We explain what the Altcoin Index really says, how Bitcoin dominance shapes alt seasons and where promising niches fit in.
When people say “the market’s rotating into alts,” they’re usually looking at a simple scoreboard: are altcoins, as a group, beating Bitcoin lately?
That’s the idea behind the Altcoin Index (aka Altcoin Season Index). It checks how many top coins beat Bitcoin over a recent window (usually ~90 days). If the majority wins → altseason vibes. If not → Bitcoin season.
Altcoin Season Index / coinglass
The index doesn’t predict the future; it just tells you where the current momentum sits—BTC or “everything else.” For newcomers, it’s a quick context tool: Am I swimming with the current or against it?
Bitcoin dominance is BTC’s share of the total crypto market value:
▪️When dominance rises, BTC is outmuscling the rest (common early in bull markets or during risk-off phases).
▪️When dominance falls, alts are catching bids across the board (typical of mid/late-cycle risk-on phases).
How to use it with the Altcoin Index:
▪️High/steady dominance + low alt index: capital favors BTC; many alts lag.
▪️Falling dominance + high alt index: broad rotation into alts; risk appetite is up.
▪️Mixed signals: expect chop—use smaller sizes and focus on fundamentals.
Yes, the market looks ready to hand alts the mic. However, this won’t be 2017/2021 re-run. Back then, attention (and liquidity) had fewer places to go. Today, instead of “3,000 tokens,” it feels like 3,000,000. Not everything pumps.
Rotation will likely be pickier, more sector-led, and shorter-lived in pockets. So your edge is selection, not FOMO. Find the niches with verifiable usage and a path to stickiness.
“Altcoins” isn’t one thing—it’s dozens of use cases competing for attention and capital. Focusing on niches helps you filter noise, find useful network applications, and spot where real adoption (users, fees, volumes) is growing.
Real-World Assets (RWA):
▪️What it is: tokenizing traditional assets (cash, bonds, gold, real estate) so they can move on-chain (e.g., stablecoins, national bonds, tokenized securities).
▪️Why it matters: potential for 24/7 markets, fractional ownership, and faster settlement.
▪️What to watch: issuer credibility, collateral audits, and the actual, real-world demand (not just headlines).
Layer-1 and Layer-2 blockchains (infrastructure bets):
▪️What it is: base networks (L1) and scaling layers (L2) that apps run on.
▪️Why it matters: more users + more apps = more fees/utility flowing through the network.
▪️What to watch: developer activity, users, fees, uptime, and whether real apps (not just speculation) are gaining traction.
Perpetual DEXs (on-chain leveraged trading):
▪️What it is: decentralized exchanges for perpetual futures (no expiry).
▪️Why it matters: consistent trader demand can generate fees for protocols and tokenholders (depending on design).
▪️What to watch: liquidity depth, funding rates, oracle design, and risk controls.
AI / DePIN (decentralized compute & physical networks):
▪️What it is: networks that coordinate compute, storage, bandwidth, or sensors—often to serve AI and real-world workloads.
▪️Why it matters: AI needs compute and data; token-incentivized networks try to crowd-source both.
▪️What to watch: eal clients/use, hardware online, reliability, payouts vs costs, partnerships beyond crypto.
Liquid Staking & Restaking (LST/LRT):
▪️What it is: secure networks depositing (staking) and receiving a liquid token that represents your stake; restaking re-uses that security for extra yield.
▪️Why it matters: turns idle assets into productive collateral, powering DeFi while you earn.
▪️What to watch: smart-contract risk, slashing/insurance, yields, integrations (where the liquid token is actually used).
Exchange-native tokens are a special category. They unlock utility inside a platform that you can benefit from in day-to-day crypto operations.
For example, EXMO Coin opens a plenty of possibilities:
▪️Improve Earn conditions via EXM-based tiers on selected assets.
▪️Enhance referral/loyalty benefits during promos.
▪️Pay for EXMO Premium to lower maker/taker fees.
▪️Benefit from the asset that has a team eager to update its framework.
Regional note: Residents of the EEA do not have access to Earn tiers (Basic only). Other perks may also vary by jurisdiction—always check in-app.
The awareness of the Altcoin Index helps you see where momentum sits. If you explore niches like RWA, L1/L2, and perp DEXs, you can find some golden veins. In any case, DYOR is critical, and risk management should always be a priority.
This article is for educational purposes only and should not be considered financial advice. Cryptocurrency investments involve risk, and you should always do your own research or consult a licensed financial advisor before making decisions.