The cryptocurrency market appears to be transitioning into a period where alternative cryptocurrencies (altcoins) are gaining traction, a trend commonly referred to as “altcoin season.” This phase is characterized by a shift in investor focus from Bitcoin (BTC) to smaller, more volatile assets. The CoinMarketCap Altcoin Season Index, which measures the performance of altcoins relative to Bitcoin, has risen to 53 out of 100 as of the latest data, a significant improvement from the 12-point low recorded in April 2025. While this is still below the 87-point high seen in December 2024, the upward trend suggests a growing interest in non-Bitcoin assets [1].
One of the key indicators of altcoin season is the decline in Bitcoin’s dominance within the overall cryptocurrency market. Bitcoin’s share of the total market cap has decreased from 65% in May to 59% in August, according to David Duong, Coinbase Institutional’s global head of research. This decline is often viewed as a sign that investors are reallocating capital away from Bitcoin and into alternative tokens. Duong noted that the market conditions currently align with the early stages of an altcoin season, supported by macroeconomic factors such as lower inflation and the potential for Federal Reserve rate cuts [1].
Macro trends and market liquidity are also playing a role in the current altcoin rally. The improving liquidity in the market, along with increased stablecoin issuance, provides the necessary fuel for altcoins to perform well. These factors create an environment where smaller, high-growth tokens can attract attention and investment. As of the latest data, several altcoins have posted strong gains, with Solana (SOL) rising more than 16% and Hyperliquid up by over 14% in the last week [1].
One of the most notable performers is Cronos (CRO), the native token of the Crypto.com platform, which has surged by more than 120% over the past seven days. The sudden interest in CRO is largely attributed to its recent partnership with Trump Media, the company behind the social platform Truth Social. The integration of Crypto.com’s wallet infrastructure into Truth Social, along with the adoption of CRO as a utility token for rewards and subscriptions, has spurred significant demand for the token. This collaboration highlights how strategic business alliances can have a direct and measurable impact on altcoin performance [1].
The altcoin season index, as provided by platforms such as Bitget, also supports the notion of a growing altcoin-focused market. Over the past 90 days, only 40 of the top 100 cryptocurrencies by market value have underperformed Bitcoin, indicating that a majority of altcoins are currently outperforming the leading cryptocurrency. Tokens like OKB, AERO, and CRO have recorded some of the highest gains, with OKB rising more than 231%, AERO up 158%, and CRO gaining 96% [2]. Ethereum, despite being considered an altcoin, has seen a 62% increase in value over the same period, further reinforcing the broader trend of altcoin outperformance.
As the market continues to evolve, investors are increasingly considering altcoin season as an opportunity to diversify their portfolios. However, it is important to note that altcoins are generally more volatile than Bitcoin, and their performance can be influenced by a variety of factors, including technological developments, regulatory shifts, and market sentiment. With the current macroeconomic environment and improving liquidity conditions, the stage appears set for altcoins to continue their upward trajectory, at least in the short to medium term [1].
Source:
[1] Altcoin Season? These Coins Are Soaring as Bitcoin and … (https://finance.yahoo.com/news/altcoin-season-coins-soaring-bitcoin-202118188.html)
[2] Altcoin Season Index | Altcoin Dominance Chart (https://www.bitget.site/price/altcoin-season-index)
