Altcoin Season Nears: Bitcoin Dominance Drops, ETH Adoption Rises
Altcoin season nears as Bitcoin dominance falls from 65% in May to 59% in August. Since early July, the altcoin market cap has rallied over 50% to $1.4 trillion. Improving market liquidity—deeper order books, higher spot and perpetual volumes, and reduced slippage—is making altcoin trading easier. Institutional demand for Ethereum is rising, with treasuries holding nearly 3 million ETH and firms like Bitmine and Sharplink driving adoption. High-beta tokens such as ARB, ENA, LDO, and OP have surged, led by LDO’s 58% monthly gain after favorable SEC comments on liquid staking. Meanwhile, $7.2 trillion in U.S. money market funds could flow into crypto once the Fed cuts rates in September–October. These conditions set the stage for a full-scale altcoin season, offering bullish opportunities for traders.
Bullish
This news is bullish for altcoins. The decline in Bitcoin dominance signals capital rotation into alternative tokens, supported by a 50% surge in altcoin market cap and improving liquidity metrics. Rising institutional demand for Ethereum, with treasuries holding nearly 3M ETH, underpins sustained buying pressure. High-beta tokens like ARB, ENA, LDO, and OP have already outperformed, indicating strong momentum. Favorable SEC stances on liquid staking and potential inflows from $7.2T in U.S. money market funds post-Fed rate cuts add further upside. In the short term, traders can exploit reduced slippage and deeper markets to scale positions. Over the long term, continued ETH adoption and macro liquidity support could sustain an extended altcoin season, reinforcing a bullish outlook.