The next altcoin season in 2025 may not bring massive gains for most cryptocurrencies, according to Ki Young Ju, the CEO of CryptoQuant. Instead, only projects with strong fundamentals, potential ETF approvals, and revenue-generating models may perform well.
Not All Altcoins Will Survive
Ju stated that “most altcoins won’t make it” during the 2025 market cycle. In previous bull runs, many cryptocurrencies saw sharp price increases. However, Ju believes that trend is over. This time, only a few will benefit, particularly those attracting institutional investors and regulatory approvals.
Some analysts believe that the recent decline is a sign of market capitulation. In financial markets, capitulation happens when investors panic-sell their holdings, leading to a sharp drop in prices. This often marks the final stage of a downtrend before the market starts to recover. If this is the case, altcoins may be near their bottom, and a turnaround could be coming soon.
The Altcoin Market Is Testing a Key Resistance Level
While some experts believe only a few strong altcoins will perform well, others suggest that the market is on the verge of a major breakout. A long-term analysis of the altcoin market shows that prices have followed a rising trendline for the past seven years.
This means that, despite short-term fluctuations, the overall market has been moving upward. However, a four-year resistance level is now being tested. Resistance levels are points where prices have struggled to move higher in the past. If the market can break through this level, it could signal the beginning of a strong rally for altcoins. On the other hand, if the market fails to push past this level, prices could face another rejection and stay within a sideways trend.
Despite the possibility of a breakout, recent data suggests that altcoins are struggling. The total altcoin market capitalization has dropped to $238.25 billion. This means the combined value of all altcoins has decreased, showing a lack of strong buying activity.
A downward trend has been visible throughout the year, and trading volumes remain low. This suggests that, right now, there is not enough demand to push prices higher.
ETF Approvals Could Be a Turning Point
One of the biggest factors that could influence the altcoin market in 2025 is the approval of exchange-traded funds (ETFs). ETFs allow traditional investors to buy and trade cryptocurrencies without directly owning them. This often leads to increased demand and higher prices. Several cryptocurrencies, including Solana (SOL), Cardano (ADA), and XRP ETFs, are waiting for approval from U.S. regulators. If these ETFs get the green light, they could bring more institutional money into the market, helping to push prices higher.
In addition to these major altcoins, there are also new ETF filings for lesser-known cryptocurrencies such as Official Trump (TRUMP) and Bonk (BONK). These filings show that there is keen interest in crypto ETFs, and more assets could be added to investment portfolios in the near future.
