Top 5 Altcoins to Buy This Week (March 3): Don't Miss Out!

Key Takeaways:

• The CoinMarketCap Altcoin Season Index indicates 16/100, which indicates it's still Bitcoin Season.
• The top altcoins to buy this week (w/c March 03) include: ADA, AVAX, LTC, SOL, and TAO.

The crypto market is highly susceptible to global events, with Bitcoin prices reacting within seconds. Recently, Bitcoin and the entire crypto market responded negatively to the U.S. tariff implications for China, Mexico, and Canada. The tariffs imposed by President Trump are set to take effect on March 4, applying an additional 10% tariff on China and 25% on Canada and Mexico.

The overall crypto market cap dropped over 18%, reaching $2.56 trillion, while Bitcoin briefly touched the $78,000 mark for the first time since November 11, 2024. However, the market has largely rebounded, with Bitcoin currently trading above $91,000.

Bitcoin's sharp bearish movement triggered massive FUD in the ETF market, causing the Bitcoin Spot ETF to suffer significant losses. February became the worst-performing month, with a staggering $3.6 billion outflow. On February 25, the market witnessed a record-breaking $1.1 billion single-day withdrawal, the largest since the ETFs were introduced.

With the market rapidly evolving, identifying strong altcoins is more important than ever. In this guide, we'll explore five of the most promising altcoins to watch right now, selected based on their use cases, growing adoption, and recent price movements from the past week.

When Will Alt Season Start?

Bitcoin is still maintaining above 60% market dominance, allowing less inflow to the altcoins. The substantial liquidity inflow into Bitcoin has contributed to slower gains for altcoins. Once BTC dominance declines to less than 50%, with more capital flowing into altcoins as a result, the alt season will officially kick in.

Alt index chart

BTC's dominance is currently at its peak. The CoinMarketCap Altcoin (CMC) Index Chart shows the rising altcoin market cap while the declining altcoin season index is due to decreased interest in alternative crypto assets. The CMC Altcoin Season Index has improved by several points this week to 16/100, moving farther away from Altcoin Season.

The Altcoin Season Index chart can help traders assess the current phase of the market and potentially decide how to allocate their portfolios.

Top Altcoins by Market Cap

The top altcoins by market cap, excluding stablecoins, are Ethereum, XRP, Solana, BNB, and Cardano. The table below shows the token’s current price, year-to-date growth, seven-day percentage change, and total market cap.

ADA replaced Dogecoin and entered the top five altcoins by market cap. Ethereum is widely recognized for its smart contracts and EVM, which power the DeFi ecosystem. XRP provides infrastructure for cross-border payments.

Similarly, the Solana ecosystem is known for its high developer activity, while BNB is renowned for having one of the most comprehensive ecosystems. Year-to-date, XRP has increased by 9.72%, whereas Solana has declined by over 15% during the same period.

How to Pick an Altcoin to Invest?

Altcoins, or alternative coins, refer to all cryptocurrency tokens other than Bitcoin. While thousands of altcoins exist, only a select few offer real utility and the potential for significant returns. To help investors navigate the vast altcoin landscape, here are key benchmarks to consider when choosing an altcoin for investment:

• Use Case: Choose altcoins that solve real-world problems.
• Team and Community: Evaluate the experience of the development team and the size and activity level of the community.
• Tokenomics: Assess token supply, emission rates, and whether the coin is inflationary or deflationary.
• Market Metrics: Look at market capitalization, liquidity, trading volume, and exchange listings.
• Historical Performance: Study past price movements and volatility.
• Fundamental and Technical Analysis: Conduct thorough research on the project’s fundamentals and do technical chart analysis.

Top 5 Best Altcoins to Buy Now

Based on project fundamentals and technical indicators, our team has shortlisted top altcoins investors can capitalize on during the ongoing bull run. Below are our top picks for the best altcoins worth considering right now.

1. Cardano (ADA)

Launched in 2017, Cardano (ADA) has remained on the watchlist of many potential investors, with institutional involvement growing steadily, with a promising ADA price prediction outlook for 2025 and beyond.

The project was founded by one of Ethereum’s co-founders and has secured a spot among the top five cryptocurrencies, replacing Dogecoin. ADA is as strong technically as it is fundamentally, making it a solid choice for long-term investors.

With a 90% gain this week, ADA is among the top-performing altcoins. The price is currently undergoing a correction due to sell-off pressure at its peak and is seeking support. A major support level exists at $0.90, near the midpoint of the demand zone. If a bullish reversal occurs from this area, ADA could surge another 30% this week, targeting a local high of $1.19.

2. Avalanche (AVAX)

Avalanche (AVAX) is a decentralized blockchain platform built for high scalability, low transaction fees, and rapid finality. It utilizes the Avalanche Consensus, enabling it to process thousands of transactions per second (TPS) without compromising security or decentralization.

As an Ethereum Virtual Machine (EVM)-compatible network, Avalanche is a major competitor to Ethereum. Its native token, AVAX, is used for transaction fees, staking, and network security.

Currently, AVAX is trading below the bearish trendline resistance. Since December 2024, it has been in a downtrend after reaching a high of $55, likely due to profit-taking. However, as Bitcoin consolidates, AVAX is expected to bounce back and break above local resistance. If a bullish reversal occurs, the price could target $28.80 this week.

3. Litecoin (LTC)

Litecoin (LTC) was created in 2011 as a hard fork of Bitcoin, designed to be a more decentralized and efficient alternative. Initially introduced to counter Bitcoin’s mining centralization, Litecoin eventually faced similar challenges, with large mining firms dominating its network. Despite this, it remains one of the most recognized minable cryptocurrencies and a widely used peer-to-peer payment system.

Currently, LTC is facing rejection at local resistance levels, forming Order Blocks. The price is near its local low and could rebound to fill the Order Block’s required volume. If a breakout occurs, Litecoin could see further upside potential, breaking above the local resistance of $132.

4. Solana (SOL)

Solana (SOL) has gained significant attention due to its meme coin boom, making it an appealing choice for both retail and institutional investors. While known for its volatility, Solana has the potential to deliver massive short-term gains. The network benefits from strong developer interest, and the rise of meme coins built on its blockchain has fueled increased network activity.

Thanks to tools like Pump.fun, anyone can create a meme coin on the Solana network without any coding knowledge. While many of these coins are short-lived and prone to pump-and-dump schemes, they still contribute to substantial trading volume on the network.

Currently, Solana-based meme coins boast a combined market cap of $9.8 billion. Some of the most well-known include TRUMP, WIF, BONK, and PENGU. The market is recovering from a recent massive dump.

Solana's price is now trading above the descending trendline but undergoing a minor correction. If it holds above trendline support and attempts to break the $180 resistance, Solana is expected to rally toward $200. A strong recovery is anticipated due to a liquidity grab and fresh capital inflows.

5. Bittensor (TAO)

Bittensor (TAO) is an open-source protocol that powers a decentralized, community-driven blockchain network for machine learning model training. Its native token, TAO, is essential for rewarding contributors, providing external access, and enabling users to extract valuable data.

Bittensor aims to create a decentralized AI-driven marketplace where data becomes a key commodity. For TAO’s price to rise, increased demand and strategic partnerships will be critical. As the network evolves, its potential to disrupt both the AI and blockchain sectors continues to grow.

Currently, TAO exhibits high volatility at 47% and is moving with a bearish sentiment on the hourly chart. However, the 2-hour, 4-hour, and weekly charts indicate a bullish market outlook. The price is resting at the $318 support level, with the potential to surge to $360 during the next big wave.

Low-Cap SOL Altcoins to Invest in 2025

Low-cap crypto gems are known for their low liquidity, making them highly volatile. Even small investments, like a few thousand dollars, can significantly impact their price. This volatility also means that large holders, often referred to as "whales," have the power to easily dump their tokens, causing the price to crash.

While low-cap altcoins present the opportunity for massive, quick gains, they come with extremely high risks. Without a deep understanding of the project’s fundamentals or tools like wallet tracking, investors risk losing their entire investment. It's important to note that the massive gains in these projects are not solely dependent on the broader cryptocurrency bull run.

Solana meme coins represent another promising but risky opportunity with significant growth potential. If you’re looking to invest in projects that haven't yet caught the attention of whales, consider exploring pump-fun Sol coins. Below is a list of low-cap token pools paired with SOL:

Investing in Altcoins vs. Bitcoin

The ongoing cryptocurrency market crash is expected to be short-term, with the bull run still showing signs of favoring Bitcoin. However, 2025 is projected to be a breakout year for altcoins, and we are only in March.

Whether you should invest in Bitcoin or altcoins depends on several factors. Altcoins generally offer higher growth potential and diversification benefits compared to Bitcoin. On the other hand, Bitcoin’s credibility, adoption, and limited supply make it an appealing choice for institutional investors.

If you're someone who thrives on high volatility and is open to risk exposure, altcoins may be the better choice for you. However, if you're looking for high liquidity and more balanced gains, Bitcoin could be the safer bet. Ultimately, it's wise to have a diversified investment portfolio that includes both Bitcoin and altcoins, as this approach can help maximize growth potential while minimizing risks.

Conclusion

Choosing the right altcoins can be challenging due to the increased inherent risks. However, with careful evaluation of project fundamentals, technical indicators, and growing adoption across different sectors, investors can take advantage of their potential for significant gains.

One key area where altcoins are seeing increased value is as payment methods on crypto betting sites like Rivalry, where altcoins like DOGE, ETH, and SOL are widely accepted. As more betting platforms accept altcoins, these tokens are becoming more recognized and valued for their utility in real-world applications. This shift enhances their demand and could drive further price appreciation.

While the altcoin season is still in its early stages, now could be the perfect time to invest in promising altcoins before they take off. However, as always, it’s crucial for investors to conduct their own due diligence, assess their risk tolerance, and stay informed about market trends before making any investment decisions.