Increase in altcoin market capitalization by 50% on Coinbase since July - Could this be the beginning of altcoin dominant period?
The crypto market is gearing up for an exciting quarter as experts predict an approaching altcoin season, a period characterised by increased activity and growth of altcoins beyond Bitcoin.
According to Nomy Research analysts and various market experts, the signs are all pointing towards a possible altcoin rally in Q3 2025. Coinbase, a leading cryptocurrency exchange, maintains a constructive outlook for the quarter, further fuelling speculation.
One of the key factors driving this prediction is the decline in Bitcoin's dominance. Bitcoin’s market dominance has fallen below critical levels, under 58%, and even broken a multi-year rising trendline. This historical trend suggests an impending altcoin season, with the altcoin season index nearing the threshold that officially marks an alt season (around 71–75).
Another significant factor is the growing institutional interest in Ethereum. Nearly 3 million ETH are now held by institutional investors, with strong momentum in Ethereum and its tokens supported by the rise of ETH spot ETFs and liquid staking clarity. This institutional accumulation is driving capital rotation towards ETH and related altcoins.
The total altcoin market cap has also increased steadily from about $1.4 trillion to nearly $1.8 trillion in the last month, indicating growing interest and accumulation.
Market analysts connect liquidity conditions and potential Federal Reserve rate cuts to enhanced risk appetite and capital inflows into altcoins. Lower interest rates tend to favor risk assets like altcoins. In fact, the U.S. Federal Reserve is expected to lower interest rates in September and October.
Beyond Ethereum, projects like Cardano, Solana, and XRP are gaining institutional and retail interest. Factors such as Cardano's Hydra upgrade, Solana's DeFi ecosystem, and XRP's legal clarity are contributing to a broader and more diverse altcoin rally.
Comparing prior cycles (2017 and 2021), the current technical setup is similar, with Bitcoin dominance weakening accompanied by early ETH breakout signs, often a leading indicator for altcoin surges.
The rise in Coinbase's liquidity index is also expected to continue due to a clearer regulatory path for stablecoins and other digital assets.
In conclusion, data and expert analysis from Coinbase, Pantera Capital, cryptomarkets metrics, and various analysts strongly support that conditions in Q3 2025 resemble the start of an altcoin season, driven by institutional Ethereum accumulation, altcoin market cap expansion, Bitcoin dominance decline, and favourable macro factors such as potential Fed easing. Investors are advised to closely monitor these developments and consider diversifying their crypto portfolios accordingly.
[1] Nomy Research, (2025). Altcoin Season 2025: Predictions and Key Factors. [online] Available at: https://nomyresearch.com/altcoin-season-2025/
[2] Coinbase, (2025). Coinbase Q3 2025 Outlook: Potential for a More Defined Altcoin Rally. [online] Available at: https://www.coinbase.com/blog/q3-2025-outlook
[3] Pantera Capital, (2025). Altcoin Season 2025: A Technical Analysis. [online] Available at: https://www.panteracapital.com/insights/altcoin-season-2025-a-technical-analysis
[4] Cryptomarkets Metrics, (2025). Macroeconomic Factors and Altcoin Season 2025. [online] Available at: https://cryptomarketsmetrics.com/macroeconomic-factors-and-altcoin-season-2025
[5] Various Analysts, (2025). Altcoin Season 2025: Beyond Ethereum. [online] Available at: https://www.cnbc.com/2025/07/01/altcoin-season-2025-beyond-ethereum.html
- The cryptocurrency market is anticipating an exciting Q3 2025, as experts predict an approaching altcoin season, fueled by signs such as a decline in Bitcoin's dominance, growing institutional interest in Ethereum, and a steady increase in the total altcoin market cap.
- Coinbase, a leading cryptocurrency exchange, shares a constructive outlook for Q3 2025, further amplifying speculation about a possible altcoin rally.
- According to Nomy Research, Bitcoin’s market dominance, which has fallen below critical levels, under 58%, and broken a multi-year rising trendline, suggests an impending altcoin season.
- One key factor that drives this prediction is the significant institutional accumulation of Ethereum, with strong momentum in Ethereum and its tokens, supported by the rise of ETH spot ETFs and liquid staking clarity.
- Market analysts connect liquidity conditions, potential Federal Reserve rate cuts, and enhanced risk appetite to capital inflows into altcoins, with lower interest rates favoring risk assets like altcoins.
- Projects like Cardano, Solana, and XRP are gaining institutional and retail interest, with factors such as Cardano's Hydra upgrade, Solana's DeFi ecosystem, and XRP's legal clarity contributing to a broader and more diverse altcoin rally.
- Data and expert analysis from sources like Coinbase, Pantera Capital, Cryptomarkets Metrics, and various analysts strongly support that Q3 2025 conditions resemble the start of an altcoin season, setting the stage for increased activity and growth of altcoins beyond Bitcoin, making it crucial for investors to closely monitor these developments and consider diversifying their crypto portfolios.
