What is alt season? Is alt season really coming?

Whenever Bitcoin's dominance declines, mid-cap stocks double overnight, and crypto Twitter starts to boil. "Altcoin season" is the popular term for this exciting window of opportunity. But what exactly triggers altcoin season, how do you measure it, and most importantly, if the next altcoin season is indeed approaching, how should you position yourself at the gate?

Definition of Altcoin Season

Altcoin season refers to a market phase where a basket of altcoins—all non-BTC assets—outperform Bitcoin for several consecutive weeks. Analysts often use the Altcoin Season Index: if 75% of the top 50 tokens have outperformed BTC in the past 90 days, the indicator flashes "Altcoin Season." This surge is often in line with Bitcoin cooling off after a strong rebound; sidelined capital is hunting for higher beta values in Layer-1, meme coins, and DeFi tokens.

| Indicator | Why is it important for altcoin season? | | ------------ | ------------ | | Bitcoin Dominance (BTC.D) | Bitcoin often continues to drop below 48% before rebounding | | ETH/BTC trading pair | The rise of ETH/BTC indicates that risk appetite is spreading to major cryptocurrencies, followed by mid-cap cryptocurrencies. | | Funding Rate Differential | The positive financing of altcoins and the neutral financing of BTC indicate leverage rotation. | | Total Market Cap | Breakthrough of 200-day MA confirms new funds entering non-BTC, non-ETH assets. |

The market heatmap of the main gate overlays these indicators to help traders identify early momentum changes.

Historical Mode and Catalyst

1. Q4 2017 - ICO Frenzy: ADA, XLM, and NEO surged by 300-800% within six weeks.

2. Q1 2021 - DeFi summer overflow: SOL and MATIC became 100 bucks, while BTC fluctuated.

3. Q1 2024 - AI Narrative: As the ChatGPT hype peaked, FET, AGIX, and RNDR tripled. Common catalysts? New narratives combined with the exhausted rise of Bitcoin.

Is the Altcoin Season Coming in 2025?

• The brilliance after Bitcoin halving -- Historically, Bitcoin tends to consolidate for 2-3 months after halving, releasing liquidity for alternative coins.
• Spot ETH ETF speculation -- Approval rumors drive ETH/BTC higher, which is a typical signal before the redemption season.
• Layer-2 token unlocks -- Airdrops from Starknet, Scroll, and Blast have injected billions into traders' wallets seeking new opportunities. The altcoin season index is currently at 64 / 100, not yet fully in season, but close to the critical point.

How to Position on the Gate

1. Build the core basket Cross-domain decentralized investment -- AI tokens (FET, WLD), L2 tokens (ARB, OP), GameFi (IMX, PIXEL). Gate.io lists over 3,800 tokens, providing granular investment opportunities.

2. Using perpetual futures for hedging Short BTCUSDT-Perp when BTC.D rebounds; funding income offsets alternative spot risks.

3. Set up automatic investment When BTC.D < 50%, Gate's circular purchase tool can inject DCA into your chosen alternative index.

4. Track funds and top earners The "funding dashboard" at the entrance will prominently display when the funding of alternative coins exceeds that of BTC -- this is an early sign of speculative rotation.

The Risks of Chasing the Shanzhai Season

• Liquidity trap -- Many small-cap stocks have low order volumes; be sure to check the depth.
• Narrative expiry -- Artificial intelligence or popular themes may fade overnight; use trailing stop loss.
• Macroeconomic Shock - The Fed's hawkish stance or rejection of ETFs could lead to a rapid influx of capital into Bitcoin or stablecoins.
• Smart contract vulnerabilities - Higher TVL during off-season can attract hackers; verification audits. Allocate scale wisely and maintain a USDT buffer to cope with sudden withdrawals.

Final Thoughts

The altcoin season can change a moderate investment portfolio, but timing and discipline are crucial. Monitor Bitcoin's dominance, ETH/BTC and funding rate spreads; layer into strongly catalyzed sectors; leverage Gate.io's deep liquidity, futures hedging, and auto-invest features to navigate the rollercoaster. Whether it's next month or next quarter, preparation is better than prediction—so start researching now and let the market confirm the signals.

Author: Cinnie, Gate.io researcher Translator: Sherry S. *This article only represents the author's views and does not constitute any trading advice. Investment carries risks, and users should make cautious decisions. *The content of this article is original and the copyright belongs to Gate.io. If reprinted, please indicate the author and source; otherwise, legal responsibility will be pursued.