Altcoin Rally Looms as 23% of Altcoins Outperform Bitcoin

The Altcoin Season Index has recently deviated from its usual pattern, indicating a potential shift in the cryptocurrency market. This shift is marked by a significant increase in the number of altcoins outperforming Bitcoin, with over 23% of altcoins showing stronger performance. This trend has been observed in June of every year since 2022, often signaling the beginning of a broader altcoin rally.

Ethereum has started to decouple from Bitcoin, forming a multi-year cup-and-handle pattern on the ETH/BTC chart. This pattern suggests potential breakout strength for Ethereum, which often signals the beginning of capital rotation into other altcoins. The OTHERS/BTC ratio is also bouncing from a multi-year ascending trendline, further supporting the case for a wider altcoin rally. Similar moves in 2018 and 2021 preceded previous altseasons, and currently, momentum is building as Bitcoin dominance holds below key resistance levels. ETH/BTC volume is rising, reflecting renewed institutional and retail focus on higher-beta tokens.

Several technical and on-chain metrics now support the case for a wider altcoin rally. The Altcoin Season Index, tracked by Alphpractal, shows early movement above the Bitcoin dominance zone. Many market watchers agree that liquidity is shifting into sectors like AI, modular blockchains, and gaming. Web3 funding also rose to $3.8 billion in Q1 2025, with a concentration in early-stage altcoin projects. This funding boost is expected to further fuel the growth of these altcoins, as early-stage projects often see significant gains during altseasons.

Traders are now eyeing daily gains of 20–25% as the rotation accelerates, with several altcoins showing significant bullish momentum. This shift comes as Bitcoin dominance holds steady at 60.67%, indicating that altcoins are still struggling to gain traction despite the overall market optimism. However, the current cycle matches historical patterns that have triggered strong altcoin moves in prior years. With Bitcoin consolidating and capital flowing into altcoins, traders expect daily gains of 20–25% to become common again.

According to the analysis, the Altcoin Season Index currently sits at 20, which is below the 75 threshold. However, the current cycle matches historical patterns that have triggered strong altcoin moves in prior years. With Bitcoin consolidating and capital flowing into altcoins, traders expect daily gains of 20–25% to become common again. This optimism is further supported by the recent surge in Web3 funding, which has reached $3.8 billion in Q1 2025. This funding is concentrated in early-stage altcoin projects, which are expected to see significant gains during the altseason.