Ethereum News Today: Institutional Bet Hints at Altcoin Season’s Possible Return

Global interest in altcoin season has declined as recent market signals indicate a shift away from enthusiasm toward caution. Google search interest for “alt season” has dropped to a score of 45 this week, a sharp decline from the peak of 100 on Aug. 13, just before Bitcoin reached a new record high of $124,128. This suggests a cooling in retail investor sentiment, with traders appearing to reassess their positions as the broader crypto market experiences a correction.

The decline in interest coincides with a broader pullback in altcoin prices. Tokens like Dogecoin (DOGE) and XRP (XRP) saw significant gains earlier this month, with DOGE and XRP rising nearly 19% in the two weeks leading up to Aug. 13. However, both tokens have since lost approximately 11% over the past seven days, according to CoinMarketCap. This volatility underscores the current uncertainty in the altcoin market and the fragility of recent bullish sentiment.

Economist Alex Krueger has questioned whether the recent surge in search interest was organic or artificially inflated, raising doubts about the reliability of such metrics in gauging market sentiment. Meanwhile, crypto analyst Cristian Chifoi suggested that major exchanges like Coinbase may have contributed to the spike in searches, implying that the data may not always reflect genuine retail demand.

Despite the declining interest in altcoin season, Coinbase Institutional’s research head, David Duong, has expressed a more optimistic view. In a recent monthly outlook, he stated that current market conditions suggest a potential shift toward a full-scale altcoin season as we approach September. This forecast is based on a combination of macroeconomic factors and evolving regulatory developments, particularly in the Ethereum (ETH) space, where institutional interest is on the rise. As of August, Bitcoin’s dominance has fallen from 65% in May to approximately 58%, indicating an early stage of capital rotation into altcoins.

Further supporting the potential for a shift is the recent surge in institutional Ethereum holdings. As of Aug. 13, the top digital asset treasuries control around 2.95 million ETH, or over 2% of the total supply. Tokens with higher betas to ETH returns, such as ARB, ENA, LDO, and OP, have seen increased volatility, with LDO appreciating 58% month-to-date. This trend is partly attributed to a U.S. Securities and Exchange Commission (SEC) statement suggesting that certain liquid staking activities may not be classified as securities.

However, not all analysts are convinced that traditional indicators like the Altcoin Season Index are reliable. The index currently sits in the low 40s, far below the 75 threshold typically associated with a full-scale altcoin season. Some traders have pointed out that investors now have access to alternative ways to gain exposure to the crypto market through spot and exchange-traded funds (ETFs), reducing reliance on altcoin speculation.

As the market navigates these dynamics, the coming months will be critical in determining whether a broader altcoin rally takes hold. With regulatory clarity improving and large-cap altcoins showing signs of resilience, the stage may be set for a more mature altcoin season in the fall, driven not just by retail enthusiasm but also by institutional participation.

Source: [1] Altcoin Search Interest Plunges Amid Market Downturn (https://cointelegraph.com/news/google-search-interest-altcoin-season-plunges-crypto-market-downturn) [2] Monthly Outlook: Altcoin Season Cometh (https://www.coinbase.com/institutional/research-insights/research/monthly-outlook/monthly-outlook-aug-2025) [3] Altcoin Season in September? Coinbase and Pantera Predict Surge (https://coinpedia.org/news/altcoin-season-in-september-coinbase-and-pantera-predict-surge/) [4] What is altcoin season? When will altseason start in 2025? (https://yieldfund.com/what-is-altcoin-season-when-will-altseason-start-in-2025/)