If you’ve been watching the crypto space closely, you’ve probably noticed a shift in momentum recently. Bitcoin dominance continues to fall while the overall crypto market cap is on the rise. Is this the start of the much-anticipated altcoin season? Let’s dive into what’s happening this week, the driving factors behind the surge in altcoins, and which niches and projects are heating up right now.
This analysis is brought to you by CryptosRUs, who breaks down the latest market dynamics and offers insights on what to expect moving forward.
What’s on the Horizon This Week?
For the first time in months, this week looks like it might be relatively calm in the crypto and broader financial markets—at least in the U.S. There’s no major Fed meeting, no Federal Open Market Committee (FOMC) minutes expected, and only a few economic data points to watch, such as the PCE inflation reading on Friday. The absence of big market-moving events could be a good thing, offering stability amid the usual noise.
Meanwhile, Europe might see some action with the European Central Bank (ECB) decision on interest rates and inflation data from the UK. If the ECB decides to cut rates further, it could put additional pressure on the U.S. Federal Reserve to follow suit. Almost everyone, both inside and outside the U.S., seems to be hoping for rate cuts to stimulate growth. This global environment of easing monetary policy could further fuel crypto market gains.
Market Overview: Mixed but Positive Momentum
Last week’s market was a bit mixed. The S&P 500 and NASDAQ hit new all-time highs recently but experienced a couple of down days. However, crypto-related stocks and Bitcoin continued their slow, steady ascent. Altcoins, in particular, have come back to life with significant upward moves. Projects like XRP, Ethereum, various DeFi tokens, memes, and multiple Layer 1 blockchains have all shown strong momentum.
Is Altcoin Season Truly Here?
This has been the big question on everyone’s mind. Traditionally, altcoin season begins after Bitcoin reaches its peak, as investors rotate profits into altcoins. But this cycle might be different.
Earlier this year, the theory was that Bitcoin would lead the charge upward, and retail investors would drive altcoin season by speculating heavily on meme coins. The idea was that memes would ignite first, then the chains they reside on would heat up, followed by other altcoins.
However, a new catalyst is emerging—institutions. For the past year, institutions have been accumulating Bitcoin aggressively and now appear to be shifting attention to Ethereum. Ethereum ETF inflows exploded last week, jumping from around $100 million per week to billions. This influx of institutional money has propelled Ethereum’s price higher.
As Ethereum pumps, so do related projects: decentralized applications like Uniswap and Lido, synthetic stablecoins like Ethneia, and meme coins on Ethereum such as Faky, Pepe, and Sheeb have all seen gains. This institutional-led momentum could redefine how altcoin season plays out.
Layer 1 Blockchains and ETF Approvals
Many Layer 1 blockchains have pending ETFs that the SEC might approve in October. XRP, Solana, Avalanche, Cardano, and others are in line for potential ETF launches. If institutions start buying billions of dollars in these altcoins like they are with Ethereum, the altcoin market could experience a massive surge.
We might also see bundled ETFs that include Bitcoin, Ethereum, and other altcoins, as well as staking-focused ETFs. The combination of these financial products could unleash a wave of institutional buying that pushes prices dramatically higher.
Looking at historical patterns, Bitcoin has tended to make big moves upward starting in October for the last two years. Could 2025 follow suit? The timing looks promising.
Bitcoin’s Next Move and Declaring Altcoin Season
Currently, Bitcoin is hovering under $122,000, with resistance around $120,000. There seems to be one more push left to break out to $130,000 or $140,000 before possibly consolidating. Meanwhile, altcoins have been gaining strength steadily, with Bitcoin dominance dropping sharply as Ethereum dominance rises.
Altcoin season could be officially declared if we see key altcoins hit previous highs—Ethereum above $4,000, Solana above $200, and XRP above $4. These levels were seen earlier this year in January and February. If these benchmarks are met or exceeded this week, it would be a strong confirmation that altcoin season is underway.
Where to Focus: Niches and Projects to Watch
Concentrate your efforts on Layer 1 blockchains with pending ETF approvals. These are the “big cats” that are attracting institutional interest and will likely see momentum before and after ETF approvals.
On top of these chains, focus on major DeFi projects such as decentralized exchanges (DEXs), lending platforms, and liquidity pools. These projects tend to perform well within their ecosystems, much like what’s happening on Ethereum right now with Uniswap, Lido, and Ethneia.
Outside of DeFi, keep an eye on AI, decentralized identity (Dpin), and meme coins. While gaming projects remain weak at the moment, memes and AI-related projects are gaining traction. The AI narrative is strong and here to stay, with platforms like ChatGPT and Grock continuously improving.
Many DeFi projects are blending AI and decentralized identity, creating innovative hybrids that could perform well in the coming months. However, patience is key as DeFi leads the way first.
A Personal Note: Beware of Scams in Crypto-Related Purchases
On a personal note, I want to share a cautionary tale related to crypto and online purchases. I recently ordered an electric dirt bike from a company called Taria USA, which seemed legitimate with a decent discount and even an additional crypto discount.
However, after making payment and receiving a tracking number, the shipping company suddenly demanded an additional $1,000 insurance fee with questionable reasoning. The company has no verifiable physical address or working phone number, and investigations online suggest it’s a scam targeting crypto payments.
Despite attempts to contact the shipping company and its CEO, there’s been no response. I’m considering hiring a private investigator or lawyer in California to pursue this further—not just for my own sake but to prevent others from falling victim.
If you have recommendations for investigators or lawyers in the California area, or want to assist with this, please reach out. I’ll share more details and updates via my social channels and in the description below.
Conclusion
Altcoin season might finally be here, driven by a new wave of institutional interest and ETF approvals on the horizon. Bitcoin continues to hold strong, but the spotlight is shifting towards Ethereum and other altcoins. If key altcoins break past their recent highs this week, it could be time to confidently declare the start of altcoin season.
Focus on Layer 1 blockchains with pending ETFs and the biggest DeFi projects within those ecosystems. Keep an eye on emerging niches like AI and meme coins, but be cautious and patient as these sectors develop.
Stay vigilant in your crypto dealings and always research thoroughly before making purchases or investments.
Here’s to a promising week ahead in the crypto space!
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