Introduction: A constantly changing market
The cryptocurrency market has experienced a true rollercoaster in recent months. After a significant recovery in 2024, the start of 2025 brought new challenges and volatility. Bitcoin has approached its historical highs, but it is the altcoins – all the alternative cryptocurrencies to Bitcoin – that are currently in the spotlight for their dramatic ups and downs. What is happening in the current crypto market and where could it be headed? In this article, we explain it clearly and accessibly, suitable for both beginners and experts, analyzing recent trends, macroeconomic factors, the evolution of relevant altcoins, and short- and medium-term projections.
Current state of the crypto market
The start of 2025 was tumultuous for cryptocurrencies. Many altcoins suffered sharp declines in the first quarter: the combined market capitalization of altcoins reached a reduction of around 41% from its peak in December 2024 (USD 1.6 trillion) to mid-April 2025 (approximately USD 950 billion). This marked decline generated fears of a possible market capitulation, with investors liquidating positions amid uncertainty. However, as spring progressed, sentiment began to improve. In fact, at the beginning of May, the crypto market had its best week of the year, with the total value of all cryptocurrencies rising nearly 15% in just a few days. This remarkable recovery, which began in the second week of April, was supported by positive news globally and a renewed influx of capital into the ecosystem.
Top altcoins led this rebound. Ethereum (ETH), the largest altcoin, led the bullish streak rising nearly 45% in a week and crossing the USD 2,400 barrier again, something not seen in a long time. XRP (Ripple) also resumed a positive path, breaking key resistances around USD 2 and targeting the $2.5 area as the next bullish target. Meanwhile, Solana (SOL) surged more than 20% during that period, partly driven by a new wave of memecoin activity on its network, reaching levels close to USD 170 that could signal a trend change. In summary, after difficult months, altcoins are showing signs of life again, although with marked variations between projects.
Macroeconomic factors influencing cryptocurrencies
Behind these movements in the crypto market lie significant macroeconomic factors. On one hand, global monetary policy is beginning to become more accommodative in 2025. The inflation that hit in 2022-2023 has been easing, and central banks like the U.S. Federal Reserve have halted interest rate hikes and are even considering cuts in the current year. A declining interest rate environment is usually favorable for risk assets, as it increases available liquidity and encourages the search for higher yields. In fact, many analysts estimate that 2025 will mark a positive macro shift for cryptocurrencies, with less fiscal and monetary tightening, which would eliminate headwinds weighing on this market. A recent example: at the beginning of May, speculation was rife regarding the first rate cut from the Fed, triggering an increase in purchases of Bitcoin and Ether as more relaxed financial conditions were anticipated. The expectation of a more flexible monetary policy has reinforced bullish sentiment in the crypto ecosystem.
The geopolitical and regulatory climate is also playing its part. The trade relationship between major world powers showed unexpected reliefs in 2025 – for example, temporary tariff agreements between the U.S. and China – which improved the appetite for risk assets globally. On the regulatory front, a more friendly approach to cryptocurrencies is perceived in certain jurisdictions. In the United States, after years of uncertainty, authorities began to open the door to financial instruments based on crypto assets. At the end of 2023, the first ETFs (exchange-traded funds) linked to Bitcoin and Ethereum were approved, and regulators are currently evaluating dozens of ETF proposals for altcoins. The case of Solana stands out, for which Bloomberg Intelligence assigns a 90% probability of approval in 2025, and similarly high expectations surround possible ETFs for XRP or Dogecoin. The eventual approval of these funds could channel a wave of institutional investments directly into the world of altcoins, providing a significant boost in demand. In other words, the most recent economic and regulatory conditions – more liquidity, lower risk aversion, and clearer legal frameworks – are laying stronger foundations for a possible new phase of crypto growth.
Bitcoin vs. Altcoins: Are we facing a new 'altseason'?
Bitcoin dominance by market capitalization (2014–2025). After sharp declines in 2018 and 2021 coinciding with altcoin seasons, Bitcoin has regained a dominance close to 65% in 2025, a high in several years.
A key concept in the ecosystem is 'altcoin season' (altseason), which refers to periods when altcoins achieve returns that significantly outperform Bitcoin on a widespread basis. Historically, altseasons have typically occurred after major Bitcoin rallies, when the leading cryptocurrency stabilizes and investors rotate capital into alternative coins in search of greater profits. A common indicator is Bitcoin's dominance, meaning the market capitalization share of BTC relative to the total crypto market. When Bitcoin's dominance falls significantly, it is usually because altcoins are rising faster than Bitcoin, signaling a possible altseason. For example, during the great altseason of 2017-2018, BTC's dominance plummeted from ~86% to just 38% in a matter of months, and in 2021 it fell from ~70% to nearly 38% again amid the peak of DeFi, NFT, and memecoins altcoins. During those intervals, dozens of alternative cryptocurrencies multiplied their value driven by market euphoria.
And what is the situation now, in 2025? Currently, Bitcoin holds around 65% of total capitalization, one of its highest dominance levels in recent years. This figure reflects that, despite recent rebounds in some altcoins, Bitcoin has been the big beneficiary of incoming money to the market in the most recent bullish phase. A BTC dominance this high typically indicates that altcoins (in aggregate) have not gained ground against Bitcoin – in fact, several have lagged or are still recovering from the previous drop. For a genuine altseason to be confirmed, many analysts point out that Bitcoin should cede some of its share to the 50% zone or lower, accompanied by more aggressive rises in mid-cap and small altcoins. It is not surprising that the famous 'Altcoin Season Index' (which considers how many of the top 50 altcoins outperform BTC over 90 days) has not yet given the definitive signal. This index recorded some rebounds in March 2024 and January 2025, but none prolonged or intense enough to qualify as a full altcoin season. In other words, we have yet to see a generalized 'altcoin boom' in this bullish cycle.
Several factors explain why altcoins, in general, have had more modest performance compared to Bitcoin so far. Analysts point out that speculative frenzy was channeled into very specific niches: for example, memecoins experienced spikes in popularity that drained liquidity from the broader altcoin market. During 2023-2024, countless meme tokens emerged that captured the attention (and capital) of investors seeking 'the next Dogecoin,' but many of those ephemeral assets collapsed quickly, leaving less money circulating towards more solid projects. Other experts blame the saturation of crypto investment products for institutions, such as ETFs and funds focused solely on major coins, which may have limited the flow of capital into mid-cap altcoins. It is also true that under the generic label 'altcoins' reside very diverse projects – from smart contract platforms to gaming tokens, stablecoins, or meme coins – and it no longer makes much sense to expect that 'all will rise at once' indiscriminately. The market is becoming more selective: altcoins tend to be valued based on the fundamentals of their own ecosystem, real use, and business cases, rather than just rising due to Bitcoin's pull effect. In the words of CryptoQuant's CEO, 'the era when everything rose has ended; we are facing a selective altseason, where many altcoins will not succeed.' This implies that we will likely see clear winners and losers among altcoins, depending on the value proposition offered by each project.
All in all, many investors are focused on a possible altseason in the second half of 2025, especially if Bitcoin enters a consolidation phase after its recent rises. A typical catalyst would be for BTC to stabilize and its dominance to start declining from the current ~65%. Some signs support this thesis: Bitcoin's dominance is at a historical resistance (a percentage ceiling where it previously stalled). If the pattern repeats, a correction in dominance (i.e., Bitcoin rising more slowly than altcoins for a while) could mark the beginning of a more pronounced altcoin profit cycle. In addition, the macro conditions described – more liquidity and risk appetite – could finally pave the way for the next growth phase led by altcoins. In the following section, we analyze which altcoins are better positioned and how they have evolved recently.
Featured altcoins: evolution and relevant cases
Not all altcoins are the same. Below we review some of the most representative alternative cryptocurrencies and how they have performed so far, from the highest market cap to emerging sectors.
Ethereum (ETH) – It is the quintessential altcoin and the second-largest cryptocurrency. Ethereum is the backbone of entire sectors such as decentralized finance (DeFi) and non-fungible tokens (NFTs), thanks to its smart contracts. In 2022 it completed 'The Merge,' a highly anticipated upgrade that shifted its mechanism to proof-of-stake and drastically reduced the issuance of new ETH, even making its supply deflationary during periods of high activity. After a bearish 2022, Ethereum has returned to the upward path: its price, which touched ~USD 1,000 in the bear market, surpassed USD 2,000 again in 2023 and recently reached USD 2,400 during the May 2025 rebound. It still trades about 60% below its all-time high (~USD 4,800 in November 2021), but its recovery has been firm. Ethereum has demonstrated resilience and continues to attract institutional investment, being considered one of the 'safe altcoins' due to its robust and diversified ecosystem. Its use in real-world applications (payments, stablecoins, gaming, etc.) keeps ETH in a dominant position among altcoins, and many anticipate it will lead any future broad altseason.
Binance Coin (BNB) – The native coin of the Binance ecosystem and BNB Smart Chain has shown exceptionally solid performance. BNB reached a new all-time high of USD 794 in December 2024, driven by intense activity on BNB Chain and demand for exchange tokens. Even after the correction in the first quarter, BNB remains around USD 600 (as of May 2025), just 24% below its historical peak. This contrasts with most altcoins, many of which are still trading 50–80% below their highs. CryptoQuant analysts highlight that BNB, along with Bitcoin, was among the assets that best withstood the recent market decline. Its fundamentals help explain this: BNB has real utility within Binance (fees, staking, access to services) and in BNB Chain (gas for decentralized application transactions), which supports its demand. Major institutions have also taken notice. For example, Standard Chartered published an optimistic report predicting that BNB could more than double its price by the end of 2025, reaching around USD 1,275. If Binance maintains its position as one of the largest exchanges in the world – they argue – BNB could even serve as a kind of 'benchmark asset' for the crypto market due to its relative stability. In summary, Binance Coin stands out as a high-profile altcoin with robust performance, supported by one of the largest ecosystems in the industry.
XRP (Ripple) – It is one of the veteran cryptocurrencies and is at the center of one of the most talked-about legal cases in the sector. XRP achieved a significant partial victory in 2023 against the SEC (U.S. regulator), when a judge ruled that XRP sales on public exchanges did not violate securities laws. This historic legal victory immediately boosted the price of XRP, which rose nearly 100% in a single day and doubled its market capitalization, returning XRP to the top 4 of the largest cryptocurrencies. Positive sentiment around Ripple Labs continued into 2024 and 2025, helping XRP break the USD 1 barrier for the first time since 2018 and advance even further. Currently, XRP is trading in the USD 1.5–2+ range, levels not seen in several years, partly reflecting the expectation that regulatory uncertainty will finally dissipate. Additionally, XRP could be one of the first altcoins to have its own ETF in the U.S.: several fund managers have proposed exchange-traded funds based on XRP, currently awaiting approval. If realized, this would represent an institutional boost for this cryptocurrency focused on cross-border payments. However, XRP investors remain attentive to legal fluctuations – the SEC could still appeal or raise new arguments – but for now, XRP has regained a central place among the highest market cap altcoins.
Solana (SOL) – Among high-performance blockchain platforms, Solana stands out for its speed and low cost, targeting use cases from DeFi to NFTs. Solana experienced a meteoric rise in 2021 (its price went from USD 2 to USD 260 at its peak) and then faced serious obstacles in 2022, including technical issues on the network and the collapse of the FTX exchange (which was one of its major supports). After hitting bottom near USD 8 in the crypto winter, Solana rebounded strongly in 2023 and 2024 due to improvements in its stability and sustained developer activity in its ecosystem. In 2025, SOL continues to regain ground: it recently reached the USD 150–160 range, having risen more than 20% in a few weeks. An interesting phenomenon is that Solana became the home of several viral memecoins (like the token BONK), which boosted its on-chain volume and attracted new users during speculative peaks. While those waves are temporary, they evidence the vibrant community backing Solana. On the institutional front, Solana also has the upper hand: being seen as one of the most promising layer-1 chains, numerous funds have applied for Solana ETFs for 2025, betting on its growth. With a 90% probability of approval according to Bloomberg analysts, a SOL ETF could inject even more capital into this ecosystem. In summary, Solana represents both the typical risk and reward of altcoins: it suffered dramatic drops, but its technical fundamentals and renewed interest allow it to aspire to reach its previous highs in a favorable market context.
Other altcoins to mention – Cardano (ADA), another well-known smart contract platform, has maintained a steady development of its technology (with updates like Shelley and Vasil in recent years), although its price has recovered more slowly than that of Ethereum or BNB. Dogecoin (DOGE) and meme coins in general continue to appear on the scene from time to time – especially when personalities like Elon Musk drop hints on social media – but their behavior is highly volatile and speculative. Nevertheless, Dogecoin remains in the top 10 by market capitalization, a testament to the enduring meme culture in crypto. Finally, stablecoins like USDT or USDC, while not speculative investments, are a fundamental piece of the crypto market, functioning as reserves of value in dollars within the ecosystem. The growth of Tether's (USDT) supply in 2023-2024 to new historical highs indicated that many investors sought safe haven in stablecoins during uncertainty, only to redeploy capital into Bitcoin and altcoins when conditions improved. Each segment of altcoins – whether DeFi platforms, gaming tokens, meme coins, or stablecoins – has its own dynamics, reinforcing the idea that the performance of altcoins will become increasingly heterogeneous and tied to the achievements of each project in its niche.
Short and medium-term projections and expectations
With the crypto market back in motion, what can we expect in the coming months? While predicting prices accurately is impossible, several analysts and institutions have launched projections about the potential direction of Bitcoin and altcoins for the remainder of 2025. In general terms, sentiment has become more optimistic than a year ago, although cautious views persist.
On the bullish side, some firms anticipate a great year for cryptocurrencies. A report from Steno Research rated 2025 as 'the best year in history' for the crypto market, forecasting target prices of ~USD 150,000 for Bitcoin and ~USD 8,000 for Ether by the end of the year. These analysts are becoming 'increasingly optimistic' about an imminent altseason, projecting that Ethereum will significantly outperform Bitcoin in performance and that BTC's dominance could fall from ~57% to 45% as altcoins take off. Among the reasons cited for this bullish scenario are an unprecedented favorable regulatory climate, a supportive macro environment with declining interest rates, an improvement in global liquidity, and Bitcoin's traditionally strong post-halving performance. It is worth noting that the halving (reduction in the issuance of new BTC) occurred in April 2024, and in previous cycles, the year following the halving (2013, 2017, 2021) corresponded with very positive market phases. Additionally, Steno and other experts expect record levels of institutional adoption, fueled by significant capital inflows into Bitcoin and Ether ETFs that are already operating in the U.S. In summary, the optimistic case paints a picture of 2025 as an expansion year, with Bitcoin reaching new highs and dragging leading altcoins upwards.
Now, not everyone shares unqualified optimism. From the more cautious side, it is warned that the crypto market could continue to experience ups and downs before any definitive take-off. Analysts from Coinbase, for example, note that there are still signs of caution and even risks of a temporary 'crypto winter' due to the recent market contraction and the very negative sentiment that settled after the declines at the beginning of the year. Adverse macroeconomic factors – such as potential setbacks in the global economy, trade tensions, or delays in rate cuts – could cool the appetite for digital assets in the short term. Nevertheless, even Coinbase highlights that while it is necessary to be cautious in the coming weeks, they maintain a constructive outlook for the second half of 2025, anticipating that when sentiment reverses, it will be 'quite quick' and explosive. In line with this view, the CEO of CryptoQuant, Ki Young Ju, emphasizes again that not all altcoins will emerge unscathed: only those with solid fundamentals, real business models, and revenue streams could outperform the broader market. In other words, the selection of quality projects will be crucial going forward. Several projects with weak use cases or solely dependent on speculation could lag behind or even fail to survive, even if the global market recovers.
In conclusion, the current state of the cryptocurrency market combines promising signals with a share of caution. On one hand, favorable macro factors (declining interest rates, increased liquidity, and risk appetite) and institutional advances (crypto ETFs, greater regulatory clarity) are laying the groundwork for a new bullish cycle that could significantly boost leading altcoins. On the other hand, lessons from the previous cycle suggest that we will not see a uniform rise of 'all altcoins,' but rather a more mature market where projects with real value and strong communities will prevail. For those following the crypto space, 2025 looks like a pivotal year: it is possible that in the coming months it will be defined whether we are facing the anticipated altseason – with Ethereum, BNB, XRP, Solana, and other quality altcoins taking the lead – or if Bitcoin will continue to dominate for a while longer. In any case, the investor or enthusiast would do well to inform themselves, diversify wisely, and not be carried away solely by euphoria. The crypto market continues to evolve rapidly, promising strong emotions for both newcomers and experts. Stay alert and enjoy the ride in this new wave of altcoins!
(Note: This article is informative and does not constitute financial advice. Always research and consider your own risk tolerance before investing.)
Key references 📚🔍
Coinbase Research – Monthly market report, April 2025: data on the decline and recovery of altcoin capitalization.
Investing.com – Analysis 'Bullish signals for altcoins' (May 2025): 15% weekly rebound, rises of Ethereum, XRP, Solana.
Cointelegraph en Español – 'Altseason 2025 – CryptoQuant' (Feb. 2025): selective altseason and warning from Ki Young Ju.
Cointelegraph en Español – 'Waiting for the altseason?' (Mar. 2025): explanation of the altseason index, impact of memecoins and institutional ETFs.
Cointelegraph en Español – 'Steno Research: 2025 best year for crypto' (Jan. 2025): bullish predictions post-halving for BTC, ETH, and market dominance.
Criptonoticias – CryptoQuant report on BNB (Apr. 2025): resilience of Binance Coin and comparison with ETH.
Cointelegraph en Español – Standard Chartered prediction for BNB (May 2025): bullish price forecast for Binance Coin.
Reuters – News 'Ripple wins partial case vs SEC' (Jul. 2023): boost for XRP after legal victory.
Cointelegraph – 'XRP jumps to top 4 after SEC case' (Jul. 2023): surge in XRP's capitalization and price after the court ruling.
Binance Research/Tangem – Educational blog on altseason (Feb. 2025): relationship between BTC dominance and altcoin seasons.
