Haciyev Reşit 
The strength of altcoins in the cryptocurrency market has noticeably increased at the beginning of January 2026. The Altcoin Season Index rose to 55, the highest level in the past three months, highlighting increased short-term market activity and investor interest. Although a full altcoin season has not officially started, analysts note that this momentum is building and could signal a broader altcoin rally in the coming days. The rising index indicates that altcoins are gaining strength against Bitcoin and that investor capital is starting to flow toward alternative cryptocurrencies.
What is the Altcoin Season Index and Why It Matters
The Altcoin Season Index measures periods when alternative cryptocurrencies outperform Bitcoin. The index signals an altcoin season if at least 75% of the top 50 non-stablecoin cryptocurrencies outperform Bitcoin over a 90-day period.
The current level of 55 shows growing altcoin strength, although it is not yet high enough to officially indicate an altcoin season. Market observers, however, point to signals supporting the possibility of an approaching altcoin season. According to analysts, the OTHERS/BTC index has reached a bottom and is showing upward signs; in previous cycles, similar conditions preceded major altcoin rallies.
Key Trends in Altcoin Momentum
Simon Dedic, founder of Moonrock Capital, notes that the altcoin market is currently behaving as expected. He believes that momentum may intensify through the end of Q1 and mid-Q2, creating a foundation for breakout and accelerated price movements.
Joao Wedson, CEO of Alphractal, highlights capital flows, stating that mini altcoin seasons emerge approximately every 48 hours, while BTC versus altcoin performance fluctuates over 12-hour periods. Wedson explains:
“Sometimes BTC moves first, and altcoins follow later. This rotation is a way to efficiently move capital from BTC to altcoins and back again.”
Altcoin Season Expectations and Leading Sectors
As discussions around a potential altcoin season grow, analysts are evaluating which groups of altcoins are likely to lead. Analyst Kate Miller identifies meme coins as potential high-gain altcoins:
“Meme coins could generate significant gains in the next altcoin season; however, only a few tokens might achieve 100X or higher returns.”
Since the beginning of 2026, meme coins have generally performed positively, and despite brief pullbacks, most top-tier tokens have maintained their gains. Artificial intelligence (AI) tokens have also emerged as another standout group among altcoins. According to Artemis Analytics, AI tokens have gained 20.9% since the start of the year, making them the best performers outside Bitcoin.
Decentralized exchange (DEX) tokens also show potential as early leaders of the altcoin season. Indicators of early positioning include rising adoption, increasing share of spot and perpetual trading volumes compared to centralized exchanges, accumulation of DEX tokens by major investors during price weakness, and some DEX tokens beginning to move independently from Bitcoin.
Assessment
The Altcoin Season Index reaching a three-month high indicates increasing momentum in the altcoin market in the short term. Meme coins, AI tokens, and DEX tokens are the main groups investors should monitor closely. The first quarter of 2026 is expected to test altcoin performance against Bitcoin and accelerate capital rotation, making it a critical period to watch in the market.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.