Altcoin Season Isn’t Dead But It Won’t Look Like 2021 Again

Altcoins Crypto traders waiting for a repeat of the legendary 2021 altcoin boom might be waiting for something that no longer exists at least not in the same form. Market analyst Joao Wedson believes the industry has changed so much over the last three years that the definition of “altcoin season” itself needs to be rewritten. Capital Drives Altcoin Seasons And Capital Has Moved Elsewhere Wedson argues that the heartbeat of every altcoin supercycle has always been the same: huge inflows of fresh money. During 2020-2022, crypto and Web3 startups absorbed billions in funding, and that deep liquidity spilled into the broader market. Without that level of investment, he says, a synchronized altcoin surge is mathematically much harder. Today, major funding isn’t going into Layer-1 chains or DeFi projects it’s flowing into artificial intelligence. The shift isn’t ideological; it’s financial. Investors are chasing the sector with the highest expected return, and right now that isn’t crypto. Why the Index Alone Doesn’t Tell the Full Story Even though the Altcoin Season Index has fallen back into “Bitcoin season” territory, Wedson cautions against treating the chart like an on/off switch. He notes that several top-20 coins actually dropped less than Bitcoin during the sell-off something that typically precedes a rise in altcoin strength rather than weakness. From his perspective, Bitcoin pulling the market down isn’t surprising. What really matters is which assets recover faster not which assets fall. Forget the 2017 and 2021 Playbook The explosive altcoin waves of the past were driven by liquidity tidal waves and without comparable inflows, the next cycle will look fundamentally different. Wedson expects sector-focused breakouts, not a scenario where “everything pumps at once.” He points to recent years as proof: meme tokens had their moment, AI crypto took off next, then RWA tokens, gaming, and other niche rotations. Those weren’t accidents they were previews of how altcoin cycles behave when money is selective instead of overflowing. The Next Altcoin Season Will Be Narrow, Not Universal Wedson isn’t calling for the end of altcoin investing only the end of unrealistic expectations. Without major institutions returning to crypto in force, traders should expect isolated narrative-driven surges, not a market-wide explosion like 2021. For investors waiting for “the” altcoin season, the real question may not be when it happens but whether they’re prepared for the kind of altcoin season the market now produces instead of the kind they remember. The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo. com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions. Author Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team. Related stories.
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