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2 Reasons Why the Altcoin Season Is Ready to Start

2 mins
Updated by Daria Krasnova
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In Brief

  • Narrative Shift Sparks Interest in AI Coins & Memecoins: These categories lead with 50.4% of mindshare, redirecting focus from BTC and ETH.
  • Altcoin Market Cap Hits $837 Billion: A 35% gap from its 2021 peak suggests untapped growth potential for alternative coins.
  • Investor Rotation Drives Momentum: Capital flows into new narratives, signaling a broader shift toward undervalued opportunities in the market.
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Altcoin season may be on the horizon as key narratives gain momentum in the crypto space. AI tokens and meme coins are capturing the spotlight, driving 50.4% of the narrative mindshare and signaling a shift in investor focus.

This trend is complemented by the rising market cap of altcoins, now at $837 billion, its highest level since early 2022. With altcoins still 35% below their peak, the stage is set for significant growth as capital flows away from BTC and ETH into emerging opportunities.

Memes and AI Leading the Narrative Mindshare

The emergence of strong narratives often signals the start of an altseason. When distinct themes gain traction, they drive attention and capital away from major players like BTC and ETH.

Currently, AI and meme coins are leading the way, capturing 50.4% of the narrative mindshare in the crypto space. This reflects a growing shift in focus toward these themes, setting the stage for broader altcoin season momentum.

Narratives with the biggest mindshare.
Narratives with the biggest mindshare. Source: Kaito

AI coins lead with 27.76% of the narrative share, while memes trail at 22.64%, highlighting rising user interest in specific categories. As both narratives gain traction, capital is likely to move into altcoins. This could reduce BTC and ETH dominance, benefiting the overall altcoin market.

Altseason Could Spark a 35% Growth

The current market cap of crypto, excluding BTC and ETH, has reached $837 billion. This is the highest value since early 2022, reflecting a resurgence in interest for altcoins.

Despite this growth, the figure remains significantly below its peak of $1.13 trillion in November 2021, highlighting room for further recovery.

Crypto Total Market Cap Excluding BTC and ETH.
Crypto Total Market Cap Excluding BTC and ETH. Source: TradingView

At 35% below its all-time high, the altcoin market still appears undervalued compared to the broader crypto space. This gap suggests the potential for a significant surge as investors rotate capital from BTC and ETH into alternative coins.

With rising interest in new opportunities, altcoins could see substantial growth in the coming weeks, sparking a new altseason for this cycle.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Tiago Amaral
Marketing professional turned coder, passionate about code, data, crypto, and writing. I hold a Marketing and Advertising degree and a Disruptive Strategy certification from Harvard Business School. I love querying blockchain data and discovering insights hidden in data.
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