Analysts say Altcoins may spin this cycle only once, but only those with real utilities and powerful network activity will get a price increase.
“I think there’s another broad thrust from Altcoins. The problem is, what you can see for six to 12 months is a sustained gathering,” Jamie Coutts, analyst at Real Vision Chief Crypto, told Real Vision co-founder Raoul Pal on LiveStream on April 3rd.
Network activity becomes “North Star” of how to trade crypto
“At this stage, I’m not that sure, but I believe in high quality altcoins where the activity will return and the activity will drive prices. It will definitely recover with some of these higher quality names.”
In January, Cointelegraph reported that there were over 36 million altcoins. However, according to Coingecko data, Ethereum still holds a majority share of the total locked amount (TVL) at 55.56% at 55.56%, followed by Solana (6.89%), Bitcoin (5.77%), BNB Smart Chain (5.68%) and Tron (5.54%).
Coutts said traders should monitor where network activity is “attracted” and use it as a “northstar” for the way they trade on Crypto, adding that they are seeing the rise in the Altcoin market within the next two months.
“We expect to see Altcoins start picking up again by June, based on the fact that Bitcoin has returned to history by that point.”
On March 28, Coutts told the Cointelegraph that Bitcoin could reach an all-time high before the end of the second quarter, whether it makes US President Donald Trump’s tariffs and potential recession concerns more clear.
Crypto’s total market capitalization has declined by approximately 8% over the past 30 days. Source: CoinMarketCap
Overall blockchain network activity has recently experienced a sharp decline amid the decline in the crypto market. On February 21, Cointelegraph reported that the number of active addresses on the Solana (SOL) network fell to an average weekly 9.5 million in February, down nearly 40% from the 15.6 million active addresses in November 2024.
The Altcoin indicator is flashing red
Meanwhile, some key indicators used by the crypto industry are used to determine the altcoin season that comes in.
Capriole Investments’ Altcoin speculation index fell to 12%, down 53% from December 25th, according to data from CoinMarketCap.
Related: When will Altseason arrive? Experts reveal what’s keeping Altcoins down
Coinmarketcap’s Altcoin Season Index, which measures the top 100 cryptocurrencies against Bitcoin performance over the past 90 days, reads scores of 14 out of 100, leaning towards a Bitcoin dominant market called the “Bitcoin Season.”
Altcoin Season Index Chart sits at 14 at the time of publication. Source: CoinMarketCap
However, while the level of monitoring retracements signaling the Bitcoin Domination – altcoin season is 62.84%, some analysts have argued that it is no longer as relevant as the Altcoin season signal.
Cryptoquant CEO Ki Young Yu recently said that Bitcoin’s domination “no longer defines Altseason – so does trading volume.”
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This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
