The recent rise in altcoins and shifts in the cryptocurrency market suggest a potential onset of an altcoin season.
Signals for Altcoin Season
Coinbase analysts have raised the possibility of an impending altcoin season, noting that current market conditions may indicate the beginning of this cycle. David Duong, Coinbase Institutional's global head of research, stated in a monthly outlook report that 'current market conditions now suggest a potential shift towards a full-scale altcoin season as we approach September.'
Declining Bitcoin Dominance
Bitcoin's market dominance has declined from over 65% in May to approximately 59% by August 2025. This drop is seen as a significant indicator of capital rotation into altcoins, as highlighted by Duong. Currently, Bitcoin’s dominance stands at 59.5%, which is the lowest level since January 2023.
Drivers of Altcoin Season
According to Duong, the current momentum is fueled by rising interest in digital assets and stablecoins, reflecting a growing institutional appetite. He noted that for an altcoin season to truly take hold, three key conditions must align: a supportive macro backdrop, declining BTC dominance, and a strong new narrative.
Overall, the analysis of current market conditions and experts' opinions suggest that an altcoin season may be on the horizon, potentially altering dynamics in the cryptocurrency space in the coming months.
