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Ethereum, Dogecoin, XRP Lead the Charge as Altcoin Season Heats Up

Published by
Debashree Patra and Qadir AK

The crypto market is signaling an early trend shift as capital flows out of Bitcoin and into altcoins. While Bitcoin has long been the dominant player, recent movements suggest that traders are now betting on alternative cryptocurrencies for stronger returns.

Bitcoin Dominance Drops as Altcoins Outperform

Crypto analyst Kyle Chassé highlighted a notable drop in Bitcoin dominance—from 65% to 60% in just 30 days. This is one of the steepest declines in recent months, signaling a possible rotation toward altcoins.

Altcoins have capitalized on this shift:

  • Ethereum surged 26%
  • Dogecoin jumped 40%
  • XRP climbed 22%
  • Cardano rose 23%

These consistent gains are not just outperforming Bitcoin—they’re reviving hopes of a new altcoin season.

Altcoin Season Index Signals Momentum

The Altcoin Season Index has jumped from 35 to 50 over the past month. While the official altseason threshold is 75, this sharp climb reflects increasing momentum in the altcoin market.

Investors are growing more confident in altcoins’ upside potential.

Supporting this trend, the TOTAL3 market cap, which excludes both Bitcoin and Ethereum, has climbed nearly 33% month-over-month.

At the same time, USDT dominance is falling, showing that traders are moving funds out of stablecoins and back into riskier assets. With Bitcoin’s price action stalling, the spotlight is now squarely on altcoins.

Altseason Is Close, But Not Confirmed

Not everyone is convinced. Investor Mourad Farouni compared the current market setup to the post-2016 election rally, noting that while things look bullish, a full confirmation of altseason hasn’t yet occurred.

Meanwhile, analyst Michaël van de Poppe sees the recent dip as a healthy correction, not a bearish reversal. He believes that short-term volatility is expected during an early-stage altcoin bull cycle and encourages traders to stay focused on technicals rather than give in to panic.

“Selling out of fear isn’t a strategy if your long-term thesis is intact,” he says.

All indicators point to a market leaning heavily into altcoins. From price performance to volume shifts, the signals are stacking up. If momentum holds, the coming weeks could confirm the arrival of a full-blown altseason, with huge potential upside for early movers.

FAQs

What is causing Bitcoin dominance to drop?

Bitcoin dominance has dropped from 65% to 60% in the last 30 days as traders shift capital into altcoins like Ethereum, Dogecoin, XRP, and Cardano, which are currently offering higher returns and better technical setups.

Which altcoins are leading the current rally?

Ethereum (+26%), Dogecoin (+40%), XRP (+22%), and Cardano (+23%) have all posted strong gains in the past week, consistently outperforming Bitcoin.

Has altseason officially started?

Not yet. The Altcoin Season Index has risen from 35 to 50, but the official threshold for an “altseason” is 75. However, the sharp increase indicates growing momentum toward one.

What does the TOTAL3 market cap indicate?

TOTAL3, which tracks the market cap of all cryptocurrencies excluding Bitcoin and Ethereum, has jumped 33% month-over-month, signaling rising investor interest in smaller-cap altcoins.

Why is the drop in USDT dominance important?

A decline in USDT dominance shows that investors are pulling money out of stablecoins and re-entering the market with riskier bets on altcoins.

Debashree Patra and Qadir AK

Fun-loving and cheerful, a passionate blockchain and crypto writer who knows no boundary…connect if you share the same passion. With 10+ years of writing experience, I am a Crypto Journalist by chance, exploring, and learning all the dynamics of the sci-fi action-filled crypto world. Currently, focusing on cryptocurrency news and price data. With a passion for research and challenging my capabilities, I am slowly getting into the crypto arena to bring new insights every day.

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