Altseason News: All Stars Aligned for Thrilling Phase of 2025 Bull Rally but There’s a Catch

The crypto market was primed for a major altcoin breakout in 2025, but liquidity concerns and declining on-chain activity are putting a damper on the excitement. With Bitcoin struggling to maintain key levels, fears of a weak or even absent altseason are creeping in.

Liquidity Crisis Slows the Altcoin Surge

Altcoins thrive when liquidity flows freely. But with thousands of new tokens flooding the market, capital is getting spread thin. Instead of a select few leading the charge, the altcoin sector is fragmented, leaving even strong projects fighting for attention.

The overall cryptocurrency market cap has slipped from nearly $4 trillion to around $3.3 trillion in just weeks. Bitcoin, which topped out above $105,000, has formed a concerning double-top pattern. Historically, such a setup has marked the end of a cycle rather than the beginning of an altcoin boom.

A drop in liquidity means fewer explosive gains for altcoins. Investors who once rotated profits from Bitcoin into alts are now hesitant, keeping more capital in stablecoins or moving it off exchanges entirely.

On-Chain Data Signals Weak Momentum

Beyond price action, blockchain activity paints a bleak picture for altseason hopefuls. On-chain and trading volumes are down significantly, signaling that market participants are stepping away rather than gearing up for risk-taking.

Take Base, the Ethereum layer-two solution backed by Coinbase. Data from IntoTheBlock shows an alarming 78% drop in trading volume for a basket of eight Base-based assets since early December 2024.

One reason? Whale capitulation. Large holders appear to be selling into strength rather than accumulating for another leg up. This dampens enthusiasm across the board, as retail investors typically follow big money movements.

Meme Coins No Longer Driving Demand

Meme coins have long been a bellwether for retail enthusiasm in crypto. When money pours into joke tokens like Dogecoin and Shiba Inu, it’s usually a sign that speculative fever is in full swing.

Lately, though, the opposite has happened.

• Dogecoin (DOGE) has dropped to $0.26, struggling to find fresh buyers.
• Shiba Inu (SHIB) and other meme coins have seen dwindling trading volumes, reflecting a broader lack of interest.
• Even newer meme projects, which typically pop up in speculative cycles, have failed to gain traction.

Without meme coin mania fueling broader altcoin demand, the sector lacks a key catalyst for rapid growth.

Bitcoin’s Struggle Sets the Tone

Altseasons typically kick off after Bitcoin stabilizes at high levels. But BTC’s recent struggles suggest it’s still the dominant focus for traders.

The leading cryptocurrency has failed to hold above $100,000, slipping toward $97,756 at last check. More concerning is the double-top pattern forming on the charts. If history repeats, this could mark a local top rather than a consolidation before the next leg up.

Bitcoin’s dominance in the market remains a crucial factor. If it stays high, altcoins will struggle to gain momentum. If it drops too fast, it could signal a flight to safety, leaving alts in an even worse position.

What Needs to Change for Altseason to Ignite?

A few things could shift the tide in favor of altcoins:

• Bitcoin Stability – If BTC holds above key support levels and investors feel confident rotating profits, altcoins could see renewed interest.
• Increased Liquidity – A slowdown in new coin launches would help consolidate liquidity into existing assets.
• Meme Coin Resurgence – If retail investors flood back into speculative assets, it could be a sign that risk appetite is returning.
• Institutional Interest – More big players entering the space could provide the capital injection needed to sustain an altseason.

For now, though, the signs point to a market still searching for direction. Altseason isn’t off the table, but it’s far from guaranteed.