Many crypto enthusiasts predicted that the altseason will happen in 2024, but it seems that we might have to wait for it until 2025. Specialists agree that Bitcoin and Ethereum are the main factors that drive this situation because they directly impact altcoins’ value. Alternative currencies start on an upward trend when the two largest assets in the sector surpass particular value levels. Therefore, it would be challenging to make an xrp price prediction for example without considering Bitcoin and Ethereum’s price evolution. At the moment, Bitcoin and Ethereum are finding their equilibrium in a market that was subjected to a halving in the spring, and as everyone knows, the sector needs a couple of months to find its new trajectory after such an important event.
2024 was a volatile year for cryptocurrencies, and to predict that an altcoin season will dominate the market in 2025 isn’t wrong. However, as an investor, you might want to know a couple of things.
Bitcoin remains the leader in the market
Bitcoin has been the main cryptocurrency dominating the sector since its inception. If other assets outperformed it, it was only for a short period because the digital currency with the largest market capitalization always bounces back. Crypto experts highlighted that when Bitcoin stabilizes and its value increases, altcoins follow suit and register the same market movements. However, altcoins didn’t seem to follow it in 2024, even if Bitcoin performed quite well most of the time. Bitcoin maintains its strong position in the market and is currently in a bull run. Unfortunately, we cannot say the same about altcoins, which are having issues performing well. This could only mean one thing, that Bitcoin will maintain its large market share, despite altcoin enthusiasts’ desire for one of the alternative cryptocurrencies to surpass it.
What does the altseason mean for the crypto sector?
While the crypto market highly differs from traditional ones, it shares a couple of similarities with them. One is that it goes through regular bull runs when investors are optimistic, and the market sentiment is positive. Altseason usually occurs during bullish periods, when digital currencies other than Bitcoin spike in price and investors are more interested in purchasing less expensive assets like Ripple, Solana, Dogecoin, or Shiba Inu. This period has implications for the entire market and provides investors with diverse revenue opportunities.
Digital currencies that might rally during the altseason
Several altcoins have promising fundamentals, technological advancements, and community support in the lead-up to the next alt season, making them likely candidates to perform well, so it might help to check them out.
Ethereum (ETH)
Ethereum remains the most prominent altcoin, maintaining its status as the leading smart contract platform. Since the rollout of Ethereum 2.0 and its ongoing transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism, Ethereum has been addressing its scalability and energy consumption issues. The platform hosts a substantial portion of decentralized finance (DeFi) and non-fungible token (NFT) ecosystems, making it indispensable in the crypto space. Furthermore, the upcoming “sharding” technology aims to boost Ethereum’s scalability further. With its strong developer community and vast number of projects built on its network, Ethereum is expected to continue performing well in the next altseason.
Polkadot (DOT)
Polkadot is a multichain platform designed to facilitate the interoperability of various blockchain networks. It allows different blockchains to exchange information and work together, overcoming the limitations of isolated blockchains. The architecture, known as “parachains,” enables Polkadot to process multiple transactions simultaneously, enhancing efficiency. Its utility in creating an interconnected ecosystem appeals to developers, making it a popular choice for decentralized applications (dApps). With the increasing need for cross-chain communication and scalability, Polkadot is well-positioned to benefit from the next altseason as blockchain adoption grows.
Cardano (ADA)
Cardano is another strong contender, focusing on scalability, security, and sustainability. It has gained traction as a peer-reviewed and highly researched blockchain platform. Its recent Alonzo upgrade brought smart contracts to the network, allowing it to compete more directly with Ethereum. Cardano’s focus on real-world use cases in finance, governance, and education, particularly in developing regions, adds a layer of long-term value. With a large and dedicated community, Cardano’s continued progress in establishing partnerships and technological advancements makes it a strong altcoin to watch in the next altseason.
Chainlink (LINK)
Chainlink is a decentralized oracle network that allows smart contracts to interact with real-world data, enabling complex decentralized applications across finance, insurance, gaming, and more. Oracles like Chainlink are critical because they bring off-chain data into blockchain environments, enhancing smart contract functionality. As the DeFi space expands, the demand for reliable oracles like Chainlink will grow, positioning LINK as a likely performer in the next altseason.
Solana (SOL)
Solana has established itself as one of the fastest blockchain networks, handling thousands of transactions per second with minimal fees. Known for its high-performance capabilities, Solana has attracted a range of DeFi and NFT projects, increasing its network’s usage and community size. The platform’s unique “proof-of-history” consensus, combined with proof-of-stake, allows it to handle transactions faster and at a lower cost compared to Ethereum. If scalability remains a crucial factor for developers and users, Solana’s high-speed infrastructure may attract more applications, making it a top performer in the next altseason.
Avalanche (AVAX)
Avalanche has emerged as a competitor to Ethereum, offering high transaction throughput and low latency. The platform uses a unique consensus mechanism that combines elements of proof-of-stake to achieve faster finality. Avalanche has garnered attention due to its compatibility with Ethereum, which allows developers to move dApps to Avalanche’s ecosystem seamlessly. With continued developments and its increasing popularity in the DeFi sector, AVAX is well-poised to perform well in the next altseason.
Polygon (MATIC)
Polygon is a Layer 2 scaling solution for Ethereum, designed to improve the efficiency and speed of Ethereum transactions. With the growing popularity of DeFi and NFTs, Ethereum’s network often becomes congested, leading to high gas fees. Polygon alleviates these issues by providing faster and cheaper transactions, which has led to a surge in dApps migrating to or building on Polygon. As a complementary network to Ethereum, Polygon could see substantial gains if Ethereum experiences high demand, making it a strong contender in the upcoming altseason.
The next altseason will likely see a mix of well-established platforms and innovative, high-performing networks taking the spotlight.
