Stablecoin Surge and BTC Dominance Fall Signal Altcoin Rally
On-chain metrics point to a potential altcoin rally driven by record stablecoin liquidity and a dip in Bitcoin dominance. The total ERC-20 stablecoin supply has climbed to an all-time high of $128.7 billion, while active stablecoin addresses surpassed 250,000 for the first time. Positive net inflows of over $67 million into stablecoins on Binance further underscore growing buying power. Meanwhile, Bitcoin dominance (BTC.D) was rejected at its previous cycle resistance zone—a historical signal of capital rotating into mid- and large-cap altcoins. Traders are now watching for Ethereum to break above its current cycle bull-run resistance while BTC.D trends downward. As of today, the total altcoin market capitalization stands at $1.57 trillion, up more than 5% over the past week despite a slight 1% pullback in 24 hours. Combined, these indicators suggest that investors may soon shift more capital into altcoins, potentially igniting the next phase of the altseason.
Bullish
The surge in stablecoin supply and record active addresses indicate increased liquidity waiting on the sidelines for risk assets, while positive exchange inflows on Binance confirm elevated buying power. Historically, when BTC dominance is rejected at major resistance zones, capital rotates into altcoins, marking the onset of altseasons. Ethereum’s brief test of $4,800 and the need for a breakout above its cycle resistance further support a bullish outlook. In the short term, traders may reallocate funds into mid- and large-cap altcoins, driving price gains. Over the long term, sustained liquidity and reduced Bitcoin dominance can pave the way for broader market participation and extended altcoin rallies, resembling past cycles in 2017 and 2021.