CoinMarketCap Altcoin Season Index Hits All-Time Low – Warning to Investors
CoinMarketCap’s (CMC) Altcoin Season Index has dropped to its lowest level since its launch, showing a sharp decline in altcoin performance relative to Bitcoin. The number of altcoins outperforming Bitcoin has plummeted, causing concern for investors in the crypto market.
The altcoin market cap has fallen 38% from its all-time high, with $600 billion leaving the market. Despite this, many experts remain bullish on the future of altcoins.
Only 17 Altcoins Outperformed BTC Over the Past 90 Days
CMC’s Altcoin Season Index is a real-time information tool that helps investors assess whether the market is entering an Altcoin Season. The index is based on the performance of the top 100 altcoins against Bitcoin over the past 90 days.
Currently, the index is at 17, meaning that only 17 altcoins have outperformed Bitcoin over the past three months.
CZ, the former CEO of Binance, once commented that an index of 50 or higher is a positive sign for Altcoin Season. However, the current level of 17 is the lowest since the index was introduced, marking a difficult period for altcoin investors.
Blockchain Center's Altcoin Season Index also shows a decline, currently at 29. By the definition of the index, if 75% of the top 50 altcoins outperform Bitcoin over the past 90 days, it is considered an Altcoin Season. However, in early March, the index hit 10 – its lowest level since October 2024
Altcoin Market Value Plunges
As the Altcoin Season Index plunges, the altcoin market cap has also plummeted. The total altcoin market cap has fallen from an all-time high of $1.64 trillion to around $1 trillion – a 38% drop.
The decline is a testament to the volatility of the cryptocurrency market in recent times. However, experts remain optimistic, suggesting that this downturn may just be part of a long-term growth cycle.
Optimistic Forecasts from Analysts
Although the Altcoin Season Index has dropped to its lowest level, some market analysts see it as a sign of a major recovery opportunity. The Master of Crypto analyst, who has been active since 2016, believes that the current downturn could lead to a strong recovery for altcoins, just like what happened during the previous dip in October 2024.
According to him, although each dip creates concerns for new investors, long-term holders often receive significant profits after these dips.
This view is shared by Coinvo investor, who has been in the market since 2017. He believes that the current volatility is not a surprise but a repeat of previous cycles. According to Coinvo's prediction, the altcoin market capitalization could reach $5 trillion by 2025, tripling the current level.
In addition, CryptoQuant CEO Ki Young Ju has offered a new perspective on Altcoin Season. He believes that the old theory of Altcoin Season is no longer correct. Instead, he predicts that the money in the new Altcoin Season will mainly flow into stablecoins and altcoins with widespread adoption, instead of small and speculative tokens like before.
Conclusion
CoinMarketCap's Altcoin Season Index hit a record low, causing concern for altcoin investors. However, with optimistic comments from experts and analysts, the cryptocurrency market still has the potential to recover strongly in the future. Those who stick to the long-term strategy can continue to believe in the potential growth of altcoins in the coming years.