Have you ever thought that while everyone is still discussing which integer level Bitcoin will break, those long-silent altcoins have quietly brewed up a storm? Will you continue to watch BTC's fluctuating range, or will you decisively shift your perspective and position yourself in advance for the upcoming 'altcoin season' that may shock the market?
In May 2025, a series of core market data seems to indicate that the crypto market is standing at an important critical point, and this time the main character may not be Bitcoin, but those previously overlooked altcoins.
One, funds are changing direction, and Bitcoin's dominance is significantly declining.
According to market analysis, since November 2024, Bitcoin's dominance (BTC.D) has experienced the largest consecutive decline—down 4% over six days, which is a signal that cannot be ignored. In the past several rounds of 'altcoin season,' the decline in Bitcoin's dominance has almost always been the prologue to the big show.
The technical indicators are also giving signals: a strong bearish divergence has appeared on the BTC.D weekly chart, and trading volume is gradually shrinking. Such trends often indicate a lackluster rise for Bitcoin, with hot money flowing towards other crypto assets.
Michael Van Poppe, founder of MN Capital, bluntly stated: 'The bear market for altcoins has ended.'
Two, the dominance of USDT is approaching a two-year low, signaling a speed-up in capital rotation.
Even more alarming is that the market share of stablecoins has also begun to plummet sharply. USDT's dominance has fallen to a new low since February 2024, at only 4.59%, approaching the levels seen during the 2022 bottom.
This is a very subtle yet crucial signal—it means that off-exchange funds are accelerating their inflow into the crypto market and are no longer primarily focused on Bitcoin but are instead massively entering more volatile and potentially lucrative assets—namely altcoins and meme coins.
Observe USDT, it is in a typical descending triangle pattern; if it fails to hold above 4%, it may refresh the lowest level since 2021, which corresponds to the last time the altcoin market surged.
Three, the market capitalization of altcoins has strongly broken through, and the bullish structure of TOTAL2 has taken shape.
In addition to the structural changes in fund flows, the technical chart has also released bullish signals.
The TOTAL2 chart (total market cap of all cryptocurrencies except Bitcoin) has successfully broken through the downward trend line since January 2025 and has formed a high-low structure (BOS) on the daily level. If it can further break through the $1.25 trillion mark, it will constitute a standard bullish structure.
What does this represent? It means that capital is beginning to form a 'higher highs and higher lows' pattern in the altcoin space, which is one of the clearest bullish signals in traditional trend analysis.
More importantly, many mainstream altcoins (such as ETH, XRP, SOL) have risen by 44.3%, 20.6%, and 22% respectively within just seven days, far exceeding BTC's 10% increase. This pattern of 'outperformance of altcoins' is a typical characteristic of Altseason.
Four, is the market sentiment warming up, and is the recovery just beginning?
Crypto trader ZERO IKA also pointed out that many altcoins have formed 'structural breakthroughs' on high time frames, and currently, there is still a gap of 70% to 90% from their historical highs. In other words, this recovery is still in the 'early stage.'
This also means that the increase you are seeing now may only be a warm-up; the real big market has yet to arrive.
Five, how to gain the upper hand in this wave of altcoin frenzy?
In the face of this shift of funds and trend reversal, holding a few mainstream altcoins is certainly good, but more importantly, can you quickly identify structural opportunities, discern funding trends, and adjust your positions in a timely manner?
At this time, an AI-driven crypto market research assistant like Mlion.ai is particularly crucial.
You can quickly understand the short to medium-term trends of mainstream and potential altcoins through Mlion.ai's price prediction module, gain insights into the emotional fluctuations behind the funds through the breaking news deep analysis feature, and combine it with on-chain address analysis to determine whether certain funds are concentrating on building positions.
Not to mention, if you are still interested in potential airdrops, the NFT market, or AI-generated research reports, Mlion.ai almost covers all the strategy toolkits you can think of.
At this moment, the market is not lacking in volatility, but rather in a pair of eyes that can see through structural changes. And AI is your best 'second brain.'
Summary:
Bitcoin's dominance continues to decline, with funds clearly flowing towards altcoins;
The USDT proportion has dropped to a two-year low, further accelerating capital rotation;
The market capitalization of altcoins is forming a bullish structure, with TOTAL2 breaking through a key resistance level;
Mainstream coins like ETH, XRP, and SOL have far outperformed BTC;
Multiple technical and emotional indicators show that the 'altcoin season' has entered its preliminary stage.
The winds of the market are changing, and the cost of standing at the wrong wind outlet could be several times the opportunity cost.
Now, it’s time to let Mlion.ai help you grasp the rhythm and get on board before the wind starts blowing.
Disclaimer: The above content is for informational sharing only and does not constitute any investment advice. The cryptocurrency market is highly volatile, please make rational judgments based on your own risk tolerance.
