What If This Cycle Misses the Altcoin Season? A Theory That Raises Concerns.

What If This Cycle Misses the Altcoin Season? A Theory That Raises Concerns.

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As the cryptocurrency market fluctuates, speculation surrounding the absence of an altcoin season in the current cycle is growing. While Bitcoin nears its all-time highs, analysts suggest that the accompanying altcoins are not performing as expected, leading to a debate on whether the much-anticipated altseason will occur.

Will There Be No Altseason During the 2025 Cycle?

Bitcoin has recently reclaimed the $100,000 mark, surpassing its all-time high (ATH) from just days ago, a performance that has seen Bitcoin trading at its highest levels for months. Contrarily, altcoins remain largely absent from this bullish trend, with notable exceptions like Solana and XRP.

A well-known analyst on X has proposed a concerning theory: the altcoin season may not manifest in this bullish cycle. According to Mr. Martinez, this potential outcome stems partly from the overwhelming number of altcoins in existence. As of 2025, millions of cryptocurrencies are in circulation, a sharp contrast to just a few hundred in 2021.

This surge in the number of cryptocurrencies correlates with the surprising ease of creating new tokens, such as memecoins. For instance, on networks like Solana, it’s as simple as connecting a wallet to a platform. The analyst questions the utility of so many cryptocurrencies, noting that many have no evident purpose.

The fundamental issue raised by this theory is liquidity dilution. This phenomenon was notably observed with the launch of tokens such as $TRUMP and $MELANIA. The Trump family’s memecoins led to significant price increases while simultaneously causing declines in many existing altcoins due to the redistribution of liquidity among numerous options.

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Investors have limited choices for acquiring liquidity: they either reinvest capital or sell other cryptocurrencies. The latter option can unfortunately trigger a decrease in the value of the sold crypto if the volume is substantial. By spreading liquidity across countless altcoins, the chances of significant gains are reduced for a select few.

An Unprecedented Cycle for Altcoins?

The CEO of CryptoQuant echoes this sentiment, albeit with a slightly optimistic twist. He believes that an altcoin season will occur, but it will differ drastically from those of previous cycles.

He asserts that there is no viable way for all altcoins to experience value surges simultaneously. In his view, only a select few will attain substantial gains and lead the market.

Assets like XRP, XLM, HBAR, SOL, ADA, AVAX, and DOGE have already demonstrated remarkable increases, with some even surpassing their previous ATHs. Consequently, the upcoming altcoin season may be limited to a handful of digital assets.

This situation in the cryptocurrency environment parallels current developments in the United States, where former President Donald Trump has expressed his desire to establish the country as a hub for digital assets. He has voiced strong support for promoting cryptocurrencies created in the U.S., leaving open questions about how this focus might influence the forthcoming altseason.

Meanwhile, a notable presale is concluding successfully, featuring “Wall Street Pepe,” a new memecoin inspired by Pepe the Frog, promoting the creation of a community of small wallets that can compete with larger investors.

Warning: Cryptocurrencies are a high-risk asset class. This article is for informational purposes only and does not constitute investment advice. You may lose all of your capital.

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Further Reading:

  • SOL Resumes Its Upward Trend: Is an ATH Possible?
  • Concerns Surrounding Ethereum Foundation: Vitalik Buterin Speaks Out
  • XRP Records: Is This a Sign Marking the Start of Altcoin Season?

Wall Street Pepe

  • An affordable entry price
  • Dynamic and generous staking rewards
  • A strong focus on empowering holders
Project Launched
November 2024

META
Meme

Purchase Methods
  • Ethereum
  • USDT
  • Credit Card

Solaxy

  • More scalable than Solana
  • Multi-chain potential project
  • No congestion or failed transactions
Project Launched
November 2024

META
Multi-Chain

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