2025 Altcoin season price prediction: ETH will soon surge to $4000, AAVE, OP, TIA, and ARB will thrive.

The year 2025 is likely to herald the altcoin season, with 49% of the top 50 altcoins outperforming Bitcoin; the dominance of altcoins is changing. Fueled by a shift in investor interest and approvals from U.S. regulators, Ethereum (ETH) soared 55% in July, outperforming Bitcoin by 70%. Aave (AAVE), Optimism (OP), Celestia (TIA), and Arbitrum (ARB) within the Ethereum ecosystem are likely to thrive during the altcoin season.

The cryptocurrency market is undergoing a transformation, with the first mature altcoin season expected to be witnessed in 2025. Currently, the supply flow from Bitcoin into Ethereum and other alts paints a bullish picture.

The problem still exists: when should the market welcome altcoin season? Which tokens should investors pay attention to?

A new round of altcoin season is about to arrive

The cryptocurrency market is currently in a transitional phase, just one step away from the arrival of "alts season." When over 75% of the top 50 cryptocurrencies outperform Bitcoin, it officially enters "alts season."

Currently, this figure is 49%, indicating that the market is moving towards altcoin dominance, but has not yet fully transitioned. As more and more altcoins enhance their appeal compared to Bitcoin, investor sentiment is beginning to shift, which could bring a peak season for altcoins in the near future.

(Source: BlockchainCenter)

This midway sign indicates that the altcoin market is still in the consolidation phase, with some tokens beginning to outperform Bitcoin; however, it is still possible for it to arrive before the end of Q2 2025.

Analyst Michaël van de Poppe stated that macroeconomic factors are crucial for determining the trends of crypto assets.

Michaël stated: "The macroeconomy is crucial for investors shifting from hedging to risk-taking. This is why there is a strong negative correlation between gold and Ethereum. When gold prices consolidate, riskier assets like Ethereum start to outperform the market. Conversely, if gold prices rise sharply, it is usually a time when alts perform poorly. Moreover, due to recent merger and acquisition legislation and IPOs, along with the passage of U.S. currency, it is a period when crypto alts are underperforming."

After a 6.1% drop earlier this month, Bitcoin's dominance has started to recover recently. The decline in Bitcoin's dominance was initially seen as a signal that the altcoin season was approaching.

Historically, the decline of Bitcoin's dominance indicates that alts have outperformed the king of cryptocurrencies, thereby driving broader market growth. However, if Bitcoin's dominance rises again, the market may revert to Bitcoin's dominance. This would delay the arrival of altcoin season. Michaël believes that this could be caused by macroeconomic factors.

"If the altcoin market cannot sustain its upward momentum, the main reason lies outside the cryptocurrency market, just like in the past six months where all assets in the cryptocurrency market showed negative returns due to a complete shift in the macroeconomic landscape. If risk-averse sentiment returns to the market, it could be due to trade wars, actual wars, or potential economic recessions; we might see the altcoin market return to the market. However, conversely, we could see a strong economic downturn," Michaël stated.

(Source: Trading View)

Ethereum rises to dominate

The price of Ethereum has surged 55% since the beginning of this month, approaching the $4,000 mark. This growth is mainly due to capital shifting from Bitcoin to Ethereum, attracting investors seeking higher returns.

Michaël pointed out: "Ethereum's performance has surpassed Bitcoin by more than 70%, indicating that we are now entering the Ethereum market. The reason behind this sudden shift is the change in U.S. regulations. The approval of the GENIUS Act and the acceptance of the CLARITY Act have opened the door for institutional liquidity to flow into Ethereum, as the inflow of Ethereum ETFs has exceeded that of Bitcoin ETFs in the past few weeks."

The recent rise of Ethereum is likely to benefit altcoins based on its second-generation blockchain. These coins are expected to become the standout investments for investors to watch during the altcoin season.

Michaël said: "Tokens that provide practical functions in the Ethereum ecosystem (Aave, Optimism, Celestia, Arbitrum) are likely to thrive when Ethereum performs well. Additionally, any tokens related to the United States may outperform other tokens as they will be in high demand."

The positive momentum of Ethereum is expected to drive its price to break the $4,000 barrier in the coming days. With the continued inflow of funds into Bitcoin, Ethereum may reach new highs, thereby impacting the broader cryptocurrency market. With Ethereum leading the way, investors are watching for further bullish signs.

(Source: Trading View)