Numerous technical indicators and on-chain data are showing early signs that the altcoin season (altseason) may be starting.
The total market capitalization of the cryptocurrency market has reached $3.76 trillion, with a 24-hour volume surge of $125.91 billion. This suggests that investors may be starting to rotate capital away from Bitcoin.
This is also evident as Bitcoin dominance has dropped from its recent peak to 60.7%.
Meanwhile, Ethereum has surged by 47.21% in Q3, significantly outperforming Bitcoin’s 7.14% gain. This reinforces speculation that the altcoin season has begun, with the Altcoin Season Index currently rising to 37.
Ethereum’s growing momentum, now holding a 11.9% market dominance, fuels optimism that it may continue to outperform Bitcoin throughout Q3.
Based on current market conditions, analyst SenseiD stated: “Altcoins are firmly in the second phase of their bull cycle.” He added that during this phase, Ethereum typically leads the market, and investor sentiment gradually shifts toward larger market cap and promising altcoins.
Additionally, the SmartDeFiBSC network claimed that, similar to 2021, “Bitcoin’s dominance will decline, and money will flow into ETH and altcoins.”
The Bitcoin dominance chart supports this narrative, showing a consolidation pattern reminiscent of the structure that preceded the altcoin explosion in 2021 — suggesting that a major altcoin rally could be imminent.
According to analytics firm CryptoQuant, over 45,000 altcoin deposits were made on Binance last week — the highest inflow since late 2024 — signaling increasing user activity and rising interest in altcoins.
Furthermore, the Altcoin Season Index, now at 37, has been steadily climbing since July 26. While still below the 75+ threshold that defines a full-fledged “altcoin season,” the rising trend indicates growing momentum and investor appetite for altcoins.
Recently, the Altcoin Market Cap chart confirmed a “Golden Cross” pattern — a strong technical signal that often precedes a major altcoin surge.
While we may not yet be in a full-scale altseason, the shift in dominance and capital inflows into altcoins are clear signs that it’s approaching.
Right now could be a strategic moment for investors to determine their positioning ahead of the most explosive phase of this market cycle.
