Altcoins may be entering a new phase of strength, with Ethereum leading the charge. Crypto Twitter is already buzzing, proclaiming the start of altseason as investors shift focus.
On Wednesday, Bitcoin dominance, the percentage of the total crypto market cap held by Bitcoin, dropped to 61% , signaling increased investor interest in alternative digital assets. The Altseason Index, a metric that tracks the relative performance of altcoins, instantly jumped up to the 39 mark.
The Altseason Index has shifted closer to the top. Source: Blockchain Center
But unlike previous cycles, when Bitcoin weakness often triggered sharper losses across altcoins, the market moved differently this time.
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Despite Bitcoin slipping, Ethereum (ETH) held its ground and surged over 8.6%, reaching $3,439 early Thursday morning.
The broader altcoin market also showed resilience. The TOTAL2 index, which measures total crypto market capitalization excluding Bitcoin, rose more than 6% to $1.4 trillion. At the same time, a Golden Cross is forming on the daily chart, where the 50-day moving average crosses above the 200-day moving average, often seen as a strong indicator of an upward trend.
Golden Cross forms on the Total2 chart. Source: tradingView
Wall Street Looks Beyond Bitcoin
Institutional capital appears to be rotating into Ethereum, as traditional finance (TradFi) investors look for new growth opportunities.
“TradFi is running out of growth narratives,” says Messari researcher @defi_monk. “Deep down, growth investors who raised capital to deploy into exciting innovation stories with large TAMs know that most AI names trade at absurd premiums, and other “growthy” narratives are no longer easy to find.”
With valuations for AI and software companies stretched, investors are revisiting crypto, particularly Ethereum, as a familiar, undervalued, and institutionally accessible play.
Institutional Interest Hits Record Highs
ETH spot ETFs have quietly gained momentum. According to data from SoSoValue, net inflows have remained consistently positive since March.
Yesterday, ETH spot ETFs recorded their largest single-day inflow in history, $726.4 million, surpassing the previous record of $428 million set in December 2024.
Total ETH spot ETF net inflow. Source: SoSoValue
The growing interest isn’t limited to ETFs. Publicly listed companies such as Sharplink Gaming Inc. and BitMine are now allocating ETH to their corporate treasuries, mirroring the “MicroStrategy model” that once fueled Bitcoin’s mainstream adoption.
Ethereum also remains home to the largest pool of stablecoins in the crypto ecosystem, a key factor in driving institutional trust and capital allocation.
In the meantime, ETH is still trading nearly 30% below its all-time high from 2021, while Bitcoin recently posted new record highs.
ETH Performance Signals Shift
Despite ongoing claims on Crypto Twitter that ETH is a dead asset, Ethereum has quietly outperformed over the past few months.
ETH dominance bottomed in May and is now experiencing its longest uptrend since mid-2023. And external buyers are driving a paradigm shift, challenging the “down only” perception of ETH, according to Messari’s researcher.
“What I think will happen for now is that ETH, the asset begins to decouple from Ethereum the network,” says @defi_monk.
According to him, ETH shorts are expected to be liquidated eventually. Following that, crypto-native participants may recognize their underexposure and begin reallocating, potentially leading to a broader market speculative rally for ETH that culminates in a new all-time high (ATH).
Why This Matters
Ethereum’s strong performance signals an altseason start and shift in crypto market dynamics. This renewed interest could reshape the valuations of altcoins.
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People Also Ask:
Altseason is typically triggered when Bitcoin’s dominance declines, freeing up capital to flow into altcoins. It often follows a period of strong Bitcoin performance and is fueled by growing speculation, investor rotation, and new narratives in the crypto market.
Altseason can be highly volatile. Many altcoins experience rapid price increases followed by sharp corrections. Timing entries and exits is difficult, and not all assets recover after the cycle ends.
Ethereum often sets the tone for broader altcoin performance. If ETH rallies strongly, it can signal growing confidence in the altcoin market, encouraging further capital rotation into smaller-cap assets.
