Altcoins may have just one last rally this cycle, but only those with real utility and strong network activity will see price gains, according to an analyst. 

“I think there will be one more breadth thrust from altcoins. The question is, is it a sustained rally that we will see for six to twelve months,” Real Vision chief crypto analyst Jamie Coutts told Real Vision co-founder Raoul Pal on an April 3 X livestream.

Network activity will be the ‘north star’ for how to trade crypto

“At this stage, I am not too sure, but I do believe that quality altcoins where activity returns, activity drives prices …we will definitely see a recovery in some of these more high-quality names,” Coutts said.

Cointelegraph reported in January that there were over 36 million altcoins in existence. However, Ethereum still holds the majority share of total value locked (TVL) with 55.56%, followed by Solana (6.89%), Bitcoin (5.77%), BNB Smart Chain (5.68%), and Tron (5.54%), according to CoinGecko data.

Coutts said traders should watch where the network activity “is gravitating” and use that as their “north star” for how to trade in crypto, adding he sees an altcoin market upswing within the next two months. 

“I’m expecting by June to see altcoins really start to pick up again. Predicated on the fact that Bitcoin is back at all-time highs by that point.”

On March 28, Coutts told Cointelegraph that Bitcoin could reach all-time highs before the end of Q2 regardless of whether there is more clarity on US President Donald Trump’s tariffs and potential recession concerns.

The total crypto market cap is down around 8% over the past 30 days. Source: CoinMarketCap

Blockchain network activity across the board has recently experienced sharp declines amid a broader crypto market downturn. On Feb. 21, Cointelegraph reported that the number of active addresses on the Solana (SOL) network fell to a weekly average of 9.5 million in February, down nearly 40% from the 15.6 million active addresses in November 2024.

Altcoin indicators are flashing red

Meanwhile, several key indicators the crypto industry uses to determine an incoming altcoin season suggest it’s still nowhere in sight.

Capriole Investments’ Altcoin Speculation Index has dropped to 12%, down 53% since Dec. 25, the same period during which Ether fell 49% from $3,490, according to CoinMarketCap data.

Related: When will altseason arrive? Experts reveal what’s holding back altcoins

CoinMarketCap’s Altcoin Season Index, which measures the top 100 cryptocurrencies against Bitcoin’s performance over the past 90 days, is reading a score of 14 out of 100, leaning toward a more Bitcoin-dominated market, referring to it as “Bitcoin Season.”

The Altcoin Season Index Chart is sitting at 14 at the time of publication. Source: CoinMarketCap

However, while Bitcoin dominance — a level often watched for retracements that signal an altcoin season — sits at 62.84%, some analysts argue it’s no longer as relevant as a signal for altcoin season.

CryptoQuant CEO Ki Young Yu recently said that Bitcoin Dominance “no longer defines altseason — trading volume does.”

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.