Another altcoin season is coming, with some assets already showing overheated performance

Altcoin seasons are unpredictable and often short-lived, but can bring unexpected ￰0￱ crypto indexes may be one of the best tools to tap that ￰1￱ seasons are one of the biggest sources of fast returns on the crypto ￰2￱ assets outperform BTC, with outsized daily pumps. However, altcoin indexes are usually based on the top 100 coins and tokens by market ￰3￱ list is not constant, as narratives and assets ￰4￱ and tokens from previous cycles often disappear, displacing up to 77% of top crypto ￰5￱ from Market Vector warn that tapping altcoin market opportunities may be best done through ￰6￱ individual coins and tokens may be a risky game, and even the best-performing assets often erase a big part of their value just hours or even minutes after a ￰7￱ Cryptopolitan reported earlier, the altcoin season index was recently pushed to its highest value since December 2024, driven by a mix of solid blue-chip performance and unpredictable ￰8￱ seasons switch direction without warning The raw index based on the current top 100 assets is extremely ￰9￱ hovering sideways for months, the index took just days to enter overheated ￰10￱ index touched the overheated territory at 80 points, then returned to 78 points.

Historically, altcoin seasons have often arrived with a steep climb and a brief peak, which lasts for 1-3 weeks before deep drawdowns and ￰11￱ has left many investors either with losses or a habit of avoiding altcoins ￰12￱ also have varying price pressures, different for VC-backed projects, memes, utility tokens, and ￰13￱ that reason, Market Vector recommended using indexes for exposure to ￰14￱ smooth out the fluctuations in crypto Market Vector has produced multiple indexes, which combine exposure to BTC and relevant ￰15￱ recommendation for exposure to altcoins is to choose an index with selected ￰16￱ Vector recalculates its indexes quarterly, removing irrelevant or underperforming ￰17￱ means even if an altcoin or token rallies during one period, it would be removed if it wipes out all ￰18￱ also mean an investor is not stuck holding underperforming assets, while missing out on other ￰19￱ altcoins and tokens offer only short-term rallies, later drifting sideways for relatively long ￰20￱ Vector recommends choosing Coinbase 50 ( Coin50 ) or a similar ￰21￱ market product tracks the performance of BTC, but offers outsized gains during altcoin rallies.

However, the index has a lower risk on the downside, due to the effect of BTC. Coin50 – BBR – MVDA5 Market Vector Indexes |