Ethereum Soars as Bitcoin Dominance Drops — Altcoin Season?

Key Notes

• Joao Wedson, CEO of Alphractal, declared that altcoin season is already underway, with 37 of 57 tracked altcoins outperforming Bitcoin in the last 60 days.
• Wedson predicts further decline in Bitcoin dominance, emphasizing that most altcoins have likely bottomed out.
• Glassnode takes a contrarian approach, noting that both remain below their historical peaks, with the market still predominantly Bitcoin-driven.

Altcoins have been showing strength recently, led by Ethereum’s

ETH $1 845

24h volatility: 2.6%

Market cap: $222.72 B

Vol. 24h: $14.22 B

mega pump to $2,700 this week, while Bitcoin

BTC $96 611

24h volatility: 2.1%

Market cap: $1.92 T

Vol. 24h: $29.09 B

dominance has been declining at the same time. Market analysts believe that this could be the beginning of a full-blown altcoin season, starting next month in June.

Over the past week, Bitcoin dominance (BTC.D) in the overall crypto market dropped from 65% to 62%, breaking a five-month upward trend. In a chart shared on X by crypto analyst Crypto Auris, BTC.D is testing a crucial support at 62%, breaking under which will kick off a true altcoin season.

In contrast, the total crypto market capitalization has risen from $2.90 trillion to $3.24 trillion during the same period. This divergence indicates growing investor interest in alternative cryptocurrencies over Bitcoin.

Altcoin Season in Motion

Joao Wedson, CEO and founder of crypto analytics platform Alphractal, has declared that the altcoin season is already in motion, with Bitcoin dominance anticipated to decline significantly in the coming months.

Wedson’s proprietary Altcoin Season Index, which tracks 57 carefully selected altcoins, reveals that 37 of these have outperformed Bitcoin over the past 60 days, signaling a notable shift in market momentum toward alternative cryptocurrencies.

The analyst added that even if BTC drops in the coming weeks, most altcoins have already bottomed out, and it’s unlikely they’ll fall below recent price levels. Part of Bitcoin’s $2 trillion market cap is likely to flow into altcoins.

On-Chain Metrics Show BTC-Driven Cycle Persists

While Bitcoin dominance started heading south from the peak of 65% in May, Ethereum, on the other hand, saw its dominance jump to 9.75%, up by 3%. The overall dominance of altcoins surged to 22.35%, marking a 2% increase.

Blockchain analytics platform Glassnode reported that despite these gains, Ethereum and altcoins remain below their historical peaks of 18% and 28.5%, respectively, indicating that the current market trend remains predominantly Bitcoin-driven.

At the time of writing, the Bitcoin price is trading around $102,600 and consolidating, while altcoins are gaining stronger momentum. It will be interesting to see whether the momentum swings in favor of Bitcoin or altcoins moving forward.

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