Altseason: when capital leaves Bitcoin and moves into altcoins

Every participant in the crypto market is waiting for the moment when digital assets like Ethereum, Solana, and other projects start surpassing Bitcoin in growth momentum. This phenomenon is called an altseason — a period when smaller cryptocurrencies demonstrate explosive potential and attract a wave of specialized capital.

Why Altseason Becomes the Focus of Traders’ Attention

Potential for Multiplying Capital

History shows that during such cycles, even young projects grow by 300–500% in a short period. In 2017, XRP started from a few cents and reached $3.84, Litecoin showed similar dynamics, and Ethereum turned small investments into serious sums. That period demonstrated how newcomers could invest $100 and, after a few months, expect tenfold returns — given the right choice and timing.

Technological Revolutions and First Movers

Each wave of altseason brings new technological trends:

• Decentralized finance protocols (DeFi), which restructured the entire lending landscape;
• Unique digital assets (NFT), opening a new dimension for artists and collectors;
• Entertainment ecosystems with earning opportunities (GameFi and metaverses);
• Solutions for faster transaction processing (L2 chains);
• Projects based on artificial intelligence and machine learning.

Those who manage to position their capital before the trend emerges often reap the biggest rewards.

Panic from Missed Opportunities

Crypto market psychology is simple: when an obscure token grows 10 times in a week, others experience FOMO (fear of missing out). This triggers a flood of newcomers who don’t want to repeat the fate of those who “missed the next Ethereum.” The result is a massive influx of fresh money into altcoins.

Cyclical Patterns

Altseason usually develops in a logical sequence: when Bitcoin stabilizes after active growth, large holders take profits and redirect funds into more aggressive assets. This is a natural process of capital redistribution within the ecosystem.

How Past Cycles Looked

2017–2018: The Era of Smart Contracts and ICOs

The first massive altseason gave rise to a new crypto culture:

• Ethereum jumped from $8 to over $1,400
• Ripple (XRP) made a magical leap from $0.006 to $3.84
• Projects like NEM, NEO, and IOTA delivered returns from 10x to 100x
• The crypto community first widely heard about smart contracts and tokenomics

2021: The Rise of Decentralized Services

The second major altseason cycle focused on DeFi and gaming:

• Platforms Uniswap, Aave, Compound, Sushi, and PancakeSwap became dominant players;
• Solana (SOL) grew from $2 to over $200;
• Axie Infinity (AXS) — the flagship of GameFi — surged from $0.50 to $160;
• The wave of popularity boosted projects related to metaverses and “Play-to-Earn” mechanics.

How to Recognize That Altseason Has Arrived

Analysts monitor Bitcoin Dominance — Bitcoin’s share of the crypto market. When this indicator drops, it signals that investors are reallocating funds into altcoins. Simultaneously, trading volumes and the number of new tokens in trending sections of CoinMarketCap increase.

What to Pay Attention To

Altseason is a time of enormous opportunities but also extreme risks. Experienced participants prepare in advance: they build portfolios, track on-chain metrics, and distribute capital among assets. Beginners often learn through trial and error, sometimes losing, sometimes achieving exponential capital growth.

If you’re waiting for the next altseason — remember a simple truth: any opportunity for big earnings is accompanied by significant risk. A cool head, a clear distribution plan, and proper position management are what separate successful traders from those who go broke.