Grayscale: Altcoin Season Has Already Arrived in 2025

Key Highlights

• Bitcoin lags despite hitting $124,000 while altcoins surge ahead
• Stablecoin law in the US sparks fresh momentum for smart contracts
• ETF approvals set the stage for the next big crypto rally

Grayscale Sees Altcoins Surging as Bitcoin Lags in 2025

Grayscale believes the third quarter of 2025 marked the start of a new “alt season,” though this rally looks different from previous cycles. The company attributes the trend to Bitcoin’s underperformance compared to other cryptocurrencies, alongside the rising impact of centralized exchanges.

According to a report, all major sectors, including Bitcoin, Ethereum, AI tokens, and smart contracts delivered positive returns in Q3. Still, altcoins captured more momentum. Grayscale noted that the smart contract sector benefited from July’s stablecoin legislation in the US, while AI tokens and Bitcoin posted more modest results.

Bitcoin Struggles to Keep Pace

Bitcoin climbed to a record high of over $124,000 in August, yet its gains fell short compared to altcoins. Grayscale described the trend as an alt season—though unlike earlier cycles, Bitcoin’s dominance decline has been paired with broader growth in different crypto categories.

The report also pointed out several market shifts driving altcoin strength:

• Companies holding more tokens on their balance sheets

• Increasing adoption of stablecoins in the US

• Higher centralized exchange trading volumes

Still, both Bitcoin and altcoins remain behind gold and equities in reaching fresh highs, partly due to continued stablecoin outflows from exchanges.

Outlook for Crypto ETFs

As one of the largest asset managers in digital assets, Grayscale remains central in shaping new investment products. The company said the SEC’s approval of new crypto ETF listing standards should bolster markets in Q4. One of Grayscale’s multi-asset ETFs already gives exposure to leading coins like Bitcoin, Ethereum, XRP, Solana, and Cardano.

Grayscale sees the third quarter as a turning point, with investor interest shifting from Bitcoin to altcoins amid regulatory change. Upcoming legislation and expanding ETF products could decide whether this distinct alt season builds into a broader rally across global markets.