Altseason 2025: The Selective Boom of Altcoins and What It Means for Investors

 

The cryptocurrency market is once again buzzing with speculation about an upcoming altseason in 2025. However, this time, experts warn that not all altcoins will benefit equally. Ki Young Ju, CEO of CryptoQuant, suggests that only projects with strong fundamentals and solid revenue models will thrive, while many other altcoins may not survive the next market cycle.

A More Selective Altseason in 2025

Traditionally, altseasons have been characterized by broad surges in altcoin prices across the board. However, Ju argues that this era of indiscriminate gains is over. In a post on X (formerly Twitter) on February 25, he stated that most altcoins are unlikely to endure the upcoming market conditions. Instead, tokens with the potential for Exchange-Traded Fund (ETF) approvals, consistent investor interest, and sustainable economic models may emerge as the real winners.

Signs of Market Capitulation?

The recent downturn in the crypto market has fueled discussions about a potential market capitulation. Juan Pellicer, a senior research analyst at IntoTheBlock, noted that 24% of the top 200 cryptocurrencies have reached their lowest levels in over a year. This has raised concerns about whether a sharp sell-off is on the horizon.

Pellicer highlighted that the latest correction, marked by significant liquidations (particularly in assets like Solana), has pushed the total crypto market valuation down to $3.13 trillion. In traditional financial markets, capitulation occurs when panic selling reaches its peak, often setting the stage for a strong recovery as weak hands exit and new capital flows in.

Which Cryptocurrencies Could Secure ETF Approvals?

A major catalyst for altcoin success in 2025 could be the approval of new cryptocurrency ETFs. As of late February, at least seven cryptocurrencies are under review by U.S. regulators for potential ETF listings. These include:

• Cardano (ADA)
• Solana (SOL)
• XRP (XRP)
• Litecoin (LTC)
• Hedera (HBAR)
• Dogecoin (DOGE)
• Polkadot (DOT)

Additionally, the U.S. Securities and Exchange Commission (SEC) has received ETF applications for more unconventional assets, such as the Official Trump (TRUMP) token and Bonk (BONK).

Are We Still in the Early Stages of Altseason?

Despite some price recoveries, Marcin Kazmierczak, co-founder and COO of RedStone, warns that the current rally does not necessarily signal a full-fledged altseason. He points out that daily active addresses on most altcoins remain significantly lower than their peaks in 2021.

Kazmierczak suggests that the price gains seen so far might be part of an early speculative phase rather than the start of widespread adoption. If history is any guide, true altseason typically kicks in when both price appreciation and user adoption rise in tandem.

What Investors Should Watch in 2025

For investors looking to navigate the 2025 altseason, the focus should be on:

1. Projects with real-world utility – Altcoins with strong fundamentals and growing user bases are more likely to succeed.
2. Potential ETF approvals – Institutional interest in regulated investment vehicles could drive demand for specific tokens.
3. Market sentiment and adoption trends – Tracking active addresses and developer activity can provide key insights into which coins have staying power.

As we approach 2025, the crypto landscape is evolving. While the days of indiscriminate altcoin gains may be over, opportunities remain for those who can identify the real winners in this selective altseason.