Bitcoin dominance is showing signs of peaking, and that usually means one thing: altcoin season. Several top Layer 1 and Layer 2 coins—including Avalanche ($AVAX), Optimism ($OP), and Arbitrum ($ARB)—have posted double-digit gains this week.
This shift comes as BTC stalls below $70K while traders rotate profits into high-beta altcoins with upcoming catalysts. Avalanche’s Subnet growth, Optimism’s OP Stack deployments, and Arbitrum’s booming DeFi ecosystem are giving each chain a unique value proposition.
Traders are watching technical breakout patterns on daily charts, especially in the ETH/BTC and AVAX/BTC pairs, which are historically reliable indicators for altcoin momentum.
If Bitcoin stays sideways and Ethereum gains strength from the ETF narrative, expect Layer 1 and Layer 2 tokens to outperform the market over the next few weeks.