For crypto investors, there’s only one period better than the winter holidays, and that’s “altcoin period.” During this period of the year, lesser-known cryptocurrencies with smaller economy caps (i.e., altcoins) can absolutely skyrocket in worth.

correct now, all indicators are flashing green for the arrival of altcoin period. So let’s receive a closer look at how altcoin period is defined, what it means for crypto investors, and which cryptocurrencies might stand to advantage the most.

What is altcoin period?

For most of the year, cryptocurrencies tend to pursue the path of bitcoin (CRYPTO: BTC), which is by far the largest crypto, bookkeeping for a whopping 54% of the total economy cap of the crypto economy. If bitcoin trends up, then most cryptocurrencies will also pattern up. And if bitcoin trends down, then most cryptocurrencies will also pattern down.

You’d expect the economy to pursue the navigator of the biggest, most influential cryptocurrency. That’s why economy watchers tend to focus on bitcoin anytime they are predicting the upcoming of the crypto economy.

But there are periods during the year — known as “bitcoin period” and “altcoin period” — when there is a obvious transformation in this dynamic.

During bitcoin period, investors pile into bitcoin, and bitcoin significantly outperforms other cryptocurrencies. During altcoin period, the opposite happens. Investors rotate out of bitcoin, and pile into riskier, more speculative altcoins. As this money flows into altcoins, some of them can skyrocket in worth.

Has altcoin period finally arrived?

Luckily, there are a few indicators for the crypto economy that investors can track to determine if altcoin period has arrived. But just keep in mind: Unlike the winter holiday period, there is no official kickoff date for altcoin period. Sometimes the key indicators are flashing conflicting signals. Other times, there is disagreement among crypto investors about which indicator is the most significant.

So that’s what is so exciting correct now for crypto investors — every key indicator appears to be showing the same thing. Yes, altcoin period has arrived.

The one indicator that has everyone’s attention correct now is the Altcoin period Index. This is very straightforward to compute — you receive the top 100 cryptocurrencies (excluding stablecoins, which do not vary in worth), and view how many of them have outperformed bitcoin over the history 90 days. If at least 75 of these top 100 cryptocurrencies have outperformed bitcoin, then it’s altcoin period.

correct now, the Altcoin period Index created by CoinMarketCap has a worth of 82. And it has absolutely skyrocketed in worth since the U.S. presidential election in November. In the span of a month, the index soared from 33 to 87 before retreating to its current level.

The arrival of this year’s altcoin period caught many investors by shock. After all, everyone has been so fixated on bitcoin’s ascent to the $100,000 worth level that they completely ignored what was happening to smaller, lesser-known cryptocurrencies.

Which altcoins should you be buying?

As the data from CoinMarketCap shows, the act of these smaller altcoins over the history 90 days has been mind-boggling. Hedera (CRYPTO: HBAR) is up 481%. Stellar (CRYPTO: XLM) is up 415%. Sui (CRYPTO: SUI) is up 383%. Dogecoin (CRYPTO: DOGE) is up 346%. And XRP (CRYPTO: XRP) is up 329%. This is exactly what you would expect to happen during altcoin period.

By way of comparison, bitcoin is “only” up 79% during this same period period. Ethereum (CRYPTO: ETH), the second-biggest cryptocurrency, is “only” up 67%.

So you can view why the arrival of altcoin period is so exciting for crypto investors. While many investors are trying to buy as much bitcoin or ethereum as they possibly can, others are rotating their money into altcoins, where the returns could be significantly higher.

That raises an fascinating question: Which altcoins should you be buying correct now? The conventional wisdom is that you should stick to the more established, higher-economy cap names. And you should definitely avoid meme coins, or any other crypto that trades purely based on hype, hazard-taking, and momentum.

With that as a navigator, sui looks particularly fascinating correct now. Even before the arrival of altcoin period, this cryptocurrency was turning the heads of investors. It’s a highly touted ethereum competitor that’s faster, cheaper, and more efficient to use. correct now, it ranks as the 17th-largest cryptocurrency by economy cap, and is starting to attract the attention of institutional investors.

Be wary of timing the economy

Of course, it’s significant to point out that the arrival of altcoin period should not become an excuse to period the economy. recall: The economy is very excellent at head fakes, misdirection, and emotional manipulation. And, as we’ve seen this year, the Altcoin period Index can shift in worth quite dramatically within a very short period period.

The last thing that you desire to do correct now is invest in a tiny, speculative cryptocurrency that you’ve never heard of before, only to discover out that altcoin period is suddenly over. Don’t try to period the economy. Instead, only invest in an altcoin if you depend in its long-run potential.

That being said, even if you don’t depend in altcoin period, it’s definitely worth considering which cryptocurrencies might have significant upside potential as we head into 2025. Now might be the period to discover the hidden crypto gem with the ability to outperform bitcoin next year.

Dominic Basulto has positions in bitcoin, ethereum, and SUI. The Motley Fool has positions in and recommends bitcoin, ethereum, SUI, and XRP. The Motley Fool recommends Hedera Hashgraph. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content associate offering budgetary information, analysis and commentary designed to assist people receive control of their budgetary lives. Its content is produced independently of USA TODAY.

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