Bitcoin News Today: Ethereum Surges as Altcoin Dominance Hits 83% With Bitcoin Losing Market Share

Cryptocurrency markets are showing early signs of a potential "Altcoin Season," with emerging data suggesting a reallocation of investor interest from Bitcoin to alternative digital assets. On-chain analytics firm CryptoQuant has identified six key indicators that suggest a gradual shift in market dynamics, including rising Ethereum prices, declining Bitcoin dominance, and increased speculative activity in altcoins.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has surged past the $3,000 level, inching closer to its all-time high of $4,800. The momentum has drawn significant attention from institutional players, such as Sharplink, which currently holds over 438,000 ETH tokens. This accumulation has been accompanied by a notable uptick in Ethereum futures trading volume, with altcoins collectively accounting for 83% of the total futures trading activity, leaving Bitcoin at just 17% dominance [1].

Bitcoin’s dominance in the market has been waning since it reached a new all-time high in mid-July. While the leading cryptocurrency has shown little directional movement, the broader altcoin market has taken over as the primary driver of growth. This shift is underscored by the growing retail investor demand for Bitcoin, as evidenced by the 30-day change in demand among small-holders. According to CryptoQuant, a rising trend in this demand is often a precursor to major market rallies [1].

The increase in altcoin activity is also reflected in the growing interest among speculative traders. The combined futures trading volume for altcoins has reached $223.6 billion, the highest level in five months. Binance, the largest crypto exchange by volume, has seen more than half of its 424 crypto futures pairs register positive returns since Bitcoin’s peak. This suggests that the market’s focus is increasingly shifting to altcoins, although Bitcoin remains a central factor in broader market sentiment [1].

While these indicators point to a developing Altcoin Season, analysts caution that the market is still in a transitional phase. Bitcoin's dominance, though down from its peak of over 50%, is still relatively high compared to historical Altcoin Seasons. In 2021, for example, Bitcoin's dominance fell to 38% as altcoins surged. The current decline to around 17% is still not at a level that confirms a full-scale Altcoin Season, but it does indicate a growing interest in alternative digital assets [2].

Ethereum’s price has continued to rise, trading at around $3,770 as of the latest data. The coin appears to have been gaining momentum for several weeks, with the broader altcoin market following suit. While Bitcoin remains the market’s anchor, the rising activity in altcoins suggests that investors are beginning to diversify their portfolios and seek higher returns in the growing crypto ecosystem [1].

As the market continues to evolve, investors are advised to closely monitor key metrics such as the Altcoin Season Index, Bitcoin dominance, and on-chain demand indicators. These tools can help traders make more informed decisions and identify potential opportunities in a rapidly changing market. The current trend suggests that altcoins are gaining traction, and if the momentum continues, it could signal the beginning of a more diversified and balanced crypto market in the near future [1].

Source:

[1] Altcoin Season Here? 6 Key Metrics Show Market Shift (https://www.newsbtc.com/altcoin/altcoin-season-here-6-key-metrics-show-market-shift/)

[2] Altcoin Season Index 2025: AI Trading Guide (https://www.tokenmetrics.com/blog/understanding-the-altcoin-season-index-your-complete-guide-to-altcoin-market-dominance?617b332e_page=2?1aa987e3_page=24&617b332e_page=30&c17ab9be_page=14)