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.

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.

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.

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.

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.

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.

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.

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

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.

Read the continuation at the link.