Why is altseason an anticipated phenomenon in the crypto market

The altseason term describes a unique market cycle when alternative cryptocurrencies (all projects except BTC) start rapidly gaining value, often outpacing Bitcoin’s own dynamics. During such periods, investors massively shift capital from Bitcoin into more volatile and risky assets, hoping for exponential portfolio growth.

Market Psychology: Why Are Traders Waiting for It?

Expecting an altseason is not just speculation. It is a fundamental part of the crypto market driven by several factors:

The Phenomenon of Multiple Capital Increases

History has many examples where unknown projects delivered returns of 300-500% in a few weeks. An investor who risked investing $100 in the right assets could have earned $1000-$10 000 in just a few months. This creates a strong psychological incentive for market participants who do not want to miss the next surge.

The FOMO Effect

When newcomers see a little-known token grow tenfold, it triggers panic and a desire not to be left out. The influx of fresh capital, especially from inexperienced traders dreaming of finding the “next Ethereum,” creates a self-sustaining demand bubble.

( Cyclicality and Historical Patterns

Altseason begins after Bitcoin completes its rally and the price stabilizes. Experienced investors take profits in BTC and transfer funds into altcoins, anticipating the continuation of a bullish trend in other assets. The current Bitcoin market share is 55.85%, and when this figure starts to decline, it signals a redistribution of capital.

Technological Breakthroughs: Each Cycle Brings New Trends

Every altseason introduces a new technological trend:

• DeFi protocols revolutionized financial services without intermediaries
• NFTs and metaverses opened new horizons for digital assets
• GameFi created an economy where entertainment combines with income
• L2 solutions addressed scalability issues of main blockchains
• AI tokens linked the crypto world with artificial intelligence

Early investors entering these trends at the initial stage have a chance for multiple growth of their investments.

Historical Examples: What Did It Look Like Before?

) The First Major Altseason ###2017-2018###

The 2017-2018 period marked the era of the first real altcoin boom. During that time:

• Ethereum (ETH) surged from (to $1400+
• **Ripple )XRP$8 ** soared from $0.006 to $3.84
• Litecoin (LTC) and other projects delivered returns from x10 to x100
• It was a period of mass ICO launches, when people first heard about smart contracts and tokenomics

( The Second Altseason Cycle )2021###

2021 brought a completely new paradigm:

• The rise of DeFi ecosystems: Uniswap (UNI current price $5.47), Aave, Compound (COMP $27.16), Sushi (SUSHI $0.33)
• The boom of DEX platforms, including PancakeSwap (CAKE $1.96)
• Solana (SOL) grew from (to $200+, now trading at around $138.37
• **Axie Infinity )AXS$2 ** grew from nothing to $160, demonstrating the strength of the GameFi trend

How to Track the Start of an Altseason?

Crypto analysts pay attention to several signals:

Bitcoin Market Share — this is the main indicator. When Bitcoin Dominance begins to decline, it means capital is flowing into alternative assets. The current value is 55.85%.

Growth in Altcoin Trading Volumes indicates increased participant interest. When unknown tokens start appearing in CoinMarketCap trends, it’s a reliable sign of a cyclical shift.

Risks and Opportunities: Two Sides of the Same Coin

Altseason is a period of maximum opportunities but also extreme risks. Experienced traders prepare in advance: diversify their portfolios, study project metrics, and clearly allocate risks across positions. Beginners often act impulsively, entering at peaks and losing capital during corrections.

The main rule: the higher the potential return, the stricter the discipline and the cooler-headedness a trader must have.