When Will Altcoins Finally Start Booming?

The cryptocurrency market has long been characterized by cyclical patterns, with Bitcoin (BTC) and Ethereum (ETH) dominance metrics serving as critical barometers for predicting altcoin rallies. As of late 2025, Bitcoin dominance has surged above 60%, a threshold historically associated with the buildup to an "altseason" - a period marked by explosive growth in altcoin performance. This article analyzes the interplay between Bitcoin and Ethereum dominance, stablecoin flows, and altcoin momentum to determine when the next major altcoin boom might materialize.

Bitcoin Dominance: A Historical Precursor to Altcoin Rallies

Bitcoin dominance, which measures BTC's market share relative to the total crypto market, has historically peaked in Q4 before reversing sharply. In 2017 and 2021, Bitcoin's dominance hit multi-year highs in December, followed by a rapid decline as capital flowed into altcoins. For example, in 2021, Bitcoin dominance fell from 45% to 35% within six months, coinciding with a 500% surge in Ethereum and a 10x rally in Solana (SOL), as reported by a Cryptofront News analysis.

Current data suggests a similar pattern is emerging. Bitcoin dominance now exceeds 60%, with analysts like Ash Crypto noting that this level often precedes a reversal. "Bitcoin dominance typically peaks from September to December before reversing as altcoins outperform," Ash Crypto stated, predicting dominance could drop toward 45% by 2025, according to the same Cryptofront News analysis. This shift is further supported by the decline in USDT dominance - stablecoins now account for less than 5% of the market, signaling a migration of capital from low-risk assets to higher-risk cryptos, as noted in a Yahoo Finance report.

Ethereum's Role: Stablecoin Inflows and EVM Network Activity

Ethereum's dominance as the leading smart contract platform is another key factor. Recent on-chain data reveals a surge in stablecoin inflows to Ethereum, with $1.24 billion deposited in the past seven days alone, as reported by a Coinotag analysis. This liquidity influx, driven by dip-buying on platforms like Binance, suggests capital is rotating toward EVM-compatible networks for altcoin accumulation, according to the same Coinotag analysis.

Conversely, networks like Solana and Plasma are experiencing outflows of $470 million and $501 million, respectively, according to the Coinotag analysis, indicating a temporary consolidation of capital in Ethereum's ecosystem. This trend aligns with Ethereum's role as a "launchpad" for altcoins, particularly ERC-20 tokens. For instance, Myx Finance (MYX), an ERC-20 token, has surged over 2,400% in 90 days, reflecting strong demand for Ethereum-based projects, as reported in a Coinotag analysis.

Altcoin Momentum: The Altcoin Season Index and Early Indicators

The Altcoin Season Index (ASI), a metric tracking the breadth of altcoin performance, reached 100 in 2025 - a level historically associated with strong altcoin rallies, as reported in a Coinotag analysis. This index aggregates data on trading volume, on-chain activity, and social sentiment to gauge market readiness for a shift from Bitcoin to altcoins.

Early signs of momentum are also evident in specific projects. Myx Finance's 2,400% gain over 90 days underscores the potential for high-risk, high-reward opportunities in Ethereum's ecosystem, as noted in the Coinotag analysis. Meanwhile, the broader market's recovery - evidenced by $6.58 billion in stablecoin inflows over 30 days - suggests retail and institutional investors are positioning for altcoin growth, according to the Coinotag analysis.

When Will Altcoins Boom? A Timeline Based on Historical Patterns

Given the current data, a plausible timeline for the next altcoin boom emerges:
1. Q4 2025: Bitcoin dominance peaks and begins a gradual decline toward 45%.
2. Q1 2026: Ethereum's stablecoin inflows translate into increased altcoin accumulation, with ERC-20 tokens leading the charge.
3. Q2 2026: The Altcoin Season Index surpasses 150, triggering a broad-based rally in altcoins.

This timeline mirrors 2021's trajectory, where Bitcoin's dominance peak in December 2021 preceded a 200% surge in Ethereum and a 10x rally in Solana by Q2 2022, as reported in the Cryptofront News analysis.

Conclusion: Positioning for the Altcoin Boom

The convergence of Bitcoin dominance peaks, Ethereum's stablecoin inflows, and the Altcoin Season Index's momentum creates a compelling case for an imminent altcoin rally. Investors should monitor Bitcoin's dominance trajectory and Ethereum's on-chain activity for early signals. While risks remain - including macroeconomic volatility and regulatory shifts - the historical patterns and current data suggest altcoins could begin booming as early as Q1 2026.