According to cryptocurrency traders and investors, altcoin season, a period when alternative cryptocurrencies outperform the leading asset Bitcoin, is expected to kick off anytime soon. As if to validate their sentiments, new market data hints at an Ethereum bottoming, with several major altcoins showing similar promising signals.

According to data from the on-chain analytical platform Cryptoquant, the relative price of the second-largest cryptocurrency by market cap, compared to Bitcoin, might have seen its bottom. This development is considered bullish for the altcoin market, as it could “signal the beginning of an Alt season,” CryptoQuant wrote.

Key Altcoins Showing Recovery Signs

The ETH/BTC price ratio has skyrocketed by 38% over the last week. This upward movement comes after the ratio hit the lowest level recorded since January 2020. As displayed historically, the ratio level has indicated a relative bottom for ETH and exceeded the larger altcoin outperformance.

Similar patterns are emerging across other major altcoins. XRP, which has been consolidating near multi-year lows against Bitcoin, is showing signs of accumulation as institutional interest in Ripple’s payment solutions continues to grow. The recent regulatory clarity around XRP has positioned it as a potential breakout candidate during this emerging altcoin cycle.

Solana has demonstrated remarkable resilience, with its ecosystem activity remaining robust despite broader market pressures. The blockchain’s high-performance capabilities and growing DeFi ecosystem have attracted significant developer activity, creating a foundation for potential outperformance as altcoin season gains momentum.

Meanwhile, Cardano has been quietly building momentum through its steady development progress and upcoming network upgrades. The smart contract platform’s methodical approach to development has created a loyal community base, and technical indicators suggest ADA may be primed for a significant move alongside Ethereum’s recovery.

Even meme coins are participating in the early signs of altcoin season revival. Despite its speculative nature, Shiba Inu has maintained strong community engagement and has been developing utility through its ecosystem expansion, including the ShibaSwap DEX and upcoming layer-2 solution.

Technical Analysis Confirms Bottom Formation

Putting the current market trend into perspective, excerpts of CryptoQuant’s analysis reads:

“ETH recently entered an extreme undervaluation zone relative to Bitcoin, based on the ETH/BTC MVRV metric, for the first time since 2019. Historically, similar conditions in 2017, 2018, and 2019 were followed by periods where ETH outperformed Bitcoin significantly, signaling strong mean-reversion potential.”

This pattern extends beyond Ethereum. XRP’s technical indicators show oversold conditions similar to those seen before its previous major rallies, while Solana’s on-chain metrics demonstrate continued network growth despite price suppression. Cardano’s development activity remains high, suggesting fundamental strength that could translate to price appreciation once market sentiment shifts.

Remarkably, the increase in demand for ETH relative to Bitcoin as well as the decline in selling pressure, is another market trend affirming ETH’s recent underperformance and possible bottom against Bitcoin. Similar accumulation patterns are visible across the altcoin spectrum, with smart money quietly positioning for the expected altcoin resurgence.

Volume Surge Indicates Renewed Interest

Another key event validating the presence of altcoin season is the price in the relative ratio of ETH’s spot trading volume, which hit 0.89, a level last seen in August 2024. As the analysis highlighted, this development points to an increase in traders, holders, and investors’ exposure to ETH in comparison to Bitcoin.

The volume surge isn’t limited to Ethereum. XRP has seen increased whale activity, with large transactions suggesting institutional accumulation. Solana’s trading volume has maintained healthy levels despite market volatility, while Cardano has experienced renewed retail interest following recent development milestones. Even Shiba Inu has maintained surprisingly consistent trading volume, indicating sustained community engagement.

It bears mentioning that this pattern was experienced from 2019 to 2021, a time when ETH outpaced Bitcoin by increasing its value by four times its price. During that same period, other major altcoins experienced even more dramatic gains, with some assets delivering 10x to 100x returns as the altcoin season peaked.

Market Outlook

At press time, the second-largest cryptocurrency by market cap is valued at $2,672 per coin, while XRP trades around key support levels. Solana maintains its position as a top-10 cryptocurrency, Cardano shows signs of breaking from its consolidation pattern, and Shiba Inu continues to benefit from meme coin momentum.

As these technical and fundamental indicators align, the cryptocurrency market appears to be setting the stage for what could be the next significant altcoin season, with Ethereum leading the charge and major altcoins like XRP, Solana, Cardano, and even speculative assets like Shiba Inu positioned to potentially benefit from the shifting market dynamics.

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Filed under: Bitcoin - @ May 22, 2025 10:26 am