The Next DeFi Alt Season: Why a $0.035 Token Could Outperform BTC and ETH in the 2025 Cycle

The crypto market is cyclical. History repeats itself in waves of innovation, speculation, and correction. As we enter the 2025 bull run, decentralized finance (DeFi) is poised to reclaim its spotlight—not as a speculative fad, but as a foundational layer of Web3 infrastructure. Amid this backdrop, a $0.035 token could outperform Bitcoin and Ethereum by leveraging undervalued innovation and cyclical momentum.

The Cyclical Nature of DeFi: Lessons from the Past

DeFi's history is a story of explosive growth followed by painful resets. During the 2021 bull market, Bitcoin dominance plummeted to historic lows as liquidity shifted to altcoins. Tokens like AAVE, UNI, and SUSHI surged hundreds of percent, driven by yield farming and speculative fervor. According to a report by Coingecko, 89 of the top 100 cryptos outperformed Bitcoin that year, with Solana (SOL) rising over 100× Bitcoin or Altcoins? How to Build Your Digital Asset Portfolio in 2025^[2]. However, this mania collapsed in 2022, with DeFi tokens losing 80–90% of their value amid the Terra-Luna and FTX crises Top 5 Undervalued Altcoins In The September 2025 Bull Run^[3].

Bitcoin dominance rebounded in 2023–2024, peaking at 60.5% in early 2025 as institutional adoption and regulatory clarity took hold Bitcoin or Altcoins? How to Build Your Digital Asset Portfolio in 2025^[2]. Yet, this dominance is now showing cracks. Altcoins are regaining traction in niche sectors like Real-World Asset (RWA) tokenization, Web3 gaming, and AI integration. For instance, Bittensor (TAO), a decentralized AI network, has seen over 160% year-to-date returns, outpacing Bitcoin's 80% Top 5 Undervalued Altcoins In The September 2025 Bull Run^[3]. This suggests a shift: Bitcoin remains the liquidity anchor, but altcoins are carving out new value propositions.

Undervalued Innovation in 2025: The $0.035 Token Opportunity

The 2025 bull run has spotlighted several undervalued DeFi tokens with prices under $0.05. Among them, Supra (SUPRA) stands out. Priced at $0.00314, it offers bridgeless cross-chain communication and system-level automation, backed by significant institutional investments Top 5 Undervalued Altcoins In The September 2025 Bull Run^[3]. While its current valuation is low, its technical architecture—designed to solve interoperability bottlenecks—positions it to capture market share as multi-chain ecosystems mature.

Similarly, Gala (GALA) at $0.018 and Zora (ZORA) at $0.05 are gaining traction in Web3 gaming and creator monetization, respectively. Both tokens are projected to reach $0.05–$0.10 as their ecosystems scale Top 5 Undervalued Altcoins In The September 2025 Bull Run^[3]. The key takeaway? Innovation in niche use cases is driving value accrual, even at sub-$0.05 prices.

A hypothetical $0.035 token could emerge from this cohort. For example, if Supra's price rises to $0.035 amid increased adoption, its 10× upside would dwarf Bitcoin's 2025 gains. This isn't speculative hype—it's a function of DeFi's cyclical dynamics. During bull markets, tokens with strong fundamentals and novel use cases attract liquidity, creating compounding effects.

Why Altcoins Outperform in Bull Cycles

Historical data reveals a consistent pattern: altcoins outperform Bitcoin during innovation-driven bull runs. In 2021, DeFi tokens surged as yield farming unlocked new utility. In 2025, the drivers are RWA tokenization, AI integration, and cross-chain scalability. According to TheTradable, a large-cap altcoin basket has already outperformed Bitcoin in 2025, with some tokens delivering 160% returns Top 5 Undervalued Altcoins In The September 2025 Bull Run^[3].

The mechanics are simple. Bitcoin acts as a store of value and liquidity hub, while altcoins serve as “work tokens” for specific ecosystems. When demand for DeFi infrastructure rises, so do the tokens that power it. This dynamic is amplified by Bitcoin dominance cycles: as Bitcoin's share of the market wanes, capital flows into altcoins Bitcoin or Altcoins? How to Build Your Digital Asset Portfolio in 2025^[2].

Risks and Considerations

No altcoin season is without risk. DeFi tokens remain highly volatile, with deep drawdowns during corrections Top 5 Undervalued Altcoins In The September 2025 Bull Run^[3]. Regulatory scrutiny, smart contract vulnerabilities, and market sentiment shifts can erase gains overnight. For example, $JST, a potential altcoin gem, needs to maintain support above its current level to reach $0.05 .

Investors must also balance exposure. While altcoins offer outsized returns, Bitcoin's role as a macro hedge and liquidity anchor remains critical. A diversified portfolio—split between Bitcoin, high-conviction altcoins, and RWA/AI-focused tokens—can mitigate risk while capturing upside.

Conclusion: Positioning for the 2025 Alt Season

The 2025 bull run is not just a repeat of 2021—it's a new chapter in DeFi's evolution. As Bitcoin dominance stabilizes, niche innovations in cross-chain communication, AI, and creator economies are creating fertile ground for altcoin outperformance. A $0.035 token, whether Supra, Gala, or an emerging RWA protocol, could become the next 10× play.

For investors, the key is to identify tokens with defensible use cases, strong institutional backing, and alignment with macro trends. The next DeFi alt season isn't about chasing hype—it's about capitalizing on the infrastructure that will power Web3.