Altseason: What it is and how to make money on altcoin growth

The cryptocurrency market is full of opportunities for profit. One of the most interesting periods is the altseason. This is the time when altcoins demonstrate active growth, often outpacing Bitcoin. But how can one tell when altseason has begun? Most importantly, how can one profit from it? In this article, we will analyze what altseason is, its signs, and strategies for successful investments.

What is altseason?

Altseason is a period in the cryptocurrency market when altcoins (all cryptocurrencies except Bitcoin) grow faster than Bitcoin itself. During these moments, investors can achieve significant profits, as some coins can soar in value exponentially. However, one must not forget the risks: altcoins can fall just as quickly.

Signs of altseason

For example, in 2021, Solana (SOL) rose from $20 to $260 within just a few months. Analysts note that altseason often begins when Bitcoin stabilizes or declines, leading capital to flow into altcoins and stimulate their growth.

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Why is altseason important for investors?

During altseason, it is possible to achieve high profits. However, such opportunities come with increased risks: altcoins can drop sharply in price.

In November 2024, the altseason index reached 78 out of 100, indicating the start of a new altseason.

During this period, altcoins like Ordi (ORDI), Sei (SEI), and Injective (INJ) are showing significant growth, outperforming Bitcoin.

Thus, altseason presents investors with both great opportunities for profit and considerable risks. It is crucial to closely monitor market indicators and make informed decisions.

History of altseasons

Altseasons play a crucial role in the development of the cryptocurrency market. They provide investors with unique opportunities for high profits. For instance, during altseasons, prices of many tokens can increase dramatically, creating possibilities for both long-term and short-term investments.

The history of altseasons is filled with vivid events. The first significant altseason occurred in 2017 when Bitcoin’s market share sharply declined due to the explosive growth of ICOs — initial coin offerings. Projects like EOS and Tezos attracted investors’ attention, increasing interest in altcoins.

The early altseasons: the emergence of the crypto market

In 2017, altcoins showed significant growth for the first time. Among the leaders were Ethereum, Ripple, and Litecoin. The table below shows their price growth:

After 2020, a new era began for altcoins. The growth of decentralized finance (DeFi) and non-fungible tokens (NFTs) became catalysts for the popularity of altcoins like MATIC, SOL, AVAX, and DOT. These projects offered new technological solutions and investment opportunities.

Altseason 2023-2024: key trends

In 2023-2024, altcoins are showing impressive growth, particularly due to the development of layer two blockchains and GameFi. Leaders among them include Solana, Avalanche, and Arbitrum.

Top altcoins list for 2023-2024

These projects continue to attract the attention of investors and users, fostering the development of the cryptocurrency market.

How to determine the start of altseason?

The start of altseason can be determined using several key indicators. They help to timely recognize the growth of altcoins and make the right investment decisions.

Altseason index is the primary tool. If it exceeds 75, it means that more than 75% of altcoins are showing better performance than Bitcoin. For example, in November 2024, the altseason index is 78, indicating active growth in the altcoin market.

Additionally, it’s important to monitor the following indicators:

• Increase in altcoin trading volumes. An increase in trading volumes indicates heightened investor interest. For example, the trading volumes of Solana increased by 20% in November.
• Decrease in Bitcoin dominance. When Bitcoin’s share drops below 40%, money flows into altcoins. Currently, Bitcoin’s dominance is at 43%, which is close to the critical threshold.
• Emergence of new trends. The growth of areas such as DeFi, GameFi, or NFTs stimulates the rise of new projects. In 2024, platforms related to layer two blockchains and metaverses, such as Immutable X or The Sandbox, are actively growing.

These indicators will help to promptly recognize the beginning of altseason and effectively capitalize on the opportunities for profit.

Reasons for the onset of altseason

Altseason does not occur by chance — it is linked to specific market and technological factors. Each of these factors contributes to increased interest in alternative cryptocurrencies.

Key factors for altseason

Market cycles

Growing interest in risk assets arises amid the stabilization or decline in Bitcoin prices. Investors start looking for more profitable alternatives, shifting their focus to altcoins. For instance, in November 2024, the rise of Ethereum and Solana is associated with increased interest in DeFi and layer two blockchains.

Technological innovations

The release of new products and projects stimulates demand. In 2024, the launch of Layer-2 solutions and the active development of GameFi projects, such as Gala Games, have led to an influx of investors.

Regulations

Easing regulatory pressure gives investors confidence. In 2024, regulatory softening in certain countries, such as Hong Kong, stimulated interest in new projects.

These reasons work in tandem, creating conditions for the onset of a new altseason. Understanding them helps to timely notice investment opportunities.

How to profit during altseason?

How to profit during altseason?

Altseason provides excellent profit opportunities but requires a thoughtful approach. Well-structured strategies help to minimize risks and increase returns.

Profit strategies

1. Diversification. Don’t put all your eggs in one basket. Invest in different altcoins with different goals: for example, Ethereum for DeFi, Solana for GameFi, Arbitrum for Layer-2 solutions.
2. Trend analysis. Choose promising projects based on their technologies and applications. For example, altcoins related to metaverses and NFTs, such as The Sandbox or Axie Infinity, remain popular in 2024.
3. Risk management. Don’t invest more than you can afford to lose. Use tools like stop-losses to limit losses.

Examples of investment strategies

• Buying in early stages. Enter projects before they gain widespread recognition. For instance, purchasing Avalanche before its rise in 2023 would have yielded substantial profits.
• Holding assets during the season. Don’t panic when prices fluctuate. Many altcoins grow in waves, which requires patience.

Risks and mistakes of beginner investors

Altseason is not only an opportunity to earn but also a chance to lose money if the main risks are not taken into account.

Main risks and how to avoid them

Helpful tip: keep an eye on market updates and analytical reports. For example, platforms like CoinGecko and CoinMarketCap can help you analyze altcoins and identify trends.

Popular altcoins for investment

Altcoins continue to attract investors’ attention due to their unique technologies and growth potential. Let’s examine five leading altcoins that are relevant for investment in November 2024.

1. Ethereum (ETH)

Ethereum is the second largest cryptocurrency after Bitcoin. It serves as a platform for numerous decentralized applications (dApps) and smart contracts. As of November 30, 2024, Ethereum’s market capitalization is around $410 billion, and its price is $3,686.78. A growth of 15% is forecasted in the coming months.

2. Solana (SOL)

Solana is known for its high transaction speed and low fees. In 2024, it demonstrated a growth of over 2000%. As of November 30, 2024, Solana’s market capitalization is around $114 billion, and its price is $243.80. Further growth of 20% is expected.

3. Cardano (ADA)

Cardano is actively implementing smart contracts and aims to ensure high security and scalability. As of November 30, 2024, ADA’s price is $1.11. A growth of 10% is forecasted soon.

4. Polkadot (DOT)

Polkadot offers interoperability between different blockchains, making it attractive for developers. As of November 30, 2024, DOT’s price is $9.07. A growth of 12% is expected in the coming months.

5. Avalanche (AVAX)

Avalanche ensures high transaction speeds and compatibility with Ethereum. As of November 30, 2024, AVAX’s price is $45.51. A growth of 15% is forecasted soon.

These altcoins demonstrate significant investment potential in the near future. However, it is important to remember that the cryptocurrency market is volatile, and thorough analysis should be conducted before making investment decisions.

Forecasts for future altseasons

Forecasts for future altseasons

Experts agree that the next major altseason may begin as early as 2025. The focus will be on the development of sectors such as GameFi, DeFi, and metaverses. These sectors are showing stable growth, attracting the attention of both small investors and large institutional players. Let’s take a closer look at what the market holds in the coming years.

Growth of GameFi

GameFi (the gaming financial ecosystem) continues to evolve thanks to new projects and innovative solutions. Games such as Axie Infinity and Gala Games have already gained popularity, but new competitors are emerging in the market. In 2025, experts predict a 50% increase in investments in GameFi. This is due to the integration of blockchain technologies into traditional games, making them attractive to a wider audience.

For example: the Illuvium project combines AAA gaming mechanics with DeFi. It has already raised over $70 million in the presale phase.

Rise of DeFi

Decentralized finance continues to be one of the most promising areas in the crypto industry. Platforms like Uniswap and Aave are showing stable growth in users and trading volumes. In 2025, new DeFi protocols aimed at lowering fees and increasing security are expected to emerge. This will attract investors seeking alternatives to traditional financial instruments.

Forecast: the total value locked (TVL) in DeFi could exceed $300 billion, nearly double the current figures.

Metaverses and altcoins

Metaverses are becoming an important driver of altcoin growth. Projects like The Sandbox and Decentraland have already attracted millions of users and investors. In 2025, interest is expected to grow towards platforms that allow the creation and monetization of virtual content. This will make altcoins related to metaverses even more popular.

For example: the SAND token (The Sandbox) may grow by 30% due to platform updates and partnerships with major brands.

New trends

In addition to traditional areas, the market expects the emergence of new trends. For example, layer two blockchains (Layer-2) continue to gain popularity due to their speed and low fees. There is also expected growth in interest towards projects related to artificial intelligence and its integration into blockchain.

For instance: the Render (RNDR) token, connected to cloud computing and AI, shows a 15% growth in 2024 and could become a leader in 2025.

Risks and challenges

Despite the positive forecasts, the altcoin market remains volatile. Major risks include increased regulatory scrutiny and declining liquidity. It is essential for investors to conduct thorough analyses of projects and diversify their assets.

Summary

The next altseason promises to be dynamic due to the development of GameFi, DeFi, metaverses, and layer two blockchains. Investors who pay timely attention to new trends will be able to significantly increase their assets. However, it is important to remember the risks and to invest only after thorough analysis.