The dominance of Bitcoin has dropped significantly this week compared to previous weeks, raising new hopes for an upcoming altcoin season.
Here are the top 3 altcoins likely to benefit the most from the current liquidity rotation context.
ETH's dominance surged 11%, sparking hopes of an altcoin season
Ethereum (ETH) continues to maintain its position as the top altcoin, and this is increasingly evident in recent market trends. The dominance of ETH has surpassed 11% in the past 24 hours, while Bitcoin's dominance continues to decline.
The increasing dominance of ETH indicates that this coin is receiving more attention and stronger inflows. Currently, the price of ETH has risen for 4 consecutive weeks, with a 21% increase over the past 7 days.
After the most recent increase, ETH is still about 27% away from its all-time high of $4,891. Some analysts state that if ETH surpasses its historical peak, it will confirm the official start of the altcoin season.
Notably, the top altcoin by market capitalization is outperforming its main rival SOL in terms of price increase, a stark contrast to 2024 when SOL held the advantage.
The recovery momentum is supported by strong accumulation activity from institutional investors, led by BlackRock. BlackRock alone injected $499 million out of a total of $726 million in inflows into ETH on Wednesday — marking the largest single-day inflow in the history of Ethereum ETFs.
The strong appeal from institutions, combined with a solid network foundation and increasing acceptance, has fueled ETH's recent price increase.
XRP: Many factors driving investor interest
The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has held back the development of Ripple and XRP for a long time. However, in the past 12 months, XRP has made a significant recovery, thanks to several partial victories against the SEC.
This week, rumors about the impending end of the lawsuit have spread, leading to a surge in XRP's price. The conclusion of the legal battle is considered one of the biggest catalysts.
This could also pave the way for Ripple to begin a strong expansion campaign in the global financial industry. Now, the question is not 'if' but 'when', especially as Ripple has made it to the list of the world's top fintech companies.
Thanks to positive community sentiment, XRP's price has risen over 25% in the past 7 days, while its market dominance has surged, similar to ETH.
At the time of writing, XRP is trading at $3.47, an impressive increase compared to the low of under $2 back in June. The price is now less than 10% away from its ATH, indicating potential for continued highs if the positive trend persists.
Despite recent performance and being in an overbought region, XRP still retains strong upside potential thanks to the aforementioned catalysts.
HBAR: Hedera capitalizes on AI and RWA trends
AI and real-world assets (RWA) are two prominent trends of 2025, and Hedera (HBAR) is one of the leading blockchains making excellent use of both.
Recently, Hedera announced that it is building a custom plugin for n8n — an open-source workflow automation tool. This announcement shows that Hedera is moving towards enabling dApp development through AI, which may eliminate many barriers in the development process and attract more developers to build on the platform.
In the RWA sector, the on-chain RWA credit market Isle Finance has launched on the Hedera blockchain. This event coincided with Australia's release of the AUDD (digital Australian dollar) on the Hedera network. These positive developments reflect the growing pace of acceptance and adoption within the ecosystem.
On the other hand, the native coin of the network, HBAR, has significantly increased its market dominance over the past 3 weeks. This has helped the price perform impressively.
At the time of writing, HBAR is trading at $0.27, having risen 88% since the low in June, and is currently in an overbought state.
This altcoin is still trading significantly below its ATH, meaning the current price increase may still have room to extend.
Furthermore, the latest developments related to the network have painted a clear picture of healthy adoption levels, which could boost altcoin performance in the future.
