In February 2025, the cryptocurrency market witnessed a promising altcoin rally driven by strong fundamentals and institutional support.
Institutional Support as a Catalyst
One significant factor influencing the altseason has been ETF approvals. Key market players emphasize the need for strong fundamentals to succeed during this period.
Figures like Ki Young Ju noted the lack of retail FOMO compared to previous cycles. "Most altcoins won't make it in 2025 unless they have strong fundamentals and institutional tailwind from ETF approvals." - Ki Young Ju, CEO of CryptoQuant. This is expected to lead to substantial gains only for high-quality projects intertwined with institutional narratives.
Ethereum Rides the Growth Wave
Altcoins with ETF support are attracting investor interest, which has a positive effect on Ethereum and highly capitalized Layer-1 platforms. Institutional visibility is fueling the market, contrasting with past rallies that heavily relied on retail participation.
The current trend supports more targeted performances within the market. A shift in Bitcoin dominance is being observed as liquidity moves into DeFi ecosystems.
Quality Projects Over Hype
Previous altseasons saw broad market rallies post-Bitcoin bull runs. However, the present cycle mirrors a more targeted selection of winning projects, reminiscent of patterns emphasizing fundamentals over hype.
Current data from CryptoQuant and expert insights suggest a focus on quality and institutional demand. This is expected to influence which projects sustainably outperform and maintain momentum over time.
The altseason of 2025 highlights the importance of fundamentals and institutional support within the cryptocurrency market, emphasizing that project selection is based on quality rather than speculation.
