News Department Crypto 6 January 2025, 13:57

Bitget COO Vugar Usi Zade: “The next altcoin season is in 2025!” What you need to know about it. Here’s a detailed analysis

Analysts predict significant growth in altcoins in 2025, driven by market dynamics, technological progress, and increased investor interest.

With Bitcoin recently crossing the $100,000 mark, the cryptocurrency market is abuzz with excitement. However, attention is gradually shifting towards altcoins, signaling the upcoming start of the season.

Together with crypto exchange Bitget, we analyzed the reasons why investors will invest in alternative coins next year.

Previous altcoin seasons

Altcoin season is not just about prices. Each altcoin season has reflected unique technological and market changes.

The first altcoin season of 2017 was defined by the ICO (Initial Coin Offering) boom, which was seen as a powerful crypto analogue of the traditional IPO of companies, and the emergence of NFTs (remember CryptoKitties ?).

The second altcoin season of 2021 combined the rise of DeFi financial startups with a full-scale NFT and gaming craze.

Looking ahead, we can say that the third altcoin season of 2025 promises new narratives and technologies, some of which are already in development and others are yet to come.

New technological trends

Technological progress plays a crucial role in the development of the altcoin market. Several new technologies and trends emerged in 2024, laying the foundation for further growth in 2025. For example, BRC-20 tokens have gained significant popularity, with their growth since the beginning of the year exceeding 1000%.

BRC-20 is a token standard designed for the Bitcoin network. It allows tokens to be created and transferred on the Bitcoin blockchain using an order mechanism instead of traditional smart contracts as in networks such as Ethereum.

Other notable trends include the rise of RWAs . These are so-called Real World Assets, real-world assets that can be digitized and used in blockchain and cryptocurrency-based ecosystems. These can be either physical assets or financial instruments such as real estate, gold, stocks, bonds, or other assets that have real economic value and can be tokenized.

Another new altcoin trend is the rise of coins related to artificial intelligence . These can be tokens tied to AI projects. For example, FET (Fetch.AI).

Fetch.ai is a decentralized network for autonomous agents that use artificial intelligence to automate tasks such as forecasting, optimization, and decision-making. Agents can be devices, applications, or other systems that perform operations without human intervention.

Tokens related to DePIN networks are also becoming fashionable. Decentralized Physical Infrastructure Networks is a concept that combines decentralized networks and physical infrastructure to create new interaction and business models. For example, these can be networks of telecommunication devices, IoT (Internet of Things) sensors, energy installations, physical servers.

The evolution of cryptocurrency exchanges , the development of their functionality, technological capabilities, and regional reach, also leads to the growth of tokens associated with them.

For example, the Bitget exchange token, Bitget Token (BGB) , has recently attracted attention , reaching new all-time highs. On December 19, 2024, the BGB rate reached $4.88.

A distinctive feature of BGB is its role in the Bitget ecosystem. This allows users to receive additional benefits.

1. Lower trading fees : saving money while encouraging token holding.

2. Exclusive access : BGB holders receive early access to promising projects, participate in Bitget Launchpad , Bitget LaunchX , Bitget CandyBomb .

3. Lock for rewards : the opportunity to receive passive income in Bitget Launchpool , Bitget PoolX , Bitget Savings , Bitget Smart Trend attracts investors.

Institutional interests and regulatory environment

Institutional interest in altcoins is also growing, with venture capital firms and institutional investors increasingly exploring opportunities in the altcoin market.

Big money is always looking for the next Solana or Ethereum — cryptocurrencies with huge growth potential. Venture capitalists (VCs) invest millions in altcoins that they believe can yield huge returns. But they often prefer to keep these investments secret until they see the fruits of their labor.

Some of the largest cryptocurrency-focused venture capital firms include a16z, Coinbase Ventures, and Pantera Capital. These firms have poured tens of millions of dollars into new crypto projects, looking to cash in on the next big blockchain or dApp platform.

In 2025, new narratives are likely to emerge and venture capital activity could pick up. According to Pitchbook , crypto venture capital was fairly modest in 2023 ($10 billion) and 2024 ($7.1 billion in Q3). Next year, its activity could recover to at least the levels of 2021 and 2022, which totaled $25.3 billion and $29.4 billion, respectively. This increase will be focused on specific projects and niches that could define the next wave of growth.

The recent US elections have also created a more favorable regulatory environment, boosting investor confidence. Analysts predict that the influx of institutional capital will further fuel the growth of altcoins, making 2025 a pivotal year for the crypto market.

Altcoin season indicators

There were several indicators in December that signaled the start of altcoin season. Bitcoin dominance is declining, altcoins are outperforming, and their market cap is reaching new highs. However, popular indices suggest that the best is yet to come for altcoins.

In absolute terms, the altcoin market cap, calculated by subtracting Bitcoin’s market cap from the total cryptocurrency market cap, has reached an all-time high. According to Coindesk, it now stands at $1.61 trillion. In relative terms, Bitcoin’s dominance has approached 55%. For comparison, at the end of 2016, Bitcoin’s share of the total crypto market cap was 85%, and at the end of 2020, it was 64%.

However, both metrics include stablecoins as well as coins pegged to other assets such as gold, stocks, real estate. While they are important for market liquidity, they do not necessarily reflect the true development of the altcoin market.

Therefore, for a more accurate measurement, Blockchain Center’s Altcoin Season Index excludes stablecoins and other dependent coins. It defines altcoin season as when more than 75% of the top 50 coins outperform Bitcoin over the past 90 days.

Most recently, this index crossed the 75% mark on December 2 and held for a week. The previous altcoin season kept this index above the threshold for almost three months. This supports the idea that the real peak may not come until 2025. And December was only the first swallow.

We are waiting for the next ones.

Where to find and buy altcoins

One of the special features of Bitget is the support of a large number of altcoins , even rare ones. If you want to find a coin that is difficult to buy on other exchanges, on Bitget you will most likely be able to do it. For example, Bitget has twice as many coins as the same Binance. It turns out that the choice is twice as large.

You can buy cryptocurrency directly on Bitget using a credit or debit card. The exchange also offers P2P trading. As stated on the website, only with verified merchants.

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