, it has maintained strong community engagement and continues to develop practical features through the expansion of its ecosystem (including the ShibaSwap DEX and upcoming Layer 2 solutions).
Technical analysis confirms bottom formation
Based on current market trends, the analysis excerpt from CryptoQuant is as follows:
"According to the ETH/BTC MVRV indicator, ETH recently entered an extremely undervalued zone relative to Bitcoin, the first time since 2019. Historically, following similar situations in 2017, 2018, and 2019, ETH has significantly outperformed Bitcoin, indicating strong mean-reversion potential for ETH."
This pattern is not limited to Ethereum. XRP's technical indicators show its oversold condition is similar to previous significant rallies, while Solana's on-chain metrics indicate that, despite price suppression, the network continues to grow. Cardano's development activity remains robust, indicating strong fundamentals, and prices may rise once market sentiment shifts.
It is noteworthy that the increase in demand for ETH relative to Bitcoin and the decreasing selling pressure is another market trend confirming that ETH's recent performance has lagged behind Bitcoin and may have bottomed out. Similar accumulation patterns are evident in the altcoin space, where savvy investors are quietly positioning themselves in anticipation of the altcoin recovery.
The surge in trading volume indicates renewed interest
Another key event confirming the existence of the altcoin season is the relative ratio of price to ETH spot trading volume, which has reached 0.89, the highest level since August 2024. As emphasized by the analysis, this development indicates that traders, holders, and investors have increased their exposure to ETH compared to Bitcoin.
The surge in trading volume is not limited to Ethereum. XRP's whale activity has increased, with a significant number of transactions indicating institutional investors are accumulating. Despite market volatility, Solana's trading volume remains healthy, and Cardano has regained retail interest following recent progress. Even Shiba Inu's trading volume has shown remarkable stability, indicating sustained community engagement.
It is worth mentioning that this pattern occurred between 2019 and 2021 when ETH's price quadrupled, surpassing Bitcoin. During the same period, other major altcoins saw even more significant increases, with some assets achieving returns of 10x or even 100x at the peak of the altcoin season.
Market outlook
As of the time of writing, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is priced at $2,672, while XRP is trading near a key support level. Solana maintains its position among the top ten cryptocurrencies, Cardano shows signs of breaking out of its consolidation pattern, and Shiba Inu continues to benefit from the meme coin momentum.
With these technical and fundamental indicators aligning, the cryptocurrency market seems to be laying the groundwork for the next significant altcoin season, with Ethereum leading the way, and major altcoins like XRP, Solana, and Cardano, as well as speculative assets like Shiba Inu, likely to benefit from the changing market dynamics.