One analyst believes that altcoins still have a lot of room for price increases, as many coins have surged significantly without taking away a considerable market share from Bitcoin.
"The dominance rate hasn't even decreased while altcoins have surged," analyst Matthew Hyland shared on platform X on Friday.
Bitcoin peaks for three consecutive days
According to data from TradingView, Bitcoin's dominance rate is currently at 63.7%, only down 1.53% over the past week — while altcoins have significantly increased in price as Bitcoin continuously reached new highs on Wednesday, Thursday, and hit an ATH of $118,856 on Friday.
Hyland implied a question: "So what would happen if Bitcoin's dominance rate dropped from 65% to 45%?", suggesting that if BTC relinquishes a larger market share to altcoins, the market could witness a real altcoin season explosion.
Analysts have long used Bitcoin's dominance rate to assess when the altcoin season begins, with a downward trend often seen as a sign that altcoins are taking additional market share from Bitcoin.
However, although Bitcoin's dominance rate has hardly changed, the recent surge in altcoins indicates that new capital is flowing into the broader market, not just concentrated on the king of crypto.
According to data from CoinMarketCap, among the top 100 cryptocurrencies, MemeCore (M) leads with a 1,216% increase in the past 7 days, followed by Mog Coin (MOG) with a 66% increase and Stellar (XLM) with a 56% increase.
Ethereum (ETH) — the second-largest cryptocurrency by market capitalization has increased by 17.55% in 7 days and 9.4% in the past 30 days. This is also a familiar indicator that traders use to determine when attention starts to shift from Bitcoin to the broader altcoin market.
Michael van de Poppe: This could be the 'easiest final altcoin season'
The ETH/BTC ratio (reflecting the relative strength of ETH compared to BTC) increased by 8.39% over the past week, indicating that capital is gradually shifting towards altcoins.
However, CoinMarketCap's altcoin season index indicates that the market is still heavily tilted towards Bitcoin, with the index at 29/100, meaning that the 'Bitcoin season' still prevails.
Nevertheless, in a post on Friday, Michael van de Poppe – founder of MN Trading Capital remarked:
"I believe we are about to witness the easiest and largest altcoin season in history."
Meanwhile, the data platform Santiment also agrees, stating that current indicators confirm that the altcoin season has begun:
"Data shows that, at least at the moment, that is happening. As long as Bitcoin maintains its position above the important psychological support level around $110,000, traders are likely to continue taking profits from BTC and reallocating to altcoins,” Santiment commented.