A recent analysis by Alphractal highlights significant growth in stablecoins and their impact on the cryptocurrency market. Bitcoin dominance also plays a crucial role in shaping market conditions.
Rise of Stablecoins
According to the firm, stablecoins are rapidly expanding, with total market value nearing $250 billion. This accounts for approximately 7.5% of the entire crypto market. Tether (USDT) leads the sector with a 66% share of all stablecoins, continuing to dominate as the preferred liquidity layer for traders and institutions.
Accumulation Signal
Alphractal's analysis highlights that Bitcoin and stablecoin dominance combined has reached 73.5% of the total crypto market cap—a level historically associated with strong accumulation phases and early altcoin market rotations. "This dominance structure often signals that capital is being parked in preparation for high-beta plays in altcoins," the report notes.
Altcoin Prospects in 2025
Joao Wedson, CEO of Alphractal, believes the current market is misreading conditions. He argues that large pools of stable liquidity could rapidly shift into altcoins, igniting a surprise rally. "Contrary to the negative sentiment, we see significant upside potential. The altcoin market may catch many off guard," Wedson said.
In conclusion, with rising stablecoin reserves and Bitcoin dominance, Alphractal's team projects that altseason could kick off as early as summer 2025. This opens up opportunities for significant growth for leading altcoins once capital rotation begins.
