Altcoin trading volume on Binance has increased significantly, reaching 78% in January 2025, up 11% from the previous months. This surge in altcoin volume is seen as a sign of growing retail interest, which could set the stage for an altcoin bull market in 2025. According to CryptoQuant contributor Burakkesmeci, this growth indicates a rising confidence in the altcoin market's potential, suggesting that altcoins could experience stronger momentum in the coming months. The dominance of altcoin pairs on Binance has steadily increased since May 2024 when it stood at just over 50%.
However, despite the growing dominance of altcoin trading on Binance, CoinMarketCap’s Altcoin Season Index is at 44, still signaling Bitcoin season, although it is nearing the 50-point threshold. If the index crosses above 50, it would mark the beginning of altcoin season. The index is updated daily based on the latest price performances of the top cryptocurrencies. As of writing Bitcoin's dominance stands at 57.74%, up by 2.41% in the last month, reinforcing the notion that altcoin season has not fully arrived.
Traders usually look for a decline in Bitcoin’s dominance as a sign that altcoin season is beginning. While Bitcoin remains dominant, the steady rise in altcoin volume on Binance, coupled with analysts’ optimism, suggests that altcoins could soon see stronger growth. Burakkesmeci highlighted that this increase in trading volume on Binance over the past several months reinforces confidence in altcoins and indicates growing interest.
Meanwhile, some traders are keeping a close watch on Ether (ETH), which has seen significant attention due to predictions of price increases. Crypto trader Mister Crypto speculated that Ether’s price could jump from $4,000 to $8,000 in the coming weeks, which could trigger broader growth for altcoins. Ether’s current price is $3,279, though it has fallen by about 15.77% in the past month. A price increase for Ether could act as a catalyst for other altcoins to follow suit.
Despite the optimism around altcoins, CryptoQuant’s CEO, Ki Young Ju, warned that the current market cycle might differ from previous ones. He pointed out that Bitcoin’s market cap has increased significantly since 2021, and only a few altcoin projects with strong use cases will survive. This shift in the market suggests that altcoin season might not follow the traditional pattern of capital flowing from Bitcoin to altcoins.
While Binance’s altcoin dominance and increasing trading volumes suggest that altcoins are gaining traction, the Altcoin Season Index and Bitcoin’s continued dominance show that it may not be time for altcoin season just yet. The situation remains dynamic, and analysts will continue to monitor these trends for signs of an altcoin breakout.