Altcoin season 2025: Signs to recognize and top coins to note

The crypto market is undergoing a transformation and seems to be on the right track to have its first real altcoin season of 2025. The flow of funds from Bitcoin to Ethereum (ETH) and other altcoins is painting an optimistic picture at this moment.

The question is: When will the market enter the altcoin season and which tokens should investors watch?

The altcoin season everyone is waiting for

The crypto market is currently in a transition phase, having only made it halfway to officially enter the altcoin season. The altcoin season is only recognized when more than 75% of the top 50 coins outperform Bitcoin.

Currently, this figure stands at 49%, indicating that the market is gradually moving towards altcoin dominance but has not yet fully transitioned. As more and more altcoins attract interest and outperform Bitcoin in performance, investor sentiment is slowly changing — this could lead to an altcoin season in the near future.

The performance of the top 50 altcoins compared to Bitcoin | Source: BlockchainCenterThis midway milestone indicates that the altcoin market is still in a consolidation phase, with some tokens starting to outperform Bitcoin. However, the altcoin season still has the potential to emerge before the end of Q2 2025.

Analyst Michaël van de Poppe stated that macroeconomic factors play a key role in guiding the movement of cryptocurrencies.

"Macroeconomic factors are extremely important in causing investors to shift from a risk-off mindset ( to a risk-on acceptance ). That is why there exists a strong inverse correlation between gold and ETH. When gold consolidates, that is when riskier assets like ETH begin to outperform. Conversely, if gold rises sharply, that is often a period when altcoins underperform. Additionally, the hype surrounding the crypto market also increases due to recent mergers and acquisitions, IPOs, as well as events related to regulatory bills in the U.S.," Michaël shared.

Bitcoin's dominance has recently begun to regain momentum after a 6.1% drop earlier this month. The initial decline in Bitcoin's dominance was seen as a signal that the altcoin season may be approaching.

Historically, when Bitcoin's dominance rate declines, it indicates that altcoins are outperforming the king of cryptocurrency, leading to widespread growth in the market. However, if Bitcoin's dominance recovers, the market may return to the trajectory influenced by Bitcoin, thereby delaying the onset of altcoin season. Michaël believes that the main cause may stem from macroeconomic factors.

"If the altcoin market cannot continue its upward trend, the main reason is due to factors outside the crypto market – similar to the last six months, when almost all assets had negative returns due to a completely changed macroeconomic context. If the risk-off sentiment returns to the market – possibly due to trade wars, armed conflicts, or recession risks – then the altcoin market is likely to decline again. Conversely, if that does not happen, we may witness a strong growth market," Michaël commented.

!()https://img-cdn.gateio.im/webp-social/moments-3bd57d1cffd3178cc24c5fa22daf99d7.webp[altcoin]Bitcoin dominance rate | Source: TradingView## ETH is on the rise

The price of ETH has increased by 55% since the beginning of the month, approaching the $4,000 mark. This rise is mainly due to the flow of capital shifting from Bitcoin to ETH, attracting investors seeking higher returns.

"ETH has outperformed Bitcoin by over 70%, indicating that we are currently in a market skewed towards altcoin. The reason for this sudden shift is due to legal changes in the US. The passing of the GENIUS bill and the approval of the CLARITY act have paved the way for institutional money to flow in, as Ethereum ETF has seen more capital inflow than Bitcoin ETF in the past few weeks," Michaël shared.

!()https://img-cdn.gateio.im/webp-social/moments-75f509e4baa9f4265d1f97c629fed9bc.webp[altcoin]ETH Price Analysis | Source: TradingViewThe recent growth momentum of ETH is expected to benefit the altcoins built on its second-generation blockchain. These coins will become the standout stars in the upcoming altcoin season that investors should keep an eye on.

"It is highly likely that utility coins in the Ethereum ecosystem ( such as Aave, Optimism, Celestia, Arbitrum) will thrive when Ethereum performs well. Additionally, any token related to the US has the potential to outperform the rest due to attracting significant attention and expectations," Michaël commented.

Positive momentum surrounding ETH is expected to push the price towards the $4,000 mark, and it may even exceed that in the coming days. With capital continuing to flow from Bitcoin to ETH, this coin could reach new highs, which will have a strong impact on the entire crypto market. Investors will continue to monitor the next bullish signals as ETH leads the trend.

Dinh Dinh