Will the altcoin season come? What are the prerequisites for the altcoin season before this bull market?

I firmly believe that an altcoin season will occur in this bull market; it's just a matter of time. I still hold this view. Normally, an altcoin season requires certain conditions, which here refer to VC's ALT, and have nothing to do with Memes.

1. Sufficient liquidity

Typically, a widespread upward trend only happens during liquidity peaks. For example, 2021 saw unprecedented liquidity injection. Of course, liquidity is not necessarily provided solely from off-market, as on-market FOMO sentiment can also stimulate an increase in liquidity, like during elections.

Reference data: USDT and USDC market capitalization, amount of USDT and USDC transferred to exchanges, USDT and USDC exchange inventory.

2. Sufficient overflow funds

The overflow funds mainly refer to leading institutions or market makers and project parties injecting some of their profits gained from mainstream markets into altcoins, such as after significant rises in BTC and ETH or the U.S. stock market.

Reference data: Significant rise in ETH prices, price growth outpacing BTC.

3. The emergence of one or more hot sectors

For example, DeFi and GameFi in 2021.

Reference data: Significant increase in on-chain yields.

4. FOMO sentiment triggered by key events

FOMO sentiment leads to users blindly bullish, with a large amount of capital flooding into the market. Every day, we see people sharing their gains or dozens to hundreds of times returns, making money no matter what they buy.

Reference data: Total market capitalization of cryptocurrencies.

5. Effects of leading exchanges, with new fund volumes for IPOs continuing to rise, and new coins maintaining short-term increases.

When the altcoin season arrives, especially when hot sectors explode, the listing projects on leading exchanges will tend to focus on that sector, such as DeFi in 2021, GameFi in 2022, inscriptions in 2023, and Ton in 2024 having similar effects.

Reference data: Returns and frequency of LaunchPool and the amount of invested capital.

The above five points are my personal summary and do not necessarily represent the only scenario, but if more than three of these appear simultaneously, I would consider the arrival of the altcoin season. Currently, the probability is higher for a brewing period.