Ethereum To Drive Altcoin Season Again, But Is This Time Different?

bitcoinistPublished on 2026-01-10Last updated on 2026-01-10

Abstract

Signs of an upcoming altcoin season are emerging through on-chain behavior and trader activity, with Ethereum at the center. Despite price consolidation around $3,000, Ethereum maintains high network usage with active addresses near 472,000—unlike previous cycles where consolidation led to declining engagement. This suggests potential leadership in a new altcoin cycle. Other major altcoins also show early signals: XRP whales are not moving tokens to exchanges, indicating holding behavior rather than profit-taking. Solana is seeing renewed retail participation, though not at euphoric levels yet. BNB exhibits consistently large spot orders despite dull price action, reminiscent of pre-2021 altcoin season activity. If Ethereum drives the next altcoin season, it may be more collective and structurally different from past cycles.

The idea of an altcoin season rolling in is still active, and early signals are starting to surface. These signs are not through price moves but through changes in on-chain behavior and trader activity.

At the center of these observations is Ethereum, the leading altcoin, which has always led previous altcoin seasons. However, other interesting behavior is showing up in other large-market-cap cryptocurrencies, which implies any altcoin season from here might be different from previous ones.

Ethereum Usage Holds Even With Price Consolidation

On-chain signals linked to an altcoin season are beginning to appear across several large-market-cap cryptocurrencies, which implies that any rotation into altcoins may not be driven by Ethereum alone this time. That said, Ethereum is still exhibiting a set of familiar traits that have always placed it at the center of past altcoin cycles.

Related Reading: Ethereum Enters Overbought Levels With Weekend Pump, Why A Crash Could Be Coming

For example, on-chain data shows Ethereum maintaining activity levels close to cycle highs even as its price continues to move sideways, fluctuating above and below $3,000. In previous market periods, consolidations of this nature were typically paired with a noticeable decline in network usage as traders lost interest and speculative activity cooled.

This time, that pullback in engagement has not materialized. Active addresses and transaction activity are still high, with the recent numbers coming in around 472,000 active addresses. In previous altcoin cycles, similar conditions appeared just before Ethereum began to outperform Bitcoin and led the rotation into altcoins. Now, history might be repeating itself.

Source: Chart from CryptoQuant

XRP, Solana, And BNB Reflect Early Altcoin Season Positioning

In addition to Ethereum, behavior across other large-cap altcoins adds context to the setup of an incoming altcoin season. Notably, on-chain data tied to XRP shows that whales are not sending tokens to exchanges after recent price moves. The current lack of sustained inflows from XRP whales into crypto exchanges means that larger holders are holding their positions, which is a behavior more consistent with anticipation than profit-taking.

Related Reading: Altcoin Season In Q1? Bitcoin, Ethereum Breakdown Maps Out Performance

At the same time, Solana is also beginning to see a return of retail participation. Trading activity is picking up, but the data is still far below the levels typically associated with euphoric phases. Historically, this stage has appeared before momentum expands, when interest starts to grow, not at the end of it.

Another piece of the on-chain activity comes from BNB, where average spot order sizes have been large and consistent despite relatively uneventful price action. BNB’s price action looks boring on the outside, but average spot order sizes are at levels similar to those seen before the altcoin season in 2021, and this can be taken as a sign of something interesting brewing beneath the surface.

Taken together, these on-chain signals reinforce the idea that if Ethereum does drive the next altcoin season, the course of events might be much more collective and differ from the previous altcoin seasons.

ETH trading at $3,097 on the 1D chart | Source: ETHUSDT on Tradingview.com

Related Questions

QWhat are the early signals of an altcoin season mentioned in the article, and how are they different from price moves?

AThe early signals are not through price moves but through changes in on-chain behavior and trader activity, such as sustained network usage and whale holding patterns.

QWhy is Ethereum considered central to the potential altcoin season, and what specific on-chain behavior is it exhibiting?

AEthereum is considered central because it has always led previous altcoin seasons. It is exhibiting sustained high activity levels, with around 472,000 active addresses, even as its price consolidates, which is a trait seen before past cycles.

QWhat does the on-chain data for XRP indicate about whale behavior, and what does this suggest for the market?

AThe on-chain data shows that XRP whales are not sending tokens to exchanges after recent price moves, indicating they are holding their positions. This behavior suggests anticipation rather than profit-taking.

QHow is retail participation in Solana changing, and what historical significance does this have?

ASolana is beginning to see a return of retail participation, with trading activity picking up. Historically, this stage appears before momentum expands and interest grows, not at the end of a cycle.

QWhat is notable about BNB's average spot order sizes, and why is this significant in the context of an altcoin season?

ABNB's average spot order sizes have been large and consistent despite uneventful price action, similar to levels seen before the 2021 altcoin season. This suggests underlying interest and potential for momentum.

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