Bitcoin [BTC], after weeks of dominance, may finally be taking a backseat. Ethereum [ETH] has risen against BTC for four consecutive weeks, in stark contrast to Bitcoin.
Meanwhile, Bitcoin's [BTC.D] dominance is declining, while the market cap of altcoins has surged significantly since June, currently reaching $1.45 trillion. Funds began rotating into altcoins as early as July.
As the altcoin season index approaches a critical point, signs of change may now be impossible to ignore.
With the shift in dominance, ETH has surpassed BTC.
After months of consolidation, Ethereum has finally broken free, achieving a weekly increase of 26.93% relative to Bitcoin.
In fact, at the time of writing, the ETH/BTC chart has flashed green candles for four consecutive weeks, with the latest breakthrough pushing the currency pair up to 0.03153.
This significant rise aligns with the continued decline in Bitcoin's market dominance, which has fallen to 61.05%—the lowest point in over two months.
As capital flows from BTC to altcoins, Ethereum's strength may just be the beginning of a broader market narrative.
Ethereum is a precursor to the altcoin season.
The altcoin market is heating up rapidly!
From a low of $1.06 trillion in June, it has risen to about $1.5 trillion at the time of publication, with TOTAL2 (the total market cap of cryptocurrencies excluding BTC) soaring over 41%, with Ethereum firmly in the lead. Such a strong increase indicates growing confidence that the altcoin market may soon experience a new wave of prosperity.
Ethereum's outstanding performance in terms of price and dominance has acted as a catalyst, attracting capital from Bitcoin to a broader altcoin ecosystem.
The altcoin season has not officially arrived, but we are seeing some signs.
At the time of publication, Coinglass's altcoin season index stands at 51, exceeding the midpoint.
Although it has not yet broken the official threshold of 75, it has indeed seen a significant rise in recent weeks.
According to Glassnode, funds began flowing into altcoins in early July, and the short-term average has surpassed the long-term average for the first time in months.
This shift also seems to coincide with Ethereum's breakthrough.
The peak season for altcoins may not have fully arrived yet, but the market is starting to feel familiar. Moreover, investors are beginning to take notice.
