Sharp Increase in Alternative Cryptocurrencies Compared to Bitcoin - Is it Worth Investing Currently?
In the ever-evolving world of cryptocurrencies, a significant shift is underway. The market is showing some early signs of an altcoin season, a period where altcoins, alternative cryptocurrencies to Bitcoin, outperform the market leader.
Charles Ledoux, a Bitcoin and blockchain technology specialist, writes about this historic bullish run in altcoins. The market is exhibiting an intriguing dynamic, with Bitcoin still holding a strong position, but altcoins starting to make a mark.
Bitcoin's Dominance
Bitcoin has exhibited strong performance in 2025, rising about 10%. However, its dominance (market share relative to altcoins) remains relatively high at around 64%. This generally signals a Bitcoin-favoring market rather than an altcoin season.
One major analysis notes that Bitcoin dominance is still strong or even breaking out, which historically has been a precursor for a later rotation into altcoins once Bitcoin’s rally has run its course. Past cycles followed this pattern: Bitcoin leads first, then capital flows into altcoins providing an "altcoin season."
Altcoin Gains
However, more recent market data shows Bitcoin dominance falling below 60% for the first time in six months. Ethereum, the second-largest cryptocurrency by market cap, has surged nearly 30% in a week. This suggests growing investor focus on altcoins, especially Ethereum, which historically drives altcoin seasons.
The Altcoin Season Index, which tracks the performance of the top 50 altcoins relative to Bitcoin over a 90-day period, is a key metric used to define altcoin season. As of mid-August 2025, while there are emerging signs of increased altcoin interest, the index has not yet uniformly signaled a definitive altcoin season.
Global Interest
The rally in altcoins is surprising due to its global nature, not just limited to the US or Europe. Trading volumes in cryptocurrencies have been generally rising, with a significant increase in trading volumes from South Korea, reaching nearly $4 billion this weekend.
The "Altcoin Season" Debate
While not yet at the traditional threshold of 75% to confirm an "altcoin season," the movement is significant enough for many traders to consider it the real start. The "altcoins" tactical model on the 10x Research platform has remained in "altcoin favorable" mode for 31 consecutive days, breaking the previous record of 25 days.
Ethereum has surpassed $4200, a price level not seen since 2021. Small caps are showing even more significant spikes in the current rally, indicating a broader and stronger rally.
In conclusion, the market is showing some early signs of altcoin season in mid-2025, particularly with Ethereum’s notable rise and institutional inflows. However, Bitcoin remains dominant overall. Historical patterns and current indicator readings suggest that an altcoin season could emerge soon, but the recent altcoin outperformance alone is not conclusively the start of a broad alt season yet. Continued monitoring of Bitcoin dominance and altcoin breadth metrics like the Altcoin Season Index will clarify if and when the altcoin season fully starts.
This article was written by Charles Ledoux and updated on 10th August 2025 at 13:10.
The crypto academy expressions the interest of investors in understanding the dynamics of the cryptocurrency market, particularly the altcoin sector. In this market, finance professionals and technology enthusiasts study the performance of altcoins alongside Bitcoin, with a focus on altcoin seasons, periods where altcoins outperform Bitcoin.
Charles Ledoux, a specialist in Bitcoin and blockchain technology, emphasizes the significance of altcoin seasons, as they often follow a pattern where Bitcoin leads the market, and later capital flows into altcoins, signaling an altcoin season.
