Altcoin Season Incoming… or Just Another Fakeout? Here's What the Data Says
Altcoin season — a phrase that gets crypto traders buzzing with excitement or rolling their eyes with skepticism. Every few months, the community starts asking: "Is altcoin season finally here?"
In 2025, with Bitcoin's dominance fluctuating and new narratives emerging, this question is more relevant than ever. But how can we tell if it’s really happening — or if it's just another market fakeout?
Let’s break down the current data, on-chain signals, and market psychology behind what could (or could not) be the next altcoin season.
📊 What Is an Altcoin Season, Really?
Altcoin season refers to a period in the crypto market when altcoins (any crypto that's not Bitcoin and stablecoins) outperform Bitcoin in terms of price growth. Typically, this happens after a strong BTC rally, when investors rotate profits into riskier assets.
Signs of an altcoin season include:
- Bitcoin dominance dropping significantly
- ETH/BTC ratio rising
- Explosive growth in mid-cap and low-cap coins
- Social media hype shifting from BTC to altcoins
The classic rule of thumb? When 75% of the top 50 coins (excluding BTC and stablecoins) outperform Bitcoin over a 90-day period, that’s your cue.
📉 Bitcoin Dominance Still Strong — But ETH Is Catching Up
Despite growing enthusiasm around altcoins, Bitcoin dominance remains firmly above 60% in July 2025, holding strong after reaching multi ATHs this year and even this month. This continued strength shows that BTC is still the market’s anchor — but signs of an altcoin rotation are emerging.
Ethereum, in particular, has shown impressive performance recently, with its price more than doubling over the past three months. This surge has narrowed the ETH/BTC gap and signaled a potential shift in momentum. If Ethereum continues to outperform Bitcoin, it could ignite a broader move into altcoins — a pattern we’ve seen in previous cycles.
However, altcoin traders should remain patient. A sustained altcoin season typically requires both BTC dominance to decline and ETH/BTC to trend upward consistently. We’re not quite there yet, but the setup is starting to look promising.
🚀 AI, RWA & Meme Coins: Leading the Charge
While the broader altcoin market has been sluggish, certain niches are already showing signs of life:
- AI Tokens like FET, AGIX, and RNDR are outperforming most of the market.
- Real-World Asset (RWA) tokens such as ONDO and POLYX are gaining attention.
- Meme coins continue to defy logic with unpredictable surges — think DOGE, PEPE, BONK and newcomers like SOSO or TRUMP.
This fragmented performance suggests selective pumps rather than a coordinated altcoin season.
📉 Beware of Rotation Traps and Liquidity Shifts
One trap traders often fall into is assuming altcoin strength during short-lived pumps. In reality, market makers and whales often use these mini-pumps to exit positions or trap retail traders.
Liquidity on many exchanges remains thin for low-cap altcoins, and market-wide sentiment is still cautious. Without strong volume, broad altcoin rallies are hard to sustain — making it easier for "altcoin season" narratives to become fakeouts.
🎯 Altcoins Signals from Telegram Channels
At DavosTraders, we monitor sentiment and signals across hundreds of assets daily. Our VIP crypto trading signals have identified several breakout setups in key altcoins, but we’re still in a "selective sniper" phase — not a full-blown altcoin rally.
In fact, many of our free signals (shared on our public Telegram channel) have highlighted fakeouts in coins like SUI, APT, and ARB in the last two weeks alone. The key? Timing and context.
🧠 Final Thoughts: Stay Cautious, Stay Ready
Are we on the brink of an altcoin season? Possibly — but not convincingly. The current environment feels more like a "rotational tease" than a full shift in market momentum.
Still, opportunities exist for those who know where to look and when to act. Many altcoin projects show real innovation, but the market is flooded with hype and scams, especially in low-cap ecosystems. That's why combining on-chain analysis, sentiment tracking, and real-time signals is crucial.
If you’re tired of chasing pumps and missing exits, join our Telegram channel @davostraders. We share daily market updates, altcoin setups, and real signals — helping you navigate crypto cycles like a pro.