In the past week, the dominance of Bitcoin on the cryptocurrency market has declined, which has opened new opportunities for altcoins.
Declining Bitcoin Dominance
Last week, Bitcoin dominance fell to 59.2%, marking one of its steepest declines in 2025, according to CoinGecko. This decrease of 2.98 percentage points coincided with the altcoin market cap surpassing $1.5 trillion, recovering to levels seen in January 2025.
Signs of Altcoin Season
Historically, a peak in Bitcoin dominance followed by decline has signaled the onset of altcoin growth. The recent sharp drop in Bitcoin dominance is viewed as a signal for a shift to altcoins. A further decline to 51% dominance could trigger a true altcoin season.
Dynamics of the Altcoin Market
The altcoin season index by Glassnode is currently at 51 points, indicating a balance between altcoin and Bitcoin seasons. The altcoin market is witnessing growth, driven by strong performance from meme tokens like Pudgy Penguins, which has seen significant gains over the past three months. Interest in altcoins like ETH, SOL, and BNB has also increased among institutional investors.
The decline in Bitcoin dominance creates opportunities for altcoin growth, signaling the potential beginning of a new cycle in the cryptocurrency market. Interest in altcoins is manifesting from both retail traders and institutional investors.
