The difference between previous altcoin seasons and this altcoin season!
In the past, altcoin seasons typically saw funds flowing from Bitcoin (BTC) to other cryptocurrencies (altcoins), leading to a phase where altcoins outperformed BTC.
The three core elements of a traditional altcoin season include:
1. Capital rotation: BTC's growth slows, funds flow to ETH and mainstream altcoins, and finally spread to small-cap tokens.
2. Altcoins outperform BTC: The market experiences a broad rally, with some altcoins surging several times in a short period.
3. Market sentiment FOMO: Retail investors flood in, and community hype reaches a peak.
However, the market environment in 2025 is different from the past, presenting characteristics of 'Altcoin Season 2.0':
1. Funds no longer just overflow from BTC but directly flow from stablecoins (such as USDT, USDC) into specific narrative sectors (like AI, RWA, PolitiFi, etc.).
2. Sector rotation accelerates, with funds concentrated in a few high-quality projects, rather than a broad-based rally.
3. Institutional capital and narrative-driven, rather than retail FOMO dominating.
The direction of market funds has changed, and by letting go of previous fixed mindsets, one can make money in this changing market.
