#Altseason 2025—Is It Real This Time?(SPOILER: Only for the Right Coins
Bitcoin dominance has slipped under 60% and Ether within striking distance of new highs—signs many traders call “altseason.”But this cycle won’t be a repeat of the old blanket rallies where every token pumped together.Instead,expect selective, narrative-driven rotation(AI, RWAs, high-quality L1s/L2s)supported by institutional buckets and ETFs—not free-for-all fueled solely by retail FOMO
What’s changing:
Institutional capital reshaping playbook.Spot ETFs have pulled huge inflows (mostly into BTC/ETH), institutional buyers now prefer liquid, compliance-friendly assets.That means altcoins with real utility and good on-chain fundamentals will attract capital—while tiny,speculative tokens won’t.
Too many tokens = more selective rallies.Tools like Pump.Fun exploded token issuance, creating massive dilution:Cointelegraph cites platforms that added millions of low-utility tokens.That glut makes a broad alt rally far less likely.
How this altseason could play out
Shorter,shallower,and choppier:Analysts expect faster window (months,not years) where strong narratives and liquidity converge to lift selected projects—then quick rotation or profit-taking.
Narrative winners, not everything winners: AI-native tokens, RWA connectors, L1s/L2s with clear roadmaps are likeliest to outperform. Meme and low-liquidity tokens face higher downside even during rally
Risks you should watch:
Token unlocks & dilution:Large scheduled unlocks can flood supply and sap rallies
Retail sidelined:Many retail traders remain burned and hesitant
Practical takeaways (for traders & investors)
Focus on quality projects with clear on-chain usage and institutional interest
Watch volume+ETF flows for confirmation—these move markets now
Expect short windows for outsized gains; tighten stops and scale profits
Beware of “hopium”—don’t chase every pump; liquidity and fundamentals matter more than hype.
Source:Felix Ng/Cointelegraph Magazine (Aug 13,25).
