Ethereum News Today: September 2025: The Unfolding of Altcoin’s Strategic Takeover

Altcoin season is drawing near, with September 2025 expected to serve as a turning point in the cryptocurrency market. While the first half of 2025 saw Bitcoin dominate price trends, the focus is gradually shifting toward altcoins. A key indicator of altcoin season—when three of the top 50 altcoins outperform Bitcoin over a three-month period—is beginning to show promise. As of August 2025, the altcoin market cap has risen over 50% to $1.4 trillion, while the Altseason Index, a metric used to gauge altcoin performance, remains at 40, suggesting the market is still in its early phase [1].

A significant factor driving this transition is the shift in capital flows. Over $7 trillion is currently locked in money market funds (MMFs), which are short-term, low-risk financial products. Historically, when MMF balances drop, capital flows into riskier assets like cryptocurrencies. In April 2025, a $150 billion outflow from MMFs coincided with a surge in crypto and stock markets. Since June, MMF balances have increased by over $200 billion, yet crypto prices have continued to rise, a divergent movement that could signal more capital entering the market [1].

Ethereum has emerged as a central player in this transition. Institutional demand for ETH has grown significantly, with major entities accumulating large stakes. Bitmine Emergent Technologies alone holds 1.15 million ETH and plans to raise up to $20 billion more. Other firms, including Sharplink Gaming, collectively hold over 2.95 million ETH, exceeding 2% of the total supply. Ethereum's growing role extends beyond price appreciation; it is increasingly becoming a core component of traditional finance infrastructure through digital asset treasuries and tokenized real-world assets [1].

While Bitcoin’s dominance has declined from 65% in May to 59% in August, altcoins are gaining traction. Lido (LDO), which allows users to stake Ethereum, has seen a notable increase in price and volatility, moving at 1.5 times the volatility of ETH. This volatility reflects both higher upside potential and the risks associated with altcoins. The Securities and Exchange Commission (SEC) recently suggested that certain highly liquid staking tokens may not be classified as securities, which has further boosted interest in Ethereum-based projects [1].

Macroeconomic conditions also support the potential for an altcoin-driven market. Global M2 money supply has historically led Bitcoin prices by about 110 days, and a liquidity surge is expected in late Q3 and early Q4. Retail investors, who tend to favor altcoins over major cryptocurrencies like Bitcoin, are likely to drive this wave of capital. Internal market metrics, including stablecoin issuance and trading volumes, have also shown signs of recovery after a six-month decline, further reinforcing the possibility of a structural shift in the market [1].

As the market evolves, September is increasingly seen as the potential starting point for a full-fledged altcoin season. This shift is not merely a short-term rally but a broader realignment of capital and institutional priorities. With Bitcoin dominance declining, Ethereum-based infrastructure expanding, and MMF liquidity preparing to unlock, the conditions are favorable for a sustained altcoin-driven growth period. Investors are advised to monitor these developments closely, as they represent a strategic pivot in the cryptocurrency landscape [1].

Source:

[1] [Altcoin Season 2025] Why September Marks the Crypto ... (https://www.reddit.com/r/CryptoCurrency/comments/1mwv2rd/altcoin_season_2025_why_september_marks_the/)