What are alts? The world of encryption beyond Bitcoin.

The term "Altcoin" originates from the English "alternative coin" and specifically refers to all cryptocurrencies other than Bitcoin (BTC). Although the term "山寨" (shanzhai) often carries a negative connotation in Chinese contexts, in the crypto field, it has become synonymous with technological diversity and innovation. Currently, there are over 22,000 kinds of altcoins globally, accounting for more than 40% of the total market capitalization of cryptocurrencies.

##Core Categories and Application Scenarios Altcoins are not merely imitations of Bitcoin; they are designed to meet different needs and are mainly divided into six major types:

• Stablecoin: such as USDT, USDC, value pegged to fiat currency, used to reduce trading volatility.
• Platform tokens: such as Ethereum (ETH) and Solana (SOL), support smart contract and decentralized application development.
• Governance tokens: such as UNI, AAVE, grant holders the right to participate in protocol decision-making votes.
• Privacy coins: such as Monero (XMR), ZCash (ZEC), enhance transaction anonymity.
• DeFi tokens: Driving decentralized lending, trading, and other financial protocols
• Meme Coin: Such as Dogecoin (DOGE), which relies on community culture for dissemination and is extremely volatile.

The rise of Ethereum particularly highlights the technological breakthroughs of altcoins—its smart contract functionality has spawned billion-dollar ecosystems such as DeFi and NFTs, completely expanding the application boundaries of blockchain.

##What is the Shanzhai Season? The Storm Moment of Capital Rotation

Altcoin Season refers to a periodic phenomenon where there is a collective shift of funds from Bitcoin to altcoins in the market, leading to a surge in the prices of most altcoins by 50% or even several times within a short period. This trend usually lasts for several weeks to months, accompanied by high volatility and a spike in trading volume.

Review of Historical Typical Cycles

• 2017–2018: The ICO boom drove Bitcoin's dominance from 86.3% to a crash of 38.7%, with altcoins like EOS seeing monthly increases of over 300%.
• 2020–2021: The explosion of DeFi and NFTs, meme coin DOGE surged 28,000%, and the total market cap of altcoins jumped from 30% to 62%.
• End of 2024: The Solana ecosystem and AI sector (such as RNDR) lead the way, with some small-cap tokens experiencing weekly gains exceeding 150,000%.

These cases reveal a common pattern: altcoin seasons often erupt when the Bitcoin bull market stalls. When BTC prices consolidate or pull back, investors turn to high-risk, high-potential alternative assets, creating a "capital overflow effect."

##Four Key Data Indicators: Capture the Signals of the Altcoin Season in Advance

Altcoin Season Index

This index tracks the performance of the top 100 altcoins (excluding stablecoins) against Bitcoin over a 90-day period. When the index surpasses 75 (meaning 75% of altcoins outperform BTC), it marks the official start of the altcoin season. As of June 2025, the index has risen from a low of 13.1 in March to 23, entering the "neutral transition zone," but has not yet triggered the threshold.

Bitcoin Dominance (BTC.D)

This is the ratio of Bitcoin's market capitalization to the total market capitalization of cryptocurrencies. History shows that when BTC.D falls below 55%, funds begin to rotate massively into altcoins. Currently, BTC.D is at 62% (down from 65% in May), and we need to keep observing whether it will further decline.

Ethereum and altcoin trading volume

• Ethereum Performance: ETH is often seen as a barometer for altcoins. If the ETH/BTC exchange rate continues to strengthen (for example, in May 2025, ETH rose 47%, far exceeding BTC's 9%), it indicates a shift in funds.
• Trading volume surges: The total trading volume of altcoins exceeds 80 billion USD in a single day, accounting for more than 35% of the market total, marking the formation of enthusiasm.

stablecoin liquidity reserve

The total market value of stablecoins is a "reservoir" of potential purchasing power. Currently, the market value of stablecoins has reached $255 billion (an annual increase of 104%). Once sentiment shifts, this capital can quickly flow into the altcoin market, becoming the "fuel" for price increases.

##Current Market Status: Key Data for June 2025

• Bitcoin price: After reaching a historical high of $111,970 on May 22, it has consolidated around $104,000.
• Technical Indicators: The RSI and MACD of BTC indicate a weakening of upward momentum, entering a "fatigue phase".
• Sector Movement: Layer 2 projects (such as Base chain TPS exceeding 500) and AI tokens (RNDR, AGIX) have started to outperform the market.

Conclusion: The market is in the "Altcoin Season Precursor" phase. If BTC.D falls below 60% and the Altcoin Season Index breaks above 50, it may trigger a full market rally.

##Investor Strategy: Layout Opportunities and Risk Control Key Points

key layout track

1. Layer 2 scaling solutions: Benefiting from the high Gas fee pain points of Ethereum (e.g., Polygon, Arbitrum)
2. AI + Blockchain Integration Projects: Such as the decentralized computing network Render (RNDR)
3. Compliance stablecoin associated ecosystem: such as the settlement application of USDC in the payment giant Visa.

Risk Management Principles

• Position control: The volatility of altcoins often exceeds that of BTC by 3 times, it is recommended to allocate no more than 20% of the investment portfolio.
• Project Due Diligence: The selection must meet three criteria: clear technical white paper, real-name disclosure of the development team, and on-chain active users > 100,000
• Cold storage protection: Use hardware wallets (such as Tangem) to safeguard assets and avoid hacker attacks during peak trading periods.

Crypto analyst Tracer's warning: "The end of the altcoin season often comes more suddenly than its beginning." When BTC.D rebounds by 5% in a week or meme coins drop by 40% in a day, it's time to decisively reduce positions.

##Conclusion: The Battleground of Innovation and Bubble Coexistence

Altcoins have transformed from "imitations" into the core vehicles driving smart contracts, cross-chain interoperability, and the DeFi revolution, with their technological value validated. Although altcoin season offers high return opportunities, over 70% of altcoins will go to zero during bear markets. Investors need to steer with indicators (such as the Altcoin Season Index, BTC.D) and anchor on value to capture real dividends amidst the tumultuous waves of the crypto market.

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