Jamie Coutts from Real Vision is monitoring whether the Altcoin market might recover in June, but he suggests that traders should view network activity as the "North Star" for cryptocurrency investment.
An analyst stated that Altcoins may only have one final surge in this cycle, but only those with genuine utility and strong network activity will achieve price increases.
"I believe Altcoins will experience another significant surge. The question is whether this will be a sustained rally lasting six to twelve months," Real Vision's chief cryptocurrency analyst Jamie Coutts told Real Vision co-founder Raoul Pal during an X livestream on April 3rd.
Network Activity Will Become the "North Star" for Cryptocurrency Trading
"At this stage, I'm not entirely certain, but I do believe that quality Altcoin activity will return, and activity will drive price increases... We will definitely see some quality Altcoins experiencing a recovery," Coutts stated.
Cointelegraph reported in January that the number of existing Altcoins exceeds 36 million. However, according to CoinGecko data, Ethereum still dominates the total locked value (TVL) with 55.56%, followed by Solana (6.89%), Bitcoin (5.77%), BNB Smart Chain (5.68%), and TRON (5.54%).
Coutts suggested that traders should focus on the "tendency" of network activity and use it as a "North Star" for cryptocurrency trading, adding that he expects the Altcoin market to rebound in the next two months.
"I anticipate Altcoins will truly start to warm up by June. Provided that Bitcoin returns to its all-time high by then."
On March 28th, Coutts told Cointelegraph that Bitcoin could potentially set a new all-time high before the end of the second quarter, regardless of President Donald Trump's tariffs and potential economic recession concerns.
The total cryptocurrency market cap has dropped approximately 8% in the past 30 days
Against the backdrop of a generally sluggish cryptocurrency market, blockchain network activity has recently experienced a significant overall decline. On February 21st, Cointelegraph reported that the number of active addresses on Solana dropped to a weekly average of 9.5 million, a nearly 40% decrease from 15.6 million active addresses in November 2024.
Altcoin Indicators Flashing Red Lights
Meanwhile, several key indicators used by the cryptocurrency industry to determine the approaching Altcoin season suggest it remains far off.
According to CoinMarketCap data, Capriole Investments' Altcoin speculation index has dropped to 12%, a 53% decline since December 25th, during which Ethereum dropped from $3,490.
CoinMarketCap's Altcoin season index measures the performance of the top 100 cryptocurrencies against Bitcoin over the past 90 days, with a score of 14 out of 100, indicating a Bitcoin-dominated market and termed as "Bitcoin season".
The Altcoin season index chart was at 14 at the time of this article's publication
However, despite Bitcoin's dominance (typically viewed as a pullback level signaling Altcoin season) reaching 62.84%, some analysts believe this no longer signals the arrival of Altcoin season.
CryptoQuant CEO Ki Young Yu recently stated that Bitcoin's dominance "no longer determines the Altcoin season; trading volume does".
