Bitcoin Dominance is rapidly declining, creating a potential signal for an altcoin explosion similar to 2021.
The Bitcoin dominance index has broken a three-year trend and is dropping to new lows, indicating that capital is gradually shifting towards altcoins like Ethereum, SOL, XRP, driving optimism for an upcoming altcoin season.
- Bitcoin Dominance has dropped nearly 7% in the past month, breaking a three-year trend.
- Altcoins are showing superior performance compared to Bitcoin, starting with Ethereum.
- The Altcoin Season Index has not yet officially entered the season, but an upward trend is forming.
Will the Bitcoin Dominance Decline Truly Repeat the 2021 Pattern?
According to crypto expert Crypto Rover, the Bitcoin dominance chart is forming a pattern similar to 2021, with a Falling Wedge. This pattern in 2021 led to a sharp dominance decline, triggering an explosive altcoin season.
Currently, Bitcoin Dominance has dropped from around 72% to about 61% in just a few weeks, and is forecast to potentially continue falling to 52% or lower. This suggests that capital may officially shift to altcoins, creating a premise for a new wave of growth.
"The technical pattern in 2025 is very similar to 2021, indicating the possibility of an altcoin market explosion."
Crypto Rover, Cryptocurrency Analyst, 2025
A deep analysis of cryptocurrency markets from 2021 to now shows that the trend of capital gradually withdrawing from Bitcoin to seek higher profits through altcoins is not unreasonable.
Why Are Altcoins Gradually Outperforming Bitcoin in the Current Market?
Data from glassnode in 2025 shows that Ethereum's perpetual futures trading volume has for the first time surpassed Bitcoin since the 2022 market dip. This is a clear sign of traders' shifting focus and investment towards altcoins, especially Ethereum and other altcoins like SOL, XRP.
This trend is not just a chart but also reflects market reality, as investors seek diversification opportunities and higher yields from altcoins, especially given the strong development of technological innovation, DeFi, and Non-Fungible Token.
"Ethereum's superiority in futures trading volume shows that altcoins are gradually gaining dominance in investor sentiment."
glassnode Report, 2025
What Does the Current Altcoin Season Index Say About Altcoin Season?
The Altcoin Season Index, according to Blockchain Center, has dropped from 55 on July 21 to 37 points, not yet reaching the threshold to confirm an official altcoin season. However, this decline does not completely halt the market's shifting trend.
Technical signals and capital flows are gradually shifting, indicating that an altcoin season may be forming, even though Bitcoin maintains its dominant position. If the current development continues, altcoins will soon become the new focus of the cryptocurrency market.
Frequently Asked Questions
How Does Bitcoin Dominance Decline Affect the Cryptocurrency Market?
Declining dominance usually signals capital moving to altcoins, opening growth opportunities for smaller coins with higher development potential.
Why Is Ethereum Outperforming Bitcoin in Futures Trading Volume?
Ethereum has many applications in DeFi and Non-Fungible Token, attracting derivative investors seeking more diverse profits compared to Bitcoin.
What Is the Altcoin Season Index and Is It Important?
This is an index evaluating altcoin season strength based on market capitalization and performance. It helps investors determine a reasonable time to enter altcoins.
Will the 2021 Bitcoin Dominance Pattern Definitely Repeat in 2025?
The technical pattern is similar, but the cryptocurrency market always has surprise elements, and investors need to monitor additional signals.
What Should Be Done When Altcoin Season Has Not Yet Officially Started?
Invest cautiously, focus on altcoins with strong foundations, and closely follow market developments to take advantage of opportunities when the altcoin season truly explodes.
