TLDR
- Arthur Hayes expects a major altcoin season to begin with selective asset growth this summer.
- He believes Ethereum will outperform Solana due to its strong fundamentals and developer base.
- Hayes noted that low-quality tokens are unlikely to perform well in the upcoming cycle.
- Ethereum remains the top network by total value locked and active development activity.
- Solana has rallied strongly, but may not match Ethereum’s performance in the next bull run.
Altcoin season is expected to return this summer, with Ethereum (ETH) predicted to outperform Solana during the upcoming rally. Arthur Hayes, former BitMEX CEO and current head of Maelstrom, confirmed Ethereum’s stronger outlook. He emphasized that only high-quality digital assets will benefit, while weaker projects may remain stagnant.
Altcoin season may not mirror the 2021 cycle, as selective gains are more likely in the current market structure. Hayes stated that altcoins with no clear use case, high fully diluted valuations, and low circulating supply will likely underperform. Despite a strong interest in altcoins, capital may concentrate on established ecosystems.
The broader crypto market is currently in a consolidation phase, but momentum for altcoin season continues building. Bitcoin dominance shows weakness, and analysts have pointed to a potential downturn. This environment may provide the conditions for a strong altcoin breakout over the next few months.
Ethereum Shows Strength Ahead of Expected Altcoin Season
Arthur Hayes favors Ethereum over Solana for this altcoin season due to Ethereum’s ecosystem strength and long-term developer commitment. He noted that Ethereum leads in total value locked, active developers, and decentralized applications across the blockchain industry. Ethereum’s high network security and upcoming technical upgrades further support its position.
Hayes highlighted that Ethereum has faced significant criticism recently, especially concerning price action and ecosystem growth. However, he argued that Ethereum remains the most secure proof-of-stake network with meaningful user adoption. He believes this will attract new capital flows during the altcoin season.
Ethereum co-founder Vitalik Buterin has shared plans to boost scalability without compromising decentralization. Key developments include EIP-4444, stateless verification, and distributed history storage. These upgrades aim to improve Ethereum Layer-1 efficiency, positioning it well ahead of the next altcoin season.
Solana Sees Momentum but Faces Competition from Ethereum
Solana’s price increase from $7 to $172 over the past cycle generated significant attention, but Hayes remains cautious about Solana’s capacity to maintain leadership. He views Ethereum as a stronger candidate for outperforming in the next altcoin season.
Hayes acknowledged Solana’s technical improvements and recent ecosystem expansion, including rising user adoption and application growth. However, he suggests fresh capital will more likely flow into Ethereum due to its stability. Solana may still see gains, but not on the same scale as prior cycles.
Despite Solana’s progress, its comparison with Ethereum highlights critical long-term value and infrastructure differences. The market may reward more mature protocols with better fundamentals. This could lead to Solana trailing Ethereum during the peak of altcoin season.
Bitcoin Dominance May Fall as Altcoin Season Gains Strength
Hayes expects the altcoin season to play out while Bitcoin dominance increases, especially if macro trends stay favorable. However, analysts like Captain Faibik predict a drop in Bitcoin dominance, signaling a strong altcoin cycle. If this happens, Ethereum and other quality projects may lead the rally.
HODL your Altcoins tightly..!!
Stay Patient, Trust the Process & gear up for the next Bullish Rally.. 📈🔜#Crypto #Altcoins #BullRun pic.twitter.com/umTbKVLDxL
— Captain Faibik 🐺 (@CryptoFaibik) May 19, 2025
Recent market signals suggest Bitcoin’s momentum is slowing, creating a possible opportunity for altcoins to gain market share. A declining Bitcoin dominance often marks the beginning of a strong altcoin season. Historical trends show that capital rotation supports sharp altcoin movements during such periods.
The combination of technical upgrades, strong ecosystems, and renewed attention supports the outlook for Ethereum and other leading assets. Altcoin season may take shape gradually, but focused demand could significantly increase selective altcoins. Hayes believes strategic allocation to quality altcoins will define success in this phase.
