Experts Explain Why Ethereum Could Lead The Next Altcoin Season

Beincrypto

Ethereum reached $4,600 this week, its highest price since December 2021. Traders are now hoping for an all-time high as retail and institutional inflows accelerate, but many variables remain uncertain.Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, described these market trends and other points of interest in an exclusive interview with BeInCrypto.Ethereum: 2025’s Hottest Altcoin?Ethereum has been doing well lately, and there’s no shortage of bullish data points. Retail whales and institutional treasury firms are making huge financial commitments, DeFi protocols are scrambling to incorporate ETH’s blockchain, and ETF inflows just smashed previous records.In 2025, could Ethereum lead the next altcoin season?Jamie Elkaleh assessed this question comprehensively, determining that ETH’s relationship to BTC is a vital clue: “Ethereum’s breakout above $4,500… points to early capital rotation from Bitcoin as dominance falls below 58%. Onchain signals, like Ethereum’s record $238 billion in July transaction volume and growing Layer-2 usage, add weight to the shift. Still, a true altcoin season hinges on sustained altcoin outperformance versus BTC, a rising total altcoin market cap, and persistent ETF-driven liquidity,” Elkaleh claimed. In other words, we need a little more data to be sure. ETH ETFs recently overtook their BTC counterparts, but this market faced a subsequent setback. These recent all-time highs in ETF inflows may also prove limited.If Ethereum is going to lead an altcoin season, it’ll need sustained growth untethered from BTC.A New Narrative For Institutional TradersStill, there are plenty of reasons to suggest that this move is possible. Nate Geraci, a Bloomberg ETF analyst, claimed that institutions are adopting a bullish narrative on ETH.For most of the Ethereum ETF’s history, Bitcoin has been an overwhelming favorite over any altcoin. The “digital gold” narrative is simple and easy for non-crypto investors to understand.Now, however, Ethereum also has a coherent sales pitch for newcomers. If Bitcoin is “digital gold,” then ETH is the “backbone of future financial markets” thanks to its DeFi presence.That narrative is pushing ETF inflows, and it’s impacting other corporate investment: “More companies are embracing Ethereum as a treasury asset—not just as a speculative play, but as a strategic financial tool that offers both yield and foundational utility. [Its] appeal lies beyond mere appreciation; by staking ETH, these firms earn passive returns while reinforcing the Ethereum network’s security, positioning ETH as a ‘digital oil’ for emerging DeFi infrastructure,” Elkaleh added. The Dangers of Corporate StakingIf this narrative holds, it seems likely that Ethereum could truly cement its position over other altcoins. Still, there are a few potential obstacles.Elkaleh noted that Vitalik Buterin personally warned of a brewing crisis with these institutional inflows. Simply put, the blockchain was not designed to handle massive clients staking their ETH tokens like mad: “Overleveraging [corporate] treasuries could destabilize the ecosystem, especially if forced liquidations trigger cascading sell‑offs. As ETH treasuries normalize, they may catalyze institutional DeFi participation, but risk management remains critical to preserve both value and decentralization,” he finished. So, all the ingredients for an Ethereum altcoin season are here, but there are no guarantees. ETH is becoming a lightning rod for corporate capital, and this investor sentiment is attracting retail traders and on-chain infrastructure growth.Ideally, these factors will create a period of intense growth. Still, traders should be wary of potential downsides.