Altcoin Season 2025: Why ETH, SOL, XRP & BNB May Lead the Next Rally

After months of silence, the altcoin market is finally showing signs of life. The Altcoin Season Index has climbed from 34 to 50 in just a few weeks, a clear hint that momentum is building.

Popular crypto trader VirtualBacon believes we may already be in the early stages of an altcoin season, even if it doesn’t feel like it yet.

So, what’s really going on in the market right now?

Momentum Is Building Slowly

According to VirtualBacon, altcoin season may have already started 2–3 weeks ago. But many people haven’t noticed it yet. And it’s because the price movements have been slow and only happening in select coins.

Unlike previous altcoin seasons where almost everything pumped together, this time only a few coins are making small moves, and they’re doing it quietly.

At the same time, Bitcoin dominance is slowly dropping, now at 61.5%. This is often a sign that capital is starting to flow out of Bitcoin and into altcoins.

All Eyes on September

One of the major events to watch is the next Federal Reserve meeting in September. While the Fed recently kept interest rates steady, with no surprises, the next meeting could bring a shift.

There’s speculation that the Fed might loosen the Supplementary Leverage Ratio (SLR) rule. If that happens, banks would be able to buy more U.S. government bonds with less cash, which could boost liquidity, basically, more money entering the system.

At the same time, the U.S. Treasury is refilling its TGA account, which usually pulls cash out of markets. But if the SLR rule is eased, these effects might cancel each other out, or even result in more money flowing into the markets.

Altcoins Worth Watching

VirtualBacon believes the altcoin rise will be slow and steady, not a sudden pump. He recommends keeping an eye on major coins like Ethereum (ETH), Solana (SOL), Ripple (XRP), and Binance Coin (BNB). These big names could lead the way if the market picks up speed.

However, he also warns that smaller altcoins still carry more risk.

Not Every Altcoin Will Survive

Supporting this cautious view, well-known trader Crypto Rover warns that this phase is all about survival. Not every altcoin will perform well. In the past, even weak projects gained just because of hype. But now, traders are smarter, and only solid coins will win.

Until something major changes, the market may continue in this “waiting mode.”