In the cryptocurrency world, most investors start with Bitcoin (BTC) as the primary digital asset with the world’s largest user base and market capitalization. However, as blockchain technology evolves and market demands change, alternative coins, or Altcoins, are starting to play an important role, both in terms of innovation and investment opportunities.
What is Altcoins?
Altcoin stands for Alternative Coin, which is a name given to a group of all types of digital coins or tokens other than Bitcoin. Examples include Ethereum (ETH), Solana (SOL), Litecoin (LTC), XRP (Ripple), and others. The main feature of Altcoin is that it builds on and improves on Bitcoin’s limitations or adds new features, giving investors and users a variety of options.
Bitcoin Dominance
Altcoin Season can only occur when Bitcoin Dominance decreases. That is, Bitcoin Dominance shows the percentage of Bitcoin’s market value compared to the total cryptocurrency market value. If Bitcoin Dominance decreases, it means that more funds are flowing into Altcoins than Bitcoin. Therefore, it is an important indicator that helps traders understand which assets are flowing the most money in the market and can be used as an effective signal for making investment decisions between Bitcoin and Altcoins.
Altcoin Season Index
This is another index that determines whether a market is in “Bitcoin Season” or “Altcoin Season” based on how the top altcoins perform against Bitcoin over a given period of time. The market is currently showing mixed signals, with the index at 39/100 indicating that the market is still in Bitcoin Season but showing signs of rotation towards altcoins.
The reading of the Altcoin Season Index will tell you whether the market is in an era of capital inflows into Bitcoin or Altcoins. If the index is above 75, it means “Altseason“. Many investors have started to move money from BTC to Altcoins for risk and higher returns. However, if the value is below 25, it means that the market still trusts the stability of Bitcoin.
The Altcoin Season Index (ASI) on July 25, 2025 from CoinMarketCap was at 37 out of 100, which is not considered to be fully Altcoin Season, as the index value must be higher than 75 to indicate that the market is giving returns to the Altcoin group. However, the value of 37 reflects a recovery from previous periods that were much lower, such as the previous month when the index was at 18, which was clearly the Bitcoin Season. During that time, investors focused on holding Bitcoin more than other coins because they saw it as a safe asset with high liquidity during market uncertainty.
The change in ASI over the past 90 days shows the continuous movement of sentiment in the crypto market. In early May 2015, the index began to rebound along with the total market value of Altcoins, which moved from around $1.2 trillion to almost $1.8 trillion in early July 2015. While the ASI previously reached above 50 before starting to adjust down slightly to 37 at present, although it has not officially entered the Altcoin Season, it reflects that the Altcoin group has more support from investors compared to the previous quarter. The continuous increase in ASI may indicate a gradual inflow of money into the Altcoin market, which often occurs at the beginning of the transition from Bitcoin Season to Altcoin Season. Investors who follow this index can use it as a signal for planning strategies, such as considering gradually increasing the weight of Altcoins or collecting minor coins with strong fundamentals before the market truly enters the Altseason.
Factors affecting change
- Market Psychology – FOMO (Fear of Missing Out) causes money to flow from Bitcoin to Altcoins and Risk Appetite increases = Turn to Altcoins with higher profit potential.
- Technical Factors – Bitcoin is rising in price, which means Altcoins are cheaper (relative value) and Altcoins have a smaller market cap, which means they may have higher potential returns.
- Fundamental Developments – “Fundamentals” in the crypto market refer to events or changes that affect the “value” or “long-term growth potential” of a digital asset. For example, if DeFi becomes popular, money will flow to DeFi tokens and the NFT trend, money will flow to NFT-related tokens. And the latest that traders are keeping an eye on is the “arrival of Altcoin ETFs.”
- After the Spot Bitcoin ETF and Ethereum ETF were approved in the US market, the Altcoin ETF trend has been increasingly watched. In 2025, there are many Altcoins that have been proposed for approval to enter the ETF market, such as Solana (SOL), Litecoin (LTC), XRP, Dogecoin (DOGE), Cardano (ADA), Polkadot (DOT), and there are also basket/index ETFs that focus on Altcoin coins waiting for the approval process.
Altcoin ETF Approval Status Update (July 2025)
CryptoDnes has analyzed the chances of cryptocurrency ETF approval by the US SEC in 2025, divided into 3 groups based on probability:
Altcoin group with 95% chance of approval
Solana (SOL): Applications filed by major companies such as VanEck, Fidelity, Bitwise, and 21Shares, with the SEC set to rule on October 10, 2025, and likely to be considered a commodity.
XRP: Grayscale, Bitwise, and WisdomTree Filed Requests, SEC Set to Decide on October 17, 2025, Clarifies Legal Status
Litecoin (LTC): Canary, Grayscale, and Coinshares Filed, SEC Set to Decide on October 2, 2025, Deemed Low-Risk Asset
Altcoin group with 90% chance of approval
Dogecoin (DOGE) and Cardano (ADA): Petitions filed by Grayscale, others, SEC ruling in October 2025, likely to be considered commodities
Polkadot (DOT) and Hedera (HBAR): Grayscale and 21Shares File Applications, SEC Set for November 2025, Regulated Futures Markets
Avalanche (AVAX): Grayscale and VanEck Filed Requests, SEC Set for Dec. 12, 2025
Low approval chance (60%–50%)
SUI: Application filed with unclear legal status, no regulated futures, SEC to rule on Dec. 21, 2025
TRON (TRX) and PENGU: Canary applications filed by SEC, scheduled for January and March 2026 respectively, and unclear legal status and institutional acceptance
That is, the overall atmosphere is positive, SEC is more open-minded in 2025, and it is predicted that more new capital will flow into the Altcoin market as the ETF trend becomes the main driver after the success of Bitcoin/Ethereum ETF.
The key to successful crypto trading may not only lie in the investment amount or understanding of each asset, but also in understanding and recognizing the broader patterns and trends that the index reveals. Reading index analysis, including technical and fundamental analysis, is another important thing so that traders can develop a comprehensive, effective trading strategy and manage their own risks better.
Warning: Cryptocurrencies and digital tokens are highly risky. You may lose all your investment. Please study and invest according to your acceptable risk level.
Reference: Efinance Thai
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