Altcoin Season Is Coming: ETH, XRP, SOL, ADA and SHIB Are Primed to Outperform BTC

According to cryptocurrency traders and investors, altcoin season, a period when alternative cryptocurrencies outperform the leading asset Bitcoin, is expected to kick off anytime soon.

Cryptocurrency traders and investors have been eagerly awaiting the arrival of altcoin season, a period when alternative cryptocurrencies outperform the leading asset Bitcoin. Recent market developments, including an indication of Ethereum (ETH) bottoming and several major altcoins showing promising signals, suggest that this season could be kicking off soon.

On-chain analytical platform Cryptoquant's analysis of the relative price of the second-largest cryptocurrency, compared to Bitcoin, might have seen its bottom.

“Relative price of ETH bottomed out and major altcoins are showing good signs. Especially, the ratio of ETH volume to BTC volume reached 0.89, the highest level since August 2024.”

Key Altcoins Showing Recovery Signs

The ETH/BTC price ratio has skyrocketed by 38% over the last week. This upward movement comes after the ratio hit the lowest level recorded since January 2020.

According to CryptoQuant, the ratio level has indicated a relative bottom for ETH and furthered the larger altcoin outperformance.

“ETH entered an extreme undervaluation zone relative to Bitcoin, based on the ETH/BTC MVRV metric, for the first time since 2019. Similar conditions in 2017, 2018, and 2019 were followed by periods where ETH outperformed Bitcoin significantly, signaling strong mean-reversion potential.”

This pattern extends beyond Ethereum. XRP’s technical indicators show oversold conditions similar to those seen before its previous major rallies, while Solana’s on-chain metrics demonstrate continued network growth despite price suppression. Cardano’s development activity remains high, suggesting fundamental strength that could translate to price appreciation once market sentiment shifts.

Even meme coins are participating in the early signs of altcoin season. Despite its speculative nature, Shiba Inu has maintained strong community engagement and has been developing utility through its ecosystem expansion, including the ShibaSwap DEX and upcoming layer-2 solution.

Technical Analysis Confirms Bottom Formation

Another key event affirming the presence of altcoin season is the price in the relative ratio of ETH’s spot trading volume, which hit 0.89, a level last seen in August 2024.

As the analysis highlighted, this development points to an increase in traders, holders, and investors’ exposure to ETH in comparison to Bitcoin.

The analysis further highlighted that this volume surge isn’t limited to Ethereum. XRP has seen increased whale activity, with large transactions suggesting institutional accumulation. Solana’s trading volume has maintained healthy levels despite market volatility, while Cardano has experienced renewed retail interest.

It bears mentioning that this pattern was experienced from 2019 to 2021, a time when ETH outpaced Bitcoin by increasing its value by four times its price. During that same period, other major altcoins experienced even more dramatic gains, with some assets delivering 10x to 100x returns as the altcoin season peaked.