For a while now, Bitcoin has been the cryptocurrency that’s been controlling the market, and more and more people are trying to figure out whether it is the death of the altcoins (all cryptocurrencies outside of Bitcoin). Currently, Bitcoin’s dominance has hit the highest level since the year 2021, which is at around 60.4%. Ultimately, this has led many analysts to doubt if we will have an altcoin season any more, or even hope for 2025.
Below are four key reasons why altcoin enthusiasts should not give up the hope just yet.
1. The Bitcoin Dominance is High, but It Could Be Temporary
Bitcoin‘s dominance has steadily been rising and the altcoins are losing out to Bitcoin. Since 2021, altcoins have been going through the trend of temporary spikes that turned out to be merely precursors of Bitcoin’s strength. But this doesn’t mean the altcoin season is dead forever. According to the analysts, Bitcoin’s dominance rise may be in correlation with a longer cycle, where after Bitcoin stabilizes or peaks, it’ll end up setting some space for the altcoins to shimmer once again. The key thing to remember is that markets can change and that which goes up too quickly may falter as often as it will rise.
2. Institutional Interest in Altcoins Is Growing
Though Bitcoin has taken more of the institutional interest so far, altcoins are beginning to capture investor interest too. Ethereum, Solana or XRP too can still outperform Bitcoin. In the development of altcoin ETFs (Exchange Traded Funds), there is an increasing institutional interest in altcoins. Institutional investors might find it easier to get into the altcoin market with these ETFs which could lead to another altcoin feeding frenzy that brings the next wave of capital into altcoins.
3. Major rally is a historic Altcoin feature.
The current rise of altcoins may be a sign of things to come because the market has seen explosive spikes of altcoins in the past even in the midst of Bitcoin quickly gaining dominance. Take for instance, where altcoins had massive upshoots outshining over Bitcoin in 2017 and 2021. CryptoGoos, among others, predicts this historical pattern to repeat and altcoins to have another rally in 2025. However, possible catalysts to this rally are the development of blockchain technologies and rising use of altcoins on use cases like decentralized finance (DeFi), non fungible tokens (NFTs) and gaming.
4. Altcoins May Be Repositioned with Upcoming Developments
Major developments that would benefit altcoins could occur as early as 2025. For example, altcoin ETFs approval and upcoming Pectra upgrade of Ethereum are likely to stimulate the renewed interest in altcoins. Altcoin ETFs on assets such as Solana and XRP, or Dogecoin, are also slated to receive approvals, following the same tropes as described above, and they might receive regulatory approval in 2025 as well.
It is important because that will help to legitimize the altcoins, encourage more investors to get into it, and bring altcoins back to the public eye.
Conclusion: Hope for Altcoins in 2025
Bitcoin currently dominates, but there is hope for altcoins in the future. Increasing institutional interest, history and some upcoming developments could contribute to restarting the altcoin season. For now, the altcoin market may be on pause, but it’s still too early to predict whether altcoins are dead forever. However, if we start seeing a trend in the crypto market, then 2025 may indeed be the year of the altcoins.
Also read: Crypto Airdrops Explained: What They Are and How to Claim Yours
