Altcoin Season Isn’t Dead Yet

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Altcoin Season Isn’t Dead But It Won’t Look Like 2021 Again

Key Takeaways:

  • Wedson says a 2021-style altcoin boom won’t happen without major capital returning to crypto.
  • He expects future altcoin seasons to be small, theme-based surges rather than full-market explosions.
  • Bitcoin outperforming most assets pushed the index back to “Bitcoin season,” despite pockets of altcoin strength.

According to market analyst Joao Wedson, the cryptocurrency industry has evolved rapidly in the past three years, to the point where the traditional idea of an ‘altcoin season’ no longer accurately describes what’s happening.

Capital Drives Altcoin Seasons – And Capital Has Moved Elsewhere

Wedson believes that every major altcoin bull run has been fueled by a large influx of new money. He points out that between 2020 and 2022, crypto and Web3 companies received billions in funding, which then spread throughout the market. He argues that without this significant investment, it’s much less likely to see altcoins rise together in a coordinated way.

According to our Weekly and Daily Altcoin Season Index, Bitcoin is currently dominating the market. However, a handful of the top 20 altcoins are holding their value relatively well, and this is starting to cause the index to show signs of recovery.

In general, from 2022 to 2025 we only saw tiny,…

— Joao Wedson (@joao_wedson)

Currently, most investment isn’t going towards foundational blockchain technologies or decentralized finance. Instead, it’s heavily focused on artificial intelligence. This isn’t due to a change in beliefs, but rather a financial decision. Investors are simply seeking the areas with the biggest potential for profit, and at the moment, that’s AI, not cryptocurrency.

Why the Index Alone Doesn’t Tell the Full Story

Although the Altcoin Season Index now indicates a “Bitcoin season,” Wedson advises against viewing it as a simple indicator. He points out that several of the top 20 cryptocurrencies actually fell less than Bitcoin during the recent market downturn – a sign that altcoins may soon gain strength, rather than weaken.

He wasn’t surprised to see Bitcoin cause the market to drop. He believes it’s more important to focus on which investments bounce back quickly, rather than simply which ones decline.

Forget the 2017 and 2021 Playbook

Previous surges in smaller cryptocurrencies, or ‘altcoins,’ happened because of huge amounts of money flowing into the market. Without similar levels of investment, the next period of growth will likely be different. Wedson predicts we’ll see specific sectors of the crypto market do well, rather than all cryptocurrencies increasing in value simultaneously.

Looking at the past few years shows a clear pattern: we’ve seen surges in popularity with meme tokens, then AI-focused cryptocurrencies, followed by tokens representing real-world assets, and gaming projects. These weren’t random events; they offer a glimpse into how altcoin markets operate when investors are carefully choosing where to put their money, rather than broadly investing in everything.

The Next Altcoin Season Will Be Narrow, Not Universal

Wedson isn’t suggesting people stop investing in altcoins, just that they need to be realistic about what to expect. He believes that without significant investment from large companies, we’ll likely see smaller, temporary price increases based on specific trends, rather than a big market boom like we saw in 2021.

Instead of wondering *if* altcoins will surge again, investors should consider whether they’re ready for a different type of altcoin rally than the ones they’ve seen in the past. The market may look quite different this time around.

This article is for informational purposes only and shouldn’t be taken as financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Before making any investment choices, be sure to do your own research and talk to a qualified financial advisor.

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2025-11-23 11:11