CoinMarketCap's Altcoin Season Index Dips to New Low - Insights for Investors

The Altcoin Season Index from CoinMarketCap (CMC) has recorded its lowest level since its inception, indicating a sharp decline in the performance of altcoins compared to Bitcoin.

Recent data shows that the market capitalization of altcoins, known as TOTAL2, has decreased by 38% from its all-time high, with approximately $600 billion exiting the cryptocurrency market. Despite this downturn, many market experts are expressing cautious optimism about future prospects.

17 Altcoins Have Outperformed Bitcoin in the Last 90 Days

The CMC Altcoin Season Index tracks the performance of the top 100 altcoins relative to Bitcoin over the previous 90 days. Currently, the index sits at 17, indicating that only 17 altcoins have managed to outperform Bitcoin during this timeframe.

The former CEO of Binance, CZ, has indicated that an index score above 50 is seen as a positive signal. He noted,

“I think this is a tough ranking system. 50 is probably a really good score.”

A score of 17 is indeed concerning, marking the lowest point since the index was launched.

In contrast, a separate Altcoin Season Index maintained by Blockchain Center is currently at 29. This alternative index defines an Altcoin Season as occurring when 75% of the top 50 cryptocurrencies outperform Bitcoin over the same 90-day period, with the index plummeting to 10 on March 7 — its lowest since October 2024.

The decline in these indices reflects a substantial drop in the total altcoin market capitalization, which fell from its peak of $1.64 trillion to around $1 trillion.

Optimism Persists Amidst Market Challenges

Market analyst Master of Crypto, who has been monitoring trends since 2016, views the present decline as a potential precursor to an eventual recovery. He observes,

“While each dip may worry new investors, those who hold on usually see significant returns.”

Bitcoin investor Coinvo has been active since 2017 and believes that the market's volatility resembles patterns from previous cycles. He suggests that the expansions seen in altcoin market capitalizations during 2017 and 2021 may repeat in 2025, predicting a potential rise to $5 trillion in altcoin market cap—more than triple the current level.

Additionally, Ki Young Ju, CEO of CryptoQuant, offers a fresh perspective on Altcoin Season. He asserts that the traditional understanding of Altcoin Season is evolving, favoring capital flows into stablecoins and well-established altcoins rather than smaller, speculative tokens.