The difference between past altcoin seasons and this altcoin season!
In the past, altcoin seasons typically saw funds flow from Bitcoin (BTC) to other cryptocurrencies (altcoins), resulting in altcoins outpacing BTC in gains.
The three core elements of a traditional altcoin season include:
1. Capital rotation: As BTC's growth slows, funds shift to ETH and mainstream altcoins, eventually spreading to small-cap tokens.
2. Altcoin gains outperform BTC: The market experiences a broad rally, with some altcoins skyrocketing several times in the short term.
3. Market sentiment FOMO: Retail investors pour in, and community hype is high.
However, the market environment in 2025 is different from the past, exhibiting characteristics of 'Altcoin Season 2.0':
1. Funds no longer merely overflow from BTC, but directly flow from stablecoins (such as USDT, USDC) into specific narrative sectors (such as AI, RWA, PolitiFi, etc.).
2. Sector rotation accelerates, with funds concentrating on a few quality projects, rather than a broad rally.
3. Institutional funds and narrative-driven investments dominate, rather than retail FOMO.
Market funds have changed direction; letting go of past entrenched thinking is essential to make money in this changing market.
