The cryptocurrency market shows early signs of an altseason, with Bitcoin dominance dropping to around 58-60%, signaling capital rotation into altcoins like $ETH , $SOL , and $XRP , which are posting double-digit gains.
The Altcoin Season Index hovers in the 40-50 range, indicating momentum but not yet confirming a full altseason, which requires a score above 75.
Experts suggest the altseason began in April, peaking now, driven by Ethereum's rebound and institutional interest in fundamentally strong projects.
Social media buzz on growing retail enthusiasm, particularly for AI, DeFi, and Layer-2 narratives. However, analysts warn of volatility, with speculative tokens at risk of fading if lacking real utility.
Macro factors like potential Federal Reserve rate cuts could further fuel risk on behavior, but investors are advised to focus on projects with strong fundamentals.
Patience and selective positioning remain key to navigating this transitional phase.