A fresh wave of capital is flooding into altcoins as Bitcoin trades near $120,000. According to a new CryptoQuant report, several key indicators are pointing to a possible “altseason,” a period when alternative cryptocurrencies outperform Bitcoin.
Bitcoin dominance, which measures BTC’s market share, has dropped sharply. The metric fell by over 6.3% in recent weeks and is now sitting at around 60.5%, the lowest level since March.
This decline often indicates a shift in market focus from Bitcoin to altcoins. Analysts say the pattern is playing out similar to 2021, when Ethereum and other tokens began to surge after Bitcoin led the initial rally.
Ethereum Rallies 56% in a Month Amid Growing Institutional Confidence
Ethereum (ETH) has posted a 56% gain in the past month alone and is now trading around $3,854. It is only 23% away from reclaiming its all-time high of $4,871. Much of the renewed interest in ETH has been fueled by institutional demand for Ethereum.
SharpLink Gaming confirmed last week it now holds 438,190 ETH, worth approximately $1.6 billion, with over 95% being staked or earning yield through liquid staking platforms. The company added over 77,000 ETH in a single week, spending $290 million at an average price of $3,756. Its ETH concentration has jumped 70% since early June.
Source: CryptoQuantMeanwhile, BitMine Immersion Technologies now leads all corporate holders with over 625,000 ETH as part of its growing $2.3 billion ETH treasury.
Together, 65 institutions now hold 2.33 million ETH, worth $8.9 billion, accounting for 1.93% of Ethereum’s total supply, according to data from Strategic ETH Reserve (SER).
Holdings have surged since April, with a noticeable spike in late June, reflecting growing institutional confidence in ETH as a treasury asset. This renewed interest coincides with Ethereum gaining strength against Bitcoin, as the ETH/BTC pair shows signs of upward momentum, an early signal often associated with the onset of altcoin-led rallies.
Supporting this trend, CryptoQuant reports that ETH and altcoin futures volume recently reached $223.6 billion, marking the highest level in five months and reinforcing the narrative of renewed bullish interest in the broader altcoin market.
Source: CryptoQuant“Altcoins are seeing heavy trading,” the firm stated. It also noted that Ethereum perpetual futures volume dominance has overtaken Bitcoin for the first time since 2022. ETH futures open interest climbed to $58 billion, with volume doubling since late June.
CryptoQuant observed that altcoins and ETH now make up 83% of total futures volume, while BTC accounts for just 17%.
At the same time, retail interest is picking up again. Transactions under $10,000 are up 9.7% over the past 30 days. Historically, this metric has surged ahead of major rallies in both Bitcoin and altcoins.
CryptoQuant explained, “This increase aligns with psychological thresholds being crossed in BTC price, drawing in smaller investors and speculators.”
The overall crypto market has added nearly $900 billion in value over the past three weeks, pushing the total market cap to $3.9 trillion.
Altcoin Season Index Nearly Doubles as Market Rotation Intensifies
Alongside Ethereum’s rally, other major altcoins are also on the rise. BNB is up 23% over 30 days, Solana has gained more than 21%, and XRP is up 44%. Meme coins are having their moment too, with BONK jumping 148% and FLOKI climbing 119%. Even lower-cap tokens are outperforming, with PENGU and SPX both posting gains of over 250%.
Out of 424 futures trading pairs on Binance, only 23 posted losses since Bitcoin broke its all-time high, showing that over 94% of the altcoin market has reacted positively.
Veteran trader Merlijn said Bitcoin dominance has entered “Phase 4″—a breakdown stage.
“This is the biggest sign of an Altseason and upcoming parabolic pump,” said Ash Crypto, another analyst.
A key technical indicator is also flashing. Bitcoin dominance has formed a bearish cross on the three-week chart and broken a three-year uptrend line.
This breakdown suggests that Bitcoin’s share of the crypto market is losing strength, which historically leads to capital rotation into altcoins.
The rise in ETH futures open interest to $58 billion, up from just $20 billion in April, is further proof of this momentum. In fact, this is more than what it was when ETH traded near $4,000 last December. Analysts see this as a strong sign of fresh capital entering the Ethereum market.
Meanwhile, Ether’s open interest dominance has risen to 40%, a level rarely seen. Glassnode data also confirms that Ethereum futures volume has overtaken Bitcoin’s—another major first since 2022.
While a full-fledged altseason has not been confirmed, many indicators suggest the market is entering a new phase. As traders eye these structural shifts, the next few weeks could set the tone for a broad altcoin rally in the second half of 2025.
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