When is the altcoin season coming: understanding the phenomenon that drives the market

Altseason refers to that specific period in the crypto cycle when altcoins — any cryptocurrency assets outside of Bitcoin — gain prominence and surge in value. It is the time when investors shift their capital from BTC to lesser-known projects, seeking amplified returns. This phenomenon marks one of the most anticipated cycles by any participant in the crypto universe.

Signs that the season has arrived

The crypto community has well-established methods to identify when altseason has truly begun. The most reliable indicator is Bitcoin dominance — when this metric consistently declines, it reveals that capital flow is being redirected from main coins to alternative assets.

In parallel, there are complementary signs: a significant increase in altcoin transaction volume, new tokens frequently appearing on CoinMarketCap trending lists, and a general intensification of speculation in the market.

The reasons behind collective anxiety

Spectacular capital multipliers

When altseason sets in, gains that seemed impossible become real. Emerging tokens often accumulate growths of 300%, 500%, or even higher within compressed periods of weeks. The 2017-2018 cycle provides memorable examples: Ethereum jumped from $8 to above $1,400, while Ripple (XRP) reached $3.84 from just $0.006. A modest initial investment could multiply several times, turning hundreds of dollars into thousands.

Innovative trends gain ground

Each manifestation of altseason brings new technologies and concepts:

• DeFi (decentralized finance redefines intermediation)
• NFT (digital representation of unique assets)
• GameFi (union of gamification and financial returns)
• Layer 2 scalability protocols
• Tokenized artificial intelligence and machine learning

Pioneers who identify these emerging trends have the opportunity to capture value before knowledge disseminates to the general population.

Market psychological dynamics

Watching an unknown token multiply its value by 10x triggers a powerful emotional reaction: FOMO (fear of missing out). When this feeling infects the mass of traders and investors, especially novice ones afraid of missing “the next Ethereum,” a large flow of capital converges into altcoins, fueling a self-sustaining cycle of demand.

Repeating historical cycle

The pattern shows consistency: after Bitcoin accumulates significant gains and its price stabilizes or corrects, investors take profits in BTC. This freed capital migrates to altcoins in the expectation that the bullish movement will transcend the dominant asset.

Historical portrait of past cycles

Period 2017-2018: The initial boom

The first massive wave of altseason brought projections like NEO, NEM, IOTA reaching multipliers between x10 and x100. Solana (SOL), although came later, became a subsequent reference. This phase popularized concepts such as smart contracts and tokenomics among lay investors.

Period 2021: Reinvention through new segments

Focus shifted to DeFi and NFT. Platforms like Uniswap, Aave, Compound, PancakeSwap, and Sushi experienced explosive value growth. Solana (SOL) rose from $2 to over $200, while Axie Infinity (AXS) went from $0.50 to $160, leading the Play-to-Earn gaming trend.

The reality beyond optimism

Altseason represents a genuine opportunity combined with high risk. It does not occur regularly but becomes a celebration when it happens. Veteran investors systematically prepare: they build diversified portfolios, monitor key metrics, and implement risk management. Novice participants, in turn, learn by observing the market in action — sometimes accumulating losses, other times radically multiplying their wealth.

The uncomfortable truth: the greater the promise of astronomical profits, the greater the need for emotional balance and clear strategic planning. Altseason rewards those who are prepared, not just lucky ones.