- Ethereum has surged 170% from its recent lows, now nearing its all-time high.
- As Bitcoin holds steady near $120K, its market dominance is declining, making way for altcoins to outperform.
- Altcoin futures volumes are on the rise, coupled with a strong uptick in retail activity.
The prospect of a full-blown altcoin season is fast becoming more potent. Several crypto assets surge amid shifting market dynamics following Bitcoin’s breakout to an all-time high near $120,000 earlier in July.
Ethereum, in particular, has become a bellwether for the rally, with institutional inflows, trading volume, and retail activity all pointing toward the beginning of a new altseason.
Ethereum Rallies 170% from Lows, Nearing All-Time High
Ethereum has surged 170% from its recent lows around $1,300. Currently trading at approximately $3,850, it is just 23% shy of its all-time high of $4,871.
The momentum was amplified by a $1.3 billion investment from SharpLink, which now holds 438,190 ETH, one of the largest known Ethereum accumulations this cycle. Other firms, such as The Ether Machine, disclosed new Ethereum token acquisitions today, investing $57 million. The company now holds 334,757 ETH worth over $1.2 billion.
Related: Ethereum (ETH) Price Prediction 2024-2030: Will ETH Price Hit $10,000 Soon?
Bitcoin Dominance Declines as Capital Rotates to Alts
While Bitcoin remains near $120K, its market dominance is declining, a classic signal that an altseason may be underway. Data from TradingView shows that Bitcoin’s dominance has dropped 5.62% over the past four weeks. Bitcoin is trading at $118,400 at press time.
As capital rotates out of BTC into other assets, altcoins are beginning to outperform. Similar patterns were seen during the crypto bull runs of 2017 and 2021.
The CoinMarketCap Altcoin Index now reads 41%, meaning nearly half of the top 100 most prominent cryptocurrencies are currently outperforming Bitcoin. This marks a massive improvement from June, when the index stood at just 15%.
Futures Market Confirms Rotation
The shift is also evident in the futures market. Altcoin and Ethereum futures volumes have surged to $223.6 billion, reaching a five-month high, according to CryptoQuant data. Combined, they now account for 83% of total futures volume. Meanwhile, Bitcoin represents just 17%, a dramatic reversal from earlier this year.
On Binance, only 23 of 424 futures trading pairs have posted negative returns since Bitcoin’s breakout to its all-time high. This further highlights the broad strength in altcoin markets.
Related: Crypto’s Golden Age Starts But Altseason Falters: Here’s Why
Retail Activity Picks Up Steam
Retail investors are returning to the market, another key signal that often precedes major rallies. Bitcoin transactions under $10,000, a proxy for retail behavior, have increased by 9.7% over the past 30 days. This suggests growing participation from smaller investors.
The Road Ahead: 2025 Altseason in Full Swing?
The combination of institutional Ethereum purchases, soaring altcoin volumes, declining Bitcoin dominance, and rising retail engagement sets the stage for a potentially historic altseason in 2025.
If current trends continue, CryptoQuant analysts believe this cycle could rival, or even surpass, the altcoin booms of previous years.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
