Bitcoin Stablecoin Dominance Hits 73.5% Altcoin Rally Possible

Generated by AI AgentCoin World
Wednesday, Jun 25, 2025 4:28 am ET1min read
BTC
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The combined dominance of

Bitcoin
and stablecoins in the cryptocurrency market has reached 73.5%, according to a recent report from a cryptocurrency analysis firm. This significant milestone suggests that the market may be on the cusp of an altcoin rally, particularly in the third quarter of 2025. The report highlights that stablecoins are rapidly expanding, with their total market value nearing $250 billion, which accounts for approximately 7.5% of the entire crypto market. Tether (USDT) leads the stablecoin sector with a 66% share, continuing to dominate as the preferred liquidity layer for traders and institutions.

The analysis from the firm indicates that the combined dominance of Bitcoin and stablecoins at 73.5% of the total crypto market cap is 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 CEO of the firm, Joao Wedson, believes that the current market is misreading conditions. While many investors remain cautious or sidelined, Wedson argues that large pools of stable liquidity could rapidly shift into altcoins, igniting a surprise rally. He further emphasized that altcoins are currently underheld relative to historic norms, creating a setup for a parabolic move if momentum shifts even modestly.

The firm's team projects that altseason could kick off as early as summer 2025, with strong upside for leading altcoins once capital rotation begins. Key metrics aligning, such as rising stablecoin reserves, high Bitcoin dominance, and investor hesitation, support this projection. The report suggests that the market may be underestimating the potential for an altcoin rally, with significant upside potential for those who position themselves accordingly. The analysis underscores the importance of monitoring market dominance metrics and stablecoin liquidity as indicators of potential altcoin market movements.