The long-anticipated “altseason” may finally be here. This week, altcoin market indicators surged to their highest levels since December 2024, fueling speculation that the biggest altcoin rally in years is about to begin.
According to Blockchain Center’s Altcoin Season Index, a reading of 78 out of 100 confirms altseason conditions, when 76% of the top 50 crypto assets outperform Bitcoin over a 90-day period. CoinGlass and CoinMarketCap show similar results, with readings of 76 and 67, respectively.
Market sentiment has shifted swiftly, with altcoins stealing momentum from Bitcoin, which has recently consolidated around $114,000. The altcoin market cap, excluding Bitcoin and stablecoins, now stands at $1.63 trillion, just shy of the $1.64 trillion peak seen in late 2024.
ETH's price trends to the upside on the daily chart. Source: ETHUSD on Tradingview
Is the Altseason a Sign of a Major Breakout
Crypto traders are increasingly convinced that the market is on the cusp of a new wave of parabolic growth. Analyst “Daan Crypto Trades” noted that the altcoin cap is approaching price discovery territory, which historically sparks sharp rallies.
“With the altseason index at its strongest reading in nine months, traders are beginning to lean risk-on again,” said educator Karan Singh Arora. Other traders, including Ash Crypto, suggest altcoins could soon enter “phase 3” of altseason, a stage often marked by explosive price gains across mid- and small-cap tokens.
This optimism is further supported by speculation around U.S. Federal Reserve policy. With prediction markets now pricing in the likelihood of a 50-basis-point rate cut at the September 17 meeting, liquidity conditions may shift in favor of risk assets, such as crypto.
Historically, lower interest rates have triggered capital inflows into altcoins following Bitcoin’s initial gains.
Altcoins Already on the Move
Several major altcoins are already flashing strong signals. Dogecoin (DOGE) has climbed above $0.25 with a 5% daily gain, while Avalanche (AVAX) jumped nearly 18% to hit $29, its highest level since January.
Other notable movers include Hyperliquid (HYPE), Stellar (XLM), Litecoin (LTC), and Toncoin (TON), each posting gains above 3% in the past 24 hours. If momentum continues, traders believe the market could replicate, and even surpass, the explosive altseason seen in late 2021.
With the altseason index surging and the Fed’s decision looming, all eyes are now on whether 2025 will deliver the most powerful altcoin rally since 2024.
Cover image from ChatGPT, ETHUSD chart from Tradingview
