What Is the Altcoin Season? Opportunities and Challenges When Investing in Next Altseason Tokens

The cryptocurrency market is not always solely focused on Bitcoin. Through cycles, there are always periods when altcoins take the spotlight, creating enormous profit opportunities for savvy investors. This period is called the “altcoin season” — a phenomenon that anyone wanting to succeed in the crypto space needs to understand thoroughly.

Currently, (December 2025), Bitcoin hovers around $87.34K, with a market dominance of 54.96%. Market sentiment is quite optimistic, laying a strong foundation for a robust altcoin season. This article will help you gain a deeper understanding of altcoin seasons, signs to watch for, and effective trading strategies.

What Is an Altcoin Season? Definition and Mechanism

An altcoin season refers to a period in the cryptocurrency market when alternative coins (altcoin) begin to outperform Bitcoin in terms of profit and value. During this time, interest and investment flows shift from Bitcoin to other cryptocurrencies, causing the value and trading volume of altcoins to surge.

The nature of this phenomenon stems from a simple fact: when Bitcoin’s price has risen significantly, many individual investors seek lower-priced opportunities in altcoins. They believe that emerging coins have higher profit potential, especially when new technologies or trends (such as DeFi, NFT, AI, GameFi) start attracting attention.

A characteristic of the altcoin season is the decrease in Bitcoin’s market dominance. When Bitcoin’s market cap relative to the total crypto market cap declines, it indicates that most of the growth is coming from altcoins. Currently, Bitcoin dominance stands at 54.96%, showing there is still plenty of room for the next altseason tokens to develop.

Bitcoin Season vs Altcoin Season: Two Sides of the Same Coin

To understand altcoin seasons clearly, compare them with Bitcoin seasons — periods when capital flows focus on Bitcoin and other major coins.

Bitcoin Season is characterized by:

• Bitcoin dominance rising above 50%
• Slow or even declining altcoin prices
• Investors favoring “safe” assets like Bitcoin or stablecoins
• Conservative sentiment, risk aversion

Altcoin Season on the other hand features:

• Bitcoin dominance dropping below (50%)
• Strong price increases in altcoins, often surpassing Bitcoin’s growth rate
• Capital flowing into promising projects, new technologies, memecoins
• Optimistic sentiment, risk-taking attitude

When a bear market (bear market) appears, investors tend to flock to Bitcoin and stablecoins, leaving altcoins behind. But as market sentiment improves and confidence returns, capital begins to seek new opportunities, and the altcoin season begins.

Historical Altcoin Seasons: Lessons from the Past

(2017-2018: The ICO Boom

At the end of 2017, Bitcoin dominance started at 87% and plummeted to 32% in January 2018. This was an unprecedented altcoin season, driven by the first wave of cryptocurrency issuance )ICO###.

Total crypto market capitalization ballooned from $30 billion at the start of 2017 to over $600 billion a year later. Many altcoins reached all-time highs (ATH), prompting investors to hunt for the next “hidden gems.”

However, this bubble burst quickly, leaving valuable lessons: not all ICO projects are worthwhile, and excessive speculation always leads to losses.

(Early 2021: The Second Wave

In 2021, another altcoin season unfolded, with Bitcoin dominance dropping from 70% to 38%. Altcoin market share doubled from 30% to 62% within a year.

Key projects during this period included DeFi, NFT, and memecoin projects. Solana, Polygon, Dogecoin, Shiba Inu, and BNB became iconic tokens of this season. The crypto market surpassed $2 trillion for the first time, reaching $3 trillion by year’s end, with Bitcoin hitting $69,000.

But, as before, this enthusiasm was short-lived. 2022 saw a severe crash, with many projects collapsing or disappearing entirely.

)Q4 2023 to Present: New Signals

The current optimistic market sentiment is driven by positive events: Bitcoin halving has occurred, spot Bitcoin ETF approval, and potential approval of Ethereum spot ETF. Ethereum is currently priced at $2.92K.

Unlike previous altcoin seasons centered around ICOs or DeFi, this time the market is expected to see a “fireworks” display across various sectors: AI, GameFi, metaverse, DePIN, web3. Next altseason tokens could emerge from any of these directions.

How to Recognize the Start of an Altcoin Season?

Although there is no foolproof formula, certain clear signs include:

Declining Bitcoin Dominance: When Bitcoin dominance falls below 50%, it signals that altcoins are gaining the upper hand. Currently at 54.96%, there is still some room to grow.

Surging Altcoin Trading Volume: When trading volume on exchanges is mainly concentrated in altcoins, it indicates investor interest.

Overall Market Sentiment Is Optimistic: Positive news, blockchain developments, regulatory approvals — all help lay the groundwork for an altcoin season.

New Projects Launching: When promising altcoin projects hype up, it often signals the start of an altcoin season.

Emerging New Financial Trends: AI, GameFi, DePIN, metaverse — whenever a new trend surfaces, related altcoins can ride this wave.

Trading Strategies During Altcoin Season

Conduct In-Depth Research

Before investing in any altcoin, take time to understand:

• The development team
• Core technology
• Roadmap
• Real market potential
• Community support around the project

Avoid hype-driven investments without understanding the fundamentals.

Diversify Your Portfolio

“Don’t put all your eggs in one basket” — the golden rule of investing. Spread your capital across multiple promising altcoins, from large-cap ###large-cap( to mid-cap and small-cap projects.

Balance proven projects with those showing higher growth potential but also higher risk.

) Implement Strict Risk Management

• Set clear stop-loss orders ###stop-loss(
• Define profit targets before entering trades
• Only use capital you can afford to lose
• Avoid margin trading )margin trading### if you are a beginner

( Keep Monitoring the Market

Cryptocurrency markets never sleep. Changes can happen within minutes or hours. Stay updated on:

• Regulatory news
• Technological developments
• Market sentiment
• On-chain data

Risks Not to Overlook

) Extreme Price Volatility

Altcoins are much more volatile than Bitcoin. Bad news can cause prices to drop 30-50% within hours. Low-liquidity exchanges can widen spreads.

( Price Bubbles and Speculation

Artificial hype can create dangerous bubbles. Rapid price increases without fundamentals, followed by quick crashes — this has been the history of many altcoins.

) Scams and Rug Pulls

Not all altcoin projects are legitimate. Some:

• Rug pulls: developers abscond with investor funds
• Pump-and-dump schemes: artificially inflate prices then sell off to trap small investors
• Complete scams: no real technology behind

Regulatory Changes

New policies from major economies can significantly impact the altcoin market. Announcements from authorities can completely crush market sentiment.

Conversely, positive news about clear regulations or approval of new blockchain technologies can trigger a new wave.

Conclusion

Altcoin seasons offer enormous opportunities but also carry significant risks. Success depends not on luck but on:

• Deep knowledge
• Good risk management
• Investment discipline
• Continuous information updates

Next season tokens are not necessarily the projects famous today. They could be innovative technologies you haven’t heard of yet. Take time to research, learn, and prepare for the next opportunity.