The Next Altcoin Season Could Be the Biggest One Yet

A lot of analysts and crypto fans believe it's coming, but some are also convinced that when it does arrive, it will be the biggest one yet.

The crypto industry has been buzzing about the speculation of the new altcoin season for some time now. A lot of analysts and crypto fans believe it’s coming, but some are also convinced that when it does arrive, it will be the biggest one yet.

One of those is Dan Krupka, head of Coin Bureau Research. He shared a video on Coin Bureau Trading's YouTube channel, discussing his thoughts and expertise on why this altcoin season just might explode (in a good way). For starters, Krupka highlights spot Ethereum ETF approvals and rate cuts by the Fed, which are expected to come later this year. Additionally, crypto-friendly sentiment is increasing, especially in the US, providing further fuel to the possibility of an altcoin season. Plus, the potential ETF applications for Solana, Layer-2 innovations, and growing user bases on new chains could all play an important role in a possibly huge altcoin season.

Then, there is the fact that TikTok and YouTube crypto content keeps on growing, a notable trend among the younger generations.

Krupka mentioned retail participation and how it hasn't fully returned, indicating that this isn't the final leg of the bull run. Altcoin season typically follows Bitcoin and Ethereum rallies once retail re-enters.

Furthermore, several altcoin sectors have strong potential that may contribute to the altcoin season boost. These include Layer 1s such as Ethereum, Solana, and Avalanche; Layer 2s like Arbitrum, Optimism, and Base; AI coins (SingularityNET, Render, Bittensor, etc.); Privacy coins (Aleph Zero, Monero, and the rest); DePIN; real-world assets; and so on.

Bitcoin Dominance

As mentioned, altcoin season depends on Bitcoin, or rather, its dominance. Bitcoin dominance (and Ethereum's to a point) is a classic indicator of altcoin rotations. The strength of these two cryptocurrencies can signal phases of altcoin outperformance, or, to be more precise, the Ethereum/Bitcoin chart.

Naturally, Bitcoin is still leading, and that likely won't ever change. However, Ethereum's dominance increased by around 2% compared to last month, while Bitcoin stayed pretty much the same, which may suggest that altcoin season is brewing but not quite there yet.

Lastly, the video notes that during the 2020-2021 bull run, retail attention surged because people were locked down and had more time to learn about investing. Most retail investors from 2021 and early 2024 front-ran the market, expecting a repeat of the mentioned bull run cycle. Now, they're possibly out of altcoins or in Bitcoin, making them potential buyers and not sellers for the next rally.