#AltSeasonComing #BinanceTurns8
Coinbase Institutional’s August 14 monthly outlook projects that an altcoin-led market phase could emerge in September, marking a potential rotation in market leadership from Bitcoin (BTC) to alternative cryptocurrencies.
Authored by David Duong, Coinbase’s Global Head of Research, the report identifies three primary catalysts:
1. Declining Bitcoin market dominance – BTC’s share of total crypto market capitalization has begun to retreat from earlier peaks. Historical trends suggest that such declines often precede capital rotation into large-cap altcoins (e.g., ETH, SOL), and subsequently into mid- and small-cap assets.
2. Improved liquidity conditions – Bid-ask spreads have tightened and order book depth has increased across major exchanges, reducing transaction costs and enabling larger position entries and exits in altcoins without excessive slippage.
3. Shifting investor risk appetite – Stabilizing macro conditions and contained volatility may encourage allocation toward higher-beta crypto assets, particularly if BTC enters a consolidation phase rather than breaking to new highs.
Coinbase frames this as a cyclical transition, where capital gradually moves down the risk curve as confidence builds. While not specifying individual outperformers, the firm notes that in prior cycles, blue-chip altcoins tended to lead the move before smaller-cap tokens followed.
Year-to-date, BTC has risen 27.2%, underperforming ETH (+37.9%) and XRP (+49%), while SOL (+1.67%), ADA (+8.96%), and DOGE (-27.5%) have lagged. The report emphasizes that although September may initiate the rotation, the scale and longevity of the trend will be contingent on both market structure and macroeconomic developments.
