Several altcoins are in the process of rallies of up to two and three digits, as the expansion of the US money supply and the TOTAL3 index data point to the early phases of an "altseason."
The market capitalization of altcoins (excluding ETH) gained $126 billion in the second quarter, fueling speculation of an altseason. The market capitalization of altcoins, excluding Ether ETH2237 €, has added $126 billion in the second quarter, generating enthusiasm among analysts who have been anticipating an altseason. Crypto analyst Javon Marks noted a breakout that could rival the explosive bullish movement of 2017.
An increase in TOTAL3 against the US money supply indicates that altcoins are gaining value in relation to the total liquidity in the US economy, reflecting greater interest from investors and an influx of capital into altcoins.
Additionally, the anonymous crypto trader Moustache shared an analysis on X, highlighting an inverted head and shoulders pattern on the TOTAL3 chart. Comparing 2021 and 2025, the chart reflects the altcoin season of 2021, when major altcoins rose 174% compared to Bitcoin's 20% in the final stage. The pattern, an indicator of bullish reversal, suggests a rally, with the analyst forecasting "much higher levels" for altcoins.
While some analysts are in favor of the altcoin rally, others approach it with caution. Technical analyst Crypto Scient explained that the recent increase in the market capitalization of altcoins does not yet reflect a bullish trend change in a higher time frame (HTF). The analyst noted that the TOTAL2 trend remained bearish after reaching resistance at the $1.25 trillion level, and said:
"Since both BTC and TOTAL are close to the resistance zone and TOTAL2 still has room, I am inclined to believe that we are in distribution."