BNB Recovery: Which Altcoins May Experience Growth Next? | October Update

Key Takeaways:

• In September, BNB surpassed Ethereum, breaking the $1,000 mark for the first time and achieving a new all-time high of $1,079.
• Aster (ASTR) has emerged as a formidable player in the perpetual DEX sector, supported by CZ and a Tokenomics 3.0 proposal that may lead to a supply shock.
• Ethereum’s ecosystem remains robust, with Layer 2 tokens such as Arbitrum, Merlin Chain, Mantle, and Immutable demonstrating strong performance despite market corrections.
• The liquid staking and restaking sector is gaining momentum, with EigenLayer and Ether.fi outperforming while Lido lagged, indicating selective growth.
• The altcoin season is unlikely to benefit all tokens equally. Selective winners with solid fundamentals and institutional support are more likely to emerge as leaders.

September served as a reminder that leadership among altcoins can shift rapidly. Ethereum (ETH), previously regarded as the leading force in the market, ceded its position to BNB as the token surged past $1,000 for the first time.

At the same time, newcomers like Aster (ASTR) began to challenge Hyperliquid in the rapidly expanding perp DEX sector, with support from Changpeng Zhao (CZ) intensifying the competition. However, Ethereum remains a significant part of the conversation. Its ecosystem continues to demonstrate resilience through Layer 2 (L2) networks and the liquid (re)staking sector, both of which are emerging as selective winners in this cycle.

This Cryptonews report examines the implications for the market in the coming months and identifies which altcoins may take the lead.

BNB’s Breakout Moment

For many, September marked an unforeseen change. Rather than Ethereum leading the market narrative, focus shifted to BNB and its wider ecosystem. BNB broke the $1,000 barrier for the first time, establishing a new all-time high at $1,079.

Matas Čepulis, founder and CEO of LuvKaizen, highlights that this rally is driven not only by retail enthusiasm but also by institutional support:

It’s intriguing to observe that retail traders continue to push BNB, but significant players like Franklin Templeton collaborating with Binance, along with corporate treasuries discreetly accumulating BNB, are providing substantial strength to this rally. Additionally, Binance persists with its quarterly token burns, decreasing supply and further fueling the momentum.

Simultaneously, market focus quickly transitioned to perpetual decentralized exchanges (perp DEXs). The sector was already in the spotlight following Hyperliquid’s success, but Aster’s emergence intensified the competition. The project garnered additional attention when it received backing from Changpeng Zhao, prompting some to label it a “Hyperliquid killer.”

Čepulis suggests that Aster’s tokenomics could be a pivotal factor:

The strategy introduces a fixed supply, reduces emissions, and implements fee burns, effectively transforming ASTR from an inflationary token into a deflationary one. What adds to the intrigue is the strong support Aster has, with CZ himself backing the project and its connections to the BNB ecosystem. If the proposal is approved, ASTR could emerge as one of the most significant supply shock opportunities of the season and might even reach levels comparable to Hyperliquid.

The narratives surrounding BNB and Aster also reflect a broader market transition. Čepulis perceives this shift as part of a larger change in market dynamics:

All of this is occurring amid a broader decline in Bitcoin dominance. This shift is creating opportunities for altcoins to shine, and currently, BNB appears to be the frontrunner, although Aster may be quietly preparing to enter the race.

Is It Time to Watch Layer 2 Coins Again?

Even though Ethereum may have stepped back in favor of BNB in September, its ecosystem continues to exhibit strength. This summer has been a mini-season for Ethereum. Not only did ETH reach a new all-time high, but projects within its ecosystem also thrived.

Among the most notable performers were Layer 2 networks, often referred to as the “silent workhorses” of blockchain due to their role in managing much of the activity behind the scenes. One standout was Arbitrum (ARB), which surged from $0.26 to $0.61 between late June and August, marking an increase of over 130%.

Currently, both Ethereum and segments of its ecosystem have entered a correction following the rally. Nevertheless, interest in L2s remains robust. Joaquin Mendes, COO of Taiko, regards them as one of the most promising areas in the current market:

The real opportunity lies in select altcoins with strong fundamentals, particularly Ethereum Layer 2 scaling solutions, which continue to gain traction and could benefit from renewed interest in the scaling narrative.

According to CoinGecko, in September, the leading performers among L2 tokens came from various sectors: Merlin Chain (MERL), part of the Bitcoin ecosystem; Mantle (MNT), which has strong support from the Babit exchange; and Immutable (IMX), focused on gaming and NFTs.

Their success indicates that momentum in L2 tokens is not confined to Ethereum alone. However, investors should exercise caution, as not every project in this space possesses strong fundamentals, a point Mendes himself highlighted.

According to Mendes, the recent market pullback may pave the way for healthier growth in the future:

The recent correction has eliminated overleveraged positions and established a more stable foundation for potential upward movements. Layer 2 tokens remain worthy of attention as the ecosystem evolves and transaction volumes increase across these networks.

Liquid (Re)Staking: A Sleeping Giant in Altcoins?

Growth within Ethereum’s ecosystem, however, has not been uniform. The rally in L2s highlights one area of strength, but other sectors present a more selective landscape. The liquid staking and restaking segment exemplifies this: some projects are experiencing rallies, while others remain under pressure.

This is particularly noteworthy as it constitutes one of the largest sectors within the entire Decentralized Finance (DeFi) landscape. Among the top 10 DeFi protocols, liquid staking and restaking hold a dominant position, accounting for a significant $83.6 billion in Total Value Locked (TVL) — representing 51.1% of the total value locked in these leading projects.

According to CoinGecko, Ether.fi (ETHFI) increased by more than 40% in September, while EigenCloud (EIGEN) rose by 44.5%. In contrast, market leader Lido (LDO) declined by over 6%, and Babylon (BABY) remained stagnant. This disparity illustrates how capital within the Ethereum ecosystem is shifting toward newer narratives rather than benefiting all projects equally.

David Dobrovitsky, CEO of Wowduck, observes that this sector is rapidly becoming a crucial pillar of Ethereum’s next phase:

The liquid staking / restaking sector (EigenLayer, Lido) is emerging as a new trust and yield layer on Ethereum. Both are poised to benefit from the expansion of institutional DeFi and tokenized assets.

This trend emphasizes one of the defining characteristics of the current cycle and the potential altcoin season ahead: growth is selective. Not every project will experience a rally, but those aligned with new narratives and institutional adoption could continue to lead.

Don’t Expect All Altcoins to Rally

Leadership among altcoins is no longer guaranteed. September demonstrated how swiftly momentum can shift, with BNB surpassing Ethereum and new entrants like Aster gaining traction in the perp DEX sector. Concurrently, Ethereum’s ecosystem remains resilient through Layer 2 projects and the developing liquid (re)staking sector. The forthcoming market phase may not elevate all tokens equally, but selective growth suggests that the upcoming altcoin season could be characterized by stronger fundamentals and heightened competition.

Top Crypto Events to Watch in October 2025

• October 1 — 36.82MM Token Unlock (EigenCloud)
  EigenCloud will unlock approximately 36.82 million tokens, representing around 13.77% of supply.
• October 3 — 24.52MM Token Unlock (Immutable)
  Immutable will unlock about 24.52 million tokens, accounting for approximately 1.26% of supply.
• October 5 (or earlier) — Token Buyback Program (APEX)
  APEX will initiate a token buyback program, with details pending confirmation.
• October 6 — Old Cronoscan Shutdown (Cronos)
  The previous version of Cronoscan will be discontinued.
• October 10 — 321.6M Token Unlock (Babylon)
  The Babylon project will execute a significant token unlock of around 321.6 million tokens, representing about 24.74% of its total circulating supply.
• October 16 — 92.65M Token Unlock (Arbitrum)
  Arbitrum is set to unlock approximately 92.65 million ARB tokens, constituting about 1.99% of its current circulating supply.
• October 16 — Community Call (Lido DAO)
  Lido DAO will conduct a community call featuring discussions on Ethereum ETFs and ETPs, along with a detailed examination of Lido Core’s future development roadmap.
• October 2025 — Matcha Upgrade (Celestia)
  Exact date TBA. The Matcha network upgrade will facilitate the bridging of any digital assets to and from the Celestia ecosystem, significantly enhancing interoperability beyond the native TIA token.
• October 2025 — PoS Upgrade (POL)
  Exact date TBA. The Proof-of-Stake upgrade promises substantial network enhancements with capabilities of 5000 transactions per second and 1-second transaction finality.
• October 2025 — Lido V3 Mainnet (Lido DAO)
  Exact date TBA. The launch of Lido V3 mainnet signifies a fundamental evolution from liquid staking service to a modular, transparent staking infrastructure that meets institutional requirements.

Disclaimer: Crypto is a high-risk asset class. This article is intended for informational purposes and does not constitute investment advice.

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