4-4-2025 – Industry experts are pointing towards a possible altcoin resurgence, albeit with a notable caveat: only tokens demonstrating genuine utility and robust network engagement are likely to benefit from the anticipated upturn.
Jamie Coutts, Chief Crypto Analyst at Real Vision, has emerged as a leading voice in this discourse, suggesting that network activity serves as the crucial compass for cryptocurrency trading strategies. Whilst maintaining a measured outlook, Coutts anticipates a potential recovery phase beginning in June, though he emphasises this may not necessarily translate into sustained growth over the longer term.
The contemporary cryptocurrency landscape presents a rather sobering picture, with Ethereum maintaining its commanding position in total value locked (TVL) at 55.56%. Following distantly are Solana, BNB Smart Chain, and Tron, commanding 6.89%, 5.68%, and 5.54% respectively, according to recent CoinGecko data.
Market indicators paint a particularly stark picture of current conditions. Capriole Investments’ Altcoin Speculation Index has witnessed a dramatic 53% decline since late December, mirroring Ethereum’s 49% fall from its £3,490 peak. Bitcoin’s market dominance currently stands at a robust 62.84%, though experts increasingly question the reliability of this metric as an indicator of altcoin performance.
CryptoQuant’s CEO Ki Young Ju has proposed a paradigm shift in market analysis, suggesting that trading volume, rather than Bitcoin dominance, now serves as the key determinant of altcoin season dynamics. This perspective aligns with the broader industry trend towards focusing on practical utility and actual network usage rather than mere market capitalisation.
Despite the proliferation of altcoins – now numbering over 36 million – experts emphasise that future success will likely be concentrated among those demonstrating genuine utility and sustainable network activity. This selective approach marks a significant departure from previous market cycles, where speculation often drove widespread price appreciation across the altcoin spectrum.
