Raoul Pal, founder of Global Macro Investor, has shared his insights on a key indicator that may indicate a growth phase for altcoins.
TOTAL3 Market Indicator for Altcoins
The TOTAL3 index measures the market capitalization of all cryptocurrencies except Bitcoin and Ethereum. Currently, TOTAL3 is valued at $1.09 trillion, reflecting a 3% increase since the beginning of the week. Pal noted that the chart is approaching the resistance line of a large descending triangle that has contained price action since TOTAL3 hit $1.13 trillion in November 2021.
Historical Parallels to 2020
The optimism is partly based on market behavior during 2020 when TOTAL3 broke above a similar descending triangle structure, leading to a dramatic rise from $65 billion to over $1.1 trillion by late 2021. This move coincided with one of the most significant altcoin rallies in history, as funds rotated out of Bitcoin and Ethereum into smaller-cap assets.
Decline in Bitcoin Dominance
Another factor supporting this outlook is the decline in Bitcoin’s market share. After peaking near 66% in June, Bitcoin dominance has fallen by nearly 12% and now sits at 58.20%. This metric has logged three consecutive days of decline, reflecting growing investor interest in altcoins.
For now, the TOTAL3 chart remains the key metric to watch. A confirmed breakout above longstanding resistance could validate Pal's bullish thesis and mark the beginning of a broader altcoin surge.
