Analytical firm Alphractal has conducted research suggesting a strong altcoin season may occur in the third quarter of 2025, fueled by increasing stablecoin liquidity and Bitcoin's growing dominance in the market.
Growth of Stablecoin Liquidity
According to Alphractal, the stablecoin market has seen significant growth in recent weeks. The total market capitalization nears $250 billion, and stablecoins now account for about 7.5% of the global cryptocurrency market. The largest share among stablecoins belongs to Tether (USDT), which represents over 66% of the total stablecoin market.
Bitcoin Dominance and Its Impact
The total market dominance of Bitcoin and stablecoins has reached 73.5%. Experts note that this rate is historically seen as a precursor to strong accumulation and rising periods for the altcoin market.
Prospects for the Altcoin Market
Alphractal's CEO, Joao Wedson, claims that contrary to negative expectations for the altcoin market, the current conditions present significant growth potential. He believes that with large liquidity available, the altcoin market could experience a surprise rally, even as investors remain cautious. The Alphractal team predicts that a parabolic rally in altcoins could start in the summer of 2025.
In light of current trends in the stablecoin market and Bitcoin dominance, Alphractal analysts suggest that a potential altcoin growth phase is expected in 2025, creating opportunities for investors and market participants.
