Coinbase says a ‘full-scale altcoin season’ may be just ahead

Altcoins person seen important maturation recently, and existent crypto marketplace conditions suggest determination could soon beryllium a displacement towards cryptocurrencies extracurricular of Bitcoin, according to Coinbase.

“We deliberation existent marketplace conditions present suggest a imaginable displacement towards a full-scale altcoin play arsenic we attack September,” Coinbase Institutional’s planetary caput of research, David Duong, wrote successful a monthly outlook study connected Thursday.

The Coinbase expert joins a increasing chorus of traders and marketplace observers tipping for an imminent altcoin season.

The steadfast defines altcoin season arsenic erstwhile astatine slightest 75% of the apical 50 altcoins by marketplace capitalization outperform Bitcoin (BTC) implicit the preceding 90 days.

Duong added that determination was “significant retail superior sitting connected the sidelines” successful wealth marketplace funds, and Federal Reserve easing could “unlock greater retail information successful the mean term.”

July’s US Consumer Price Index (CPI) this week showed ostentation holding astatine 2.7% year-over-year, which has seen the odds of a Fed September complaint chopped summation to 92% connected futures markets. 

A little involvement complaint situation perchance draws caller superior into the marketplace and could beryllium a catalyst for high-risk assets specified arsenic altcoins. 

Altcoin unfastened involvement dominance ratio has spiked. Source: Coinbase 

Bitcoin dominance is declining 

Another origin influencing the accomplishment of altseason is the diminution successful Bitcoin dominance oregon full crypto marketplace capitalization share. 

Bitcoin’s marketplace dominance has declined astir 10% from implicit 65% successful May 2025 to astir 59% by August 2025, “signaling the aboriginal stages of superior rotation into altcoins,” Duong wrote.

Related: Altseason connected skyline amid liquidity surge, regulatory clarity: Sygnum

Bitcoin dominance is presently 59.5%, astir its lowest level since precocious January, according to TradingView. 

“Bitcoin dominance has conscionable formed its archetypal monthly bearish transverse since January 2021,” observed crypto time trader Ito Shimotsuma connected Thursday. “Back then, altcoins went up lone for 4 months erstwhile it happened,” helium said earlier adding, “Something akin this clip volition origin an up-only rally till December 2025.”

Bitcoin dominance has fallen to a six and a fractional period low. Source: TradingView

Altcoin play indexes are moving higher 

Altcoin play indexes person besides been climbing higher, but inactive stay good beneath the 75 threshold by which they historically specify altseasons, adjacent though the altcoin marketplace headdress has climbed implicit 50% since aboriginal July, Duong observed. 

CoinMarketCapʼs Altcoin Season Index presently sits astatine 44, having climbed from beneath 25 successful July. Blockchain Center’s Altcoin Season Index is simply a neutral 53, portion CryptoRank’s Altseason Index is simply a level 50. 

Institutional involvement successful ETH is driving altcoin season

Duong said that existent momentum is being fueled by digital plus treasuries and stablecoin narratives, with the divergence successful altseason indexes and full altcoin marketplace headdress “reflecting rising organization involvement successful Ethereum,” earlier concluding:  

“With the altcoin marketplace headdress climbing and the Altcoin Season Index showing aboriginal affirmative signals, we judge conditions are mounting up for a imaginable rotation into a much mature altcoin play arsenic we caput into September.” 

“Three cardinal conditions request to align for an altcoin play to instrumentality hold: a supportive macro backdrop, declining BTC dominance, and a beardown caller narrative,”  Joanna Liang, founding spouse of Singapore-based task superior steadfast Jsquare, told Cointelegraph.

“Past cycles were driven by wide catalysts: ICOs successful 2017–2018, Layer-1s successful 2018–2019, and DeFi/NFTs successful 2021–2022,” she said earlier adding:

“In this cycle, the marketplace is inactive waiting for a compelling primary-market awesome that tin gully important caller superior and genuinely ignite an altseason.”

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