To say something out of tune with the current market, the altcoin season may come in June!
In the world of cryptocurrency, Bitcoin is soaring, but what does it matter to me? With a handful of altcoins, when will I get back to the cloud? The frenzy of funds moving from Bitcoin to other high-risk, high-return altcoins is what we retail investors have been waiting for.
However, the altcoin season has been dead since 2022, and new altcoins struggled to emerge in the first half of 2023. The end-of-year inscriptions frenzy in 2023 made some think it was a prelude to 2024, but the first half of 2024 turned out to be a total bust, and by the first half of 2025, they will be hunted down to the underworld.
There is no doubt that when Bitcoin rises to around $200,000 and starts to plunge back, most altcoins will be left with nothing. However, before that moment arrives, most mainstream altcoins still have a wave of takeoff ahead; I believe no one would disagree, but when will it take off? It might be next month.
Hello, this is Blockchain Thinking. This article will take you into this crypto feast, discussing everything from the surge of institutional funds, the soaring on-chain data, to the resurgence of the AI sector, the increase in market liquidity, and the heated discussions among influencers on social media, all together to explore why the footsteps of the altcoin season are getting closer!
1. Influx of institutional funds: The 'weather vane' from Bitcoin to Ethereum.
If the altcoin season is a grand ball for retail investors, the leading dancers have boldly announced that the ball is about to start. However, first, I must dance solo, and that’s the institutional funds of Bitcoin. In May 2025, the net inflow of Bitcoin ETFs reached a new high, showing the continued affection of institutions for this 'King of Crypto.' According to Coindesk, the net inflow of Bitcoin ETFs in May reached $5.77 billion, breaking the record since November 2024. The single-day figure was even more impressive: a net inflow of $432.7 million on May 28, undoubtedly a strong boost for market confidence.
But what’s more interesting is that the dance is quietly shifting towards altcoins like Ethereum. BlackRock splurged $52.7 million on Ethereum on May 29, seemingly shouting to the market: 'Hey, don’t just focus on Bitcoin; altcoins have great opportunities too!'
Meanwhile, Ethereum ETFs attracted $287 million from May 19 to 27, pushing its price from $2,513 to $2,720, and it surged again to $2,780 on May 29, although it was later considered a false breakout.
2. On-chain data surges: The 'vibrant party' of Solana and Base.
If institutional funds are the opening dance of the big shots, then on-chain data is the fervent party of the underlying ecology. The two major public chains, Solana and Base, are igniting market enthusiasm with stunning performances.
First, let’s look at Solana. According to Messari's Q2 2025 report, Solana's on-chain GDP grew by 20%, and the average daily trading volume on DEX in April soared to $8.3 billion, a 153.4% increase year-on-year compared to the previous quarter. The meme market of Solana, which was ruined by Trump in February and March, is now announcing its return, with WIF back at $1.30, indicating that the 'doge' is back.
Now, let’s look at the Base chain. In May 2025, Base's trading volume approached $40 billion. Although it hasn’t yet recovered to the levels seen around November 2024, it is still a significant sign of recovery, indicating that hot money in the market is gradually warming up.
3. Resurgence of the AI sector: Fet and Virtual's 'new star stage.'
If Solana and Base are the main stage of the party, then the AI sector is the shining new star performance area. The combination of artificial intelligence and cryptocurrency was originally the most certain sector at the beginning of the year, but a sudden Deepseek mutation disrupted the original celebration.
Everything is currently recovering.
FET is one of the leaders in the AI sector. In the past 30 days, FET has increased by 21.7%. Behind this surge is the renewed recognition of its innovative applications in decentralized AI networks. Also soaring is TAO, which has nearly doubled since March.
On May 28, Akash Network (AKT) broke through a descending wedge and climbed back above $1.40, driven by integration with NVIDIA and a year-on-year revenue growth of 1,731% for 2024.
Of course, we still need to look back at the AI agent sector. VIRTUAL, as an innovative project combining AI and the metaverse, has recently shown strong price performance, rising 19.8% in the past seven days, currently priced at $2.37.
The recent surge is because Virtual is not only playing with AI but also has a great combination with DeFi. Now, Virtual can be said to be a wealth-generating perpetual motion machine, encouraging users to stake $VIRTUAL tokens to generate points; the longer the staking period, the higher the multiplier, attracting funds to flow in and lock up, reducing circulation and pushing up the coin price, providing essential fuel for the ecosystem while rewarding diamond hands with sufficient returns, with several new projects offering short-term returns of up to 30 times! It has formed a closed loop of 'token scarcity → user growth → ecosystem expansion → feedback profits.' If it were just playing with DeFi, it might eventually become a Ponzi scheme, but clearly, Virtual aims to be a high-quality incubator platform for AI agents.
4. Market data and liquidity: The 'critical point' of Bitcoin's dominance.
The party needs to be lively, and liquidity is key. Current market data indicates that the dominance and liquidity changes of Bitcoin are paving the way for the arrival of the altcoin season.
Bitcoin's dominance is currently about 62%, still strong. However, experts point out that if this number falls below 52%, funds could flow massively into altcoins.
In recent days, as Bitcoin declines, altcoins are dropping even more sharply. The Bitcoin dominance index has risen again, but it's estimated that 'the good times won’t last long.' Since breaking below the ascending channel, it seems that short-term Bitcoin holders are clearly 'done playing,' and the overflow of funds wants to capture some rebound altcoins, which will likely see higher gains.
5. Heated discussions on social media: The influencers' 'altcoin season prophecy.'
If the previous signals are the hardware support for the party, then social media is the DJ igniting the atmosphere. KOLs on platform X are waving flags for the altcoin season with their predictions, using two influencers with over 150,000 followers as examples.
On May 22, @MasterCryptoHq more calmly analyzed: 'Bitcoin's dominance is weakening, and the trading volume and price performance of altcoins indicate that the altcoin season may officially start in June. Don’t miss this opportunity!'
On May 28, @Danny_Crypton excitedly wrote in a post: 'The altcoin season is coming, and funds are flowing from Bitcoin to high-beta altcoins, especially projects in the AI and DeFi sectors. Get ready for the celebration!'
These voices not only reflect market sentiment but will further amplify the heat of the altcoin season. Other KOLs are also following suit, predicting that May or June will be the starting point of the altcoin season, with social media serving as an amplifier for this wave. A bull market is inherently a reflexive experimental paradigm.
Conclusion: The celebration of the altcoin season is just around the corner.
Overall, the five signals of the altcoin season—shift of institutional funds, surging on-chain data, resurgence of the AI sector, increased liquidity, and heated discussions on social media—are piecing together an exciting picture. Although the market is currently sluggish, don’t despair; be patient and wait. Always be ready with your 'ticket to entry'; let’s welcome the wave of the altcoin season together!
