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Altcoins: What's Happening Now?
1. Market Shift Underway
Bitcoin dominance—that is, Bitcoin's share of the entire crypto market—has fallen from around 65% in May to 59% by August 2025. That drop signals investors are starting to shift more capital into altcoins.
On top of that, the total altcoin market cap has jumped more than 50% since early July, reaching around $1.4 trillion.
2. Altcoin Season on the Horizon
Analysts at Coinbase say these market trends suggest we may be heading into a full-scale altcoin season, likely starting in September 2025.
That said, the Altcoin Season Index—a tool tracking whether most altcoins are outperforming Bitcoin—is still in the low 40s, well below the usual 75+ threshold needed before traders call it “altseason.”
3. Not All Altcoins Are Gaining
Despite the improving environment, most altcoins remain well below their all-time highs, often by more than 90%.
The current trend favors selective winners, rather than a broad rally. Tokens with strong narratives—like AI, RWAs (real-world assets), and layer-1 or layer-2 infrastructure—are getting most of the attention.
4. Macro Tailwinds in Place
A potential Fed rate cut and trillions sitting idle in U.S. money-market funds (over $7.2 trillion) could fuel altcoin inflows when risk appetite rises.
Ethereum is experiencing a strong rally too—driven by institutional demand and regulatory clarity. It’s nearing all-time highs, narrowing the gap with Bitcoin.
At a Glance
Metric Current Status
Bitcoin Dominance Dropped to ~59% (from 65%)
Altcoin Market Cap Growth Up over 50%, nearing $1.4 trillion
Altcoin Season Index In the low 40s (needs 75+ to signal a full alt season)
Market Sentiment Favorable—Fed cooling, idle cash, institutional flows
Altcoin Behavior Selective strength; many still deeply underwater
Ethereum Momentum Strong rally, institutional inflows, nearing all-time hig
Bottom Line
Altcoins are stirring, with fund rotation, improved macro conditions, and institution-friendly narratives all pointing toward renewed interest. But this rally is being selective—while coins tied to AI, infrastructure, or real-world assets are gaining momentum, a full-blown altcoin season isn’t confirmed yet.
Let me know if you'd like to zero in on specific altcoins—maybe Ethereum’s recent institutional flows, some promising undervalued projects, or early movers in the AI or RWA space.
