While altcoins have experienced a huge rise in recent days, led by Ethereum (ETH), the expectation of an altcoin season is increasing in the market.
The strong performance of altcoins is attributed to strong institutional buying, with data showing a recent surge in institutional funds into Ethereum, XRP, and Solana.
In addition to increased institutional inflows, the passage of the US stablecoin regulation law, the GENIUS Act, is also cited as one of the factors fueling the altcoin bull run.
At this point, analysis companies and analysts expect the altcoin season to begin soon.
Is Altcoin Season Near?
Analysis firm Swissblock noted that Bitcoin (BTC) dominance is falling and funds are shifting from BTC to altcoins.
“When this happens, when BTC dominance declines and funds generally shift towards altcoins, a strong altcoin season occurs.
Currently, as Bitcoin's upward momentum slows, capital rotation has begun, and if this trend continues, we could be entering a full-fledged altcoin season.
Bitfinex analysts also believe an altcoin rally is imminent. They noted that the current situation could be the start of an altcoin season, with investors more interested in altcoins than BTC.
“Investors are shifting their funds from Bitcoin to altcoins to capture further upside potential.
This signals the start of an altcoin-centric period in the overall bull market.”
While analysts at Bitfinex and Swissblock are expecting an altcoin rally, one analyst argued that it is difficult for altcoins to experience a sudden surge unlike previous cycles.
“As Ethereum starts to rally, there's a high probability that liquidity will flow into altcoins more broadly, but at the same time, it will be difficult to see sudden and sharp gains of more than 100x for the majority of altcoins as in the past. The uptrend will likely continue for altcoins with solid fundamentals, such as a real user base and revenue generation,” said Kyung-pil Jang, Head of Research at Xangle.
*This is not investment advice.
