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Is Altcoin Season Finally Here? Bitcoin Dominance Weakens as Altcoins Gain Momentum
As we approach the midpoint of 2025, there is growing speculation about whether altcoin season has finally arrived. This question seems more pressing than ever given recent market developments. Recent data suggests that cryptocurrency markets are shifting in favor of alternative currencies.
Bitcoin’s dominance over other cryptocurrencies has been weakening throughout the past few weeks. As Bitcoin consolidates near $112,000, it appears that investors and traders alike are becoming increasingly interested in layer-1 tokens like SUI, SEI, and Ethereum, all of which have shown impressive gains in recent times.
It is essential to note that altcoin performance has been building momentum since the beginning of this year. The trend can be seen across the broader altcoin market, with projects like PUMP Token (PUMP) exploding 30% as retail investors pile in. Furthermore, Crypto Trading Giant Talos Snaps Up Coin Metrics in $100M+ Power Play suggests that institutional capital is also flowing into these alternative currencies.
One of the most critical indicators of a potential shift in investor behavior has been the decline in meme coin dominance since the start of 2025. This change could be indicative of investors seeking higher returns from projects with real utility, as opposed to purely speculative investments.
CryptoQuant’s MVRV-based altcoin season indicator has registered positive readings for consecutive weeks, which is a rare occurrence. This phenomenon has not been seen since June 2024 and suggests that the momentum behind altcoins could be sustained in the coming months.
Bitcoin price action will play a crucial role in determining the sustainability of this new trend. If Bitcoin continues to consolidate above $112,000, it may fuel further gains for altcoins as investors seek higher returns elsewhere. However, if Bitcoin experiences a sharp decline below key support levels, we could see altcoin performance suffer in tandem.
Overall, the data suggests that altcoin season may have arrived. The technical indicators and charts are painting a picture of sustained momentum across various altcoins. It is essential for investors to closely monitor the market developments as this trend evolves and provides guidance on the best coins to invest in.
Source: coincentral.com
