Bitcoin’s share of the overall cryptocurrency market, known as Bitcoin dominance, has fallen to 55.81%, down from its November 2024 high of 61.53%. This decline is a key signal for what traders call “altseason”—a period when alternative cryptocurrencies (altcoins) outperform Bitcoin. Over 75% of the top 100 altcoins have been consistently outpacing Bitcoin recently, making now a prime time for newcomers to explore the altcoin market.

Bitcoin dominance measures how much of the total crypto market value belongs to Bitcoin compared to all other cryptocurrencies. When Bitcoin’s dominance drops, it often means that capital is flowing into altcoins, creating opportunities for potentially higher returns in this category.

Currently, Bitcoin dominance is showing signs of further decline, with a potential drop to 53% based on technical indicators like the 100 and 200-day Exponential Moving Averages (EMAs). This suggests that altseason is just heating up. To make smart investments during this time, beginners should consider these five points before buying an altcoin:

### 1. **Purpose and Real-World Use Case**
The most important question to ask about any altcoin is: What problem does it solve? For example:
– **Polygon (MATIC):** Speeds up and reduces the cost of Ethereum-based transactions.
– **Chainlink (LINK):** Connects smart contracts to real-world data for use in industries like banking and decentralized finance.

Tokens without real-world utility may bring short-term gains but often result in losses once the hype fades.

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### 2. **Market Cap and Risk**
The size of an altcoin’s market capitalization (market cap) tells you how established it is:
– Large-cap altcoins like Ethereum (ETH) and Binance Coin (BNB) are safer but usually offer moderate returns.
– Smaller or mid-cap projects like Aptos (APT) or meme coins like Ripple (XRP) carry higher risks but can deliver bigger gains.

Liquidity is also crucial—it ensures you can sell your tokens quickly if prices swing.

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### 3. **Team and Development**
Always evaluate the team behind an altcoin. Are they credible? Do they consistently update and improve the project? For example:
– **Cardano (ADA):** Known for its academic rigor and highly active developer community.
– **Optimism (OP):** An Ethereum scaling solution with regular updates and a transparent team.

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### 4. **Community Support**
Altcoins with strong community backing often perform better. Look at social media activity, partnerships, and integrations:
– **Solana (SOL):** Recently outperformed Ethereum in transaction volume and protocol revenue.
– **Dogecoin (DOGE):** Started as a meme but gained adoption for tipping and microtransactions thanks to its active fanbase.

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### 5. **Volatility and Regulations**
Altcoins are riskier than Bitcoin, so understanding their price history and regulatory status is important. For example:
– **XRP:** Despite facing lawsuits, it remains a top choice for cross-border payments.
– **Stellar (XLM):** Similar to XRP but focuses on central bank digital currencies.

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### Top Altcoins to Watch
Here’s a quick rundown of some promising tokens and their potential price targets:

– **Ethereum (ETH):** Buy zone: $3,200–$3,600; Target: $7,000.
– **Solana (SOL):** Buy zone: $200–$210; Target: $359.
– **Aptos (APT):** Buy zone: $11.37–$13.50; Target: $28.37.
– **Toncoin (TON):** Buy zone: $4.091–$6; Target: $12.791.
– **Kaspa (KAS):** Buy zone: $0.13506–$0.15397; Target: $0.29098.
– **Injective (INJ):** Buy zone: $22.94–$32.39; Target: $77.41.
– **Render (RNDR):** Buy zone: $6.6178–$8.4950; Target: $19.9836.
– **Base-based Brett (BRETT):** Buy zone: $0.15–$0.18; Target: $0.34559.
– **Gigachad (GIGA):** Buy zone: under $0.042699; Target: $0.121855.
– **Arweave (AR):** Buy zone: $20.98–$49.55; Target: Higher than 2024 peak.

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### Market Outlook
The total cryptocurrency market cap, excluding Bitcoin, could rise to $4.47 trillion during this cycle, potentially doubling the value of portfolios focused on these top altcoins. Traders could see gains between 2X and 3X depending on how long the altseason lasts, Bitcoin’s performance, and institutional interest in crypto markets.

For newcomers, this is an exciting time to enter the world of altcoins—but always do your research and manage risks wisely!