In February 2025, the cryptocurrency market witnessed a promising altcoin rally, largely driven by strong fundamentals and institutional backing via ETF approvals, as key players in the industry provide support for this targeted growth.
This selective “altseason” marks a departure from past broad-based rallies, pointing to a more fundamentals-driven market with institutional influence, significantly impacting Ethereum and other major altcoins.
Institutional Backing Fuels Selective Altcoin Rally
ETF approvals are significantly impacting this year’s altseason, creating a selective rally focused on assets with institutional backing. Major players emphasize the need for strong fundamentals to succeed during this period.
Figures like Ki Young Ju have highlighted 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, CryptoQuant. This is expected to result in substantial gains only for high-quality projects intertwined with institutional narratives.
Ethereum Leads Gains as ETF Influence Grows
ETF-backed altcoins have seen an uptake in investor interest, pushing Ethereum and high-cap Layer-1s to benefit. Institutional visibility is fueling the market, contrasting with past rallies that heavily relied on retail participation.
The current trend is supportive of more targeted performances within the market. A shift in Bitcoin dominance is being observed as liquidity moves into DeFi ecosystems, marking an important altseason indicator.
Quality Over Hype: A New Altseason Dynamic
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.
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