Altcoin Season Index Meaning

What Is the Altcoin Season Index?

The Altcoin Season Index is a metric used to measure the performance of altcoins relative to Bitcoin.

This index compares the returns of the top 50 altcoins over the past 90 days against Bitcoin’s return during the same period, calculating the proportion of altcoins that have outperformed Bitcoin. Common thresholds include: a value of ≥75 indicates “altseason” (widespread altcoin outperformance), ≤25 means Bitcoin is dominant, and values in between suggest no clear rotation. The index acts as a barometer for market sentiment and capital flows, helping traders determine whether it is time to increase their exposure to altcoins.

Why Is the Altcoin Season Index Important?

It directly impacts portfolio allocation and risk exposure.

In crypto markets, capital often rotates between Bitcoin and altcoins. A high index level signals that more altcoins are outperforming Bitcoin, suggesting potential higher returns for quality altcoin holdings. Conversely, a low index means Bitcoin is more resilient, and aggressively chasing altcoins may increase risk of drawdown. For participants in spot trading, derivatives, or yield products, the index serves as a key reference for entry and exit strategies.

How Does the Altcoin Season Index Work?

The index quantifies the percentage of leading altcoins that have outperformed Bitcoin.

It selects a sample of large-cap altcoins—typically the top 50 by market capitalization—and calculates each coin’s price change over the past 90 days. These returns are then compared to Bitcoin’s performance during the same period to identify which coins have “outperformed.” If 75% or more of these coins beat Bitcoin, it is considered “altseason.” This approach avoids focusing on isolated hot coins, instead highlighting whether the overall altcoin market is stronger than Bitcoin.

The threshold helps distinguish between isolated outperformance and sector-wide strength. A surge in a single blockchain or trending theme does not necessarily mean altseason; only when a majority of sampled coins outperform Bitcoin does it signal broad market preference for altcoins.

Typical Market Behavior During Altcoin Season Index Changes

When the index rises, the altcoin sector is generally active, with increased trading volumes and heightened discussion.

On exchanges like Gate, spot trading segments such as layer 1 ecosystems, AI tokens, RWAs, and gaming coins often see simultaneous surges in volume and price when the index climbs. For example, periods where Ethereum ecosystem tokens, Solana ecosystem tokens, and cross-chain tools all outperform Bitcoin for several weeks typically coincide with the index approaching or exceeding 75.

In DeFi, higher annualized yields from liquidity mining and capital moving from stablecoin pools to riskier token pools are common during altseason. Increased demand for NFTs and new chain airdrops also contribute to users rotating across different ecosystems.

When the index declines, market preference shifts towards Bitcoin and top-tier assets. You may notice funding rates converging on derivatives platforms, shorter-lived hot narratives, and rallies that fizzle out quickly—conditions better suited for Bitcoin- or stablecoin-focused strategies.

How to Use the Altcoin Season Index in Practice

Treat it as a “rotation signal” and combine with risk management for execution.

Step 1: Monitor index ranges and trends. If the index stays elevated and nears 75, it indicates broad altcoin strength; if it drops below 40, risk appetite is cooling.

Step 2: Combine with Bitcoin Dominance. Bitcoin dominance measures Bitcoin’s share of total crypto market capitalization. Falling dominance alongside a rising Altcoin Season Index often signals it’s time to increase allocation to quality altcoins; rising dominance with a low index suggests prioritizing Bitcoin or stablecoins.

Step 3: Select sectors and coins on Gate. Focus on mainstream layer 1s and infrastructure projects with solid fundamentals and ecosystem support; buy in batches and avoid concentrating on a single theme. Set stop-loss and take-profit levels to prevent emotional trading.

Step 4: Adjust tools and timing. During mid-altseason, favor spot trading over leverage; use grid trading or dollar-cost averaging to smooth volatility; establish exit conditions such as an index drop below a certain threshold or a reversal in dominance.

Step 5: Review and adjust. Every two weeks, check both your positions and the index trend. If the index retreats from highs and sector momentum cools significantly, consider reducing exposure or shifting back to Bitcoin.

Recent Trends and Data on the Altcoin Season Index

Over the past year, the index has fluctuated within a range—no prolonged extreme altseason has occurred.

From all of 2025 through early 2026, the market experienced periodic rotations between Bitcoin and major layer 1s. Several times in H1 2025, the index approached high levels but never sustained a value ≥75 for long—a hallmark of full-blown altseason. As of January 2026, the index mostly oscillates between 40-60, indicating selective opportunities rather than broad rallies.

Key factors include: surges in Bitcoin’s dominance driven by major events attracting new capital; hot narratives (AI, social networks, layer 1 ecosystems) creating pockets of strength but with limited spillover effects. Capital increasingly favors coins with strong fundamentals and liquidity—weak altcoins are more vulnerable during corrections.

Watch for “sustainability.” Only when multiple sectors rally simultaneously with expanding volume and net inflows will a stable index at ≥75 become more likely. If rallies are short-lived or isolated to specific themes, expect the index to fall back quickly.

Altcoin Season Index vs. Bitcoin Dominance: What’s the Difference?

One measures “relative strength,” the other tracks “market share.”

The Altcoin Season Index gauges whether most leading altcoins have outperformed Bitcoin over the last 90 days—a relative performance metric. Bitcoin Dominance shows what percentage of total crypto market capitalization belongs to Bitcoin—a structural metric. The two are often used together: a rising index combined with falling dominance confirms both breadth and intensity in altcoin rallies; if only the index rises but dominance does not fall, it may be driven by just a few strong coins.

Risk profiles differ as well: a high Altcoin Season Index signals sector-wide strength but comes with faster potential reversals; changes in dominance highlight capital shifting between blue-chip and risk assets. Using both metrics together enables more comprehensive portfolio management.

Key Terms

• Altcoin: Any cryptocurrency other than Bitcoin or Ethereum; usually smaller cap and higher volatility.
• Market cap ranking: Cryptocurrencies ranked by total market capitalization, used to assess relative size and influence.
• Relative Strength Index (RSI): A technical indicator measuring overbought or oversold conditions on a scale from 0–100.
• On-chain data: Real data recorded on blockchains—such as transactions, holdings, liquidity—used for market analysis.
• Rotation effect: The phenomenon where capital flows between asset classes, causing certain coins to outperform during specific periods.

FAQ

What does an Altcoin Season Index reading of 100 mean?

An Altcoin Season Index of 100 signals an extreme phase of altseason—altcoins are outperforming Bitcoin at historic levels. At this point, gains in altcoins typically far exceed those of Bitcoin, and capital pours into alternative projects. However, such extremes usually indicate mounting risks; historically, sharp pullbacks have followed after the index peaks.

How should investors adjust their strategy based on the Altcoin Season Index?

The index can be used as an allocation signal. When it is low (e.g., 10–30), altcoins may be undervalued with favorable risk/reward; at mid-levels (40–70), moderate exposure to trending sectors is reasonable; when extremely high (80+), it’s wise to be cautious—consider taking profits or reducing positions. Remember that this is just a reference tool; always combine with your own risk tolerance and project fundamentals before making decisions.

How does the Altcoin Season Index relate to BTC price action?

The Altcoin Season Index typically moves inversely or independently from BTC price trends. When BTC rallies strongly, capital tends to concentrate in Bitcoin—lowering the index; when BTC consolidates or dips slightly, funds may rotate into altcoins—raising the index. However, they aren’t strictly negatively correlated; sometimes BTC and altcoins rally together, which can push the index higher as overall market enthusiasm increases.

Where can you track the Altcoin Season Index?

You can monitor the Altcoin Season Index in real time on platforms such as CoinMarketCap, TradingView, Santiment, and others. Gate and other major exchanges also provide index references in their market analytics toolbars. It’s recommended to cross-check data across multiple sources for consistency, and pay attention to 7-day or 30-day moving averages to filter out short-term noise for clearer trend analysis.

Should beginners enter altcoins early or mid-altseason?

From a risk/reward perspective, early altseason (index 30–50) offers both opportunity and risk—it requires strong coin selection skills and disciplined stop-losses; mid-altseason (index 50–70) sees some gains already realized but generally presents lower risk. Beginners are advised to start small during mid-altseason phases to learn market mechanics; gain experience before attempting earlier-stage entries. Avoid chasing tops—take profits gradually before the index peaks to reduce risk of being caught in reversals.

References & Further Reading

• https://tangem.com/en/blog/post/what-is-altseason/
• https://finance.yahoo.com/news/altcoin-season-index-hits-3-135723601.html
• https://www.sofi.com/learn/content/what-is-altcoin-season/
• https://www.delubac.com/en/files/crypto/altcoin-season/
• https://coinmarketcap.com/charts/altcoin-season-index/
• https://trustwallet.com/blog/guides/what-is-the-altcoin-season-index
• https://www.coinglass.com/pro/i/alt-coin-season
• https://swapspace.co/blog/understanding-the-altcoin-season-index