The altcoin season could be on the verge of taking full shape as an analyst predicts further declines in Bitcoin dominance following a bearish signal.
Notably, the crypto market has picked up serious momentum in recent weeks. On July 22, the total market cap hit a record high of $3.94 trillion.
Altcoin Season Heating Up
Although the market briefly dipped to $3.7 trillion between July 23 and 25, bulls quickly stepped in, triggering a rebound that pushed the valuation back to $3.86 trillion. With this pace, the $4 trillion milestone now sits within reach.
While Bitcoin played a major part in driving this growth, altcoins have taken on a bigger role lately. Remarkably, Ethereum (ETH) led the charge, and its growing influence has led to growing talk of a full-blown altcoin season.
As altcoins continue to gain ground, the Bitcoin dominance has dropped significantly. After peaking at 66% in late June, Bitcoin’s share of the market now sits at 61%, a level last seen in early March. This shows that more traders are rotating their capital into alternative assets.
Bitcoin Dominance Could Drop Further
Notably, market veteran Michaël Van de Poppe recently discussed this change using a 3-day Bitcoin dominance chart.
He pointed to a strong bearish divergence, where Bitcoin dominance kept making higher highs from mid-May to late June, but the RSI (Relative Strength Index) printed lower highs. This contrast usually signals weakness in the trend and hints at an incoming reversal. This reversal occurred in late June, leading to the recent drop in Bitcoin dominance.
However, Van de Poppe noted that the Bitcoin dominance could record further declines, allowing altcoins to gain more dominance in the coming days. Nonetheless, he admitted that BTC price might still see brief bursts of strength, which could cause altcoins to pull back temporarily.
Despite this, he stressed that the broader trend has already turned. The drop from the 66% dominance peak confirms this change in trend. Van de Poppe’s analysis suggests that altcoins are set to take the lead in the next chapter of this market cycle.
Altcoin Market Adds $361B in July
Meanwhile, the altcoin market cap (the TOTAL2 index) continues to grow. In July alone, the market added a massive $361 billion. Ethereum contributed $160 billion to that figure, showing just how much capital flowed into the network.
XRP, the second-largest altcoin by market value, added $56 billion. Solana (SOL) brought in $18.64 billion, and BNB (BNB) jumped by $24.31 billion, as it hit new all-time highs in price.
Ethereum now aims to reclaim the $4,000 level. Notably, it came close recently by reaching $3,940 before pulling back slightly to $3,810. XRP also eyes a new all-time high above $4. It currently trades at $3.17, about 26% below that mark.
Meanwhile, trader Niels, co-founder of Ted Labs, explained in an analysis today that the altcoin market has just reclaimed an eight-year trendline and turned it into support.
After successfully retesting that line, the market now looks ready to climb higher, allowing for a full-blown altcoin season. He believes this is the perfect window to start building altcoin positions, predicting strong returns within the next four to six months.
Further, Glassnode also discussed the derivatives market around altcoins. The firm reported a sharp rebound in open interest (OI) across Ethereum, XRP, and Solana futures after the brief weekend dip.
After dipping slightly before the weekend, Futures OI across major #altcoins is recovering. The combined OI of $ETH, $SOL and $XRP has rebounded sharply to $44.2B – just shy of last week’s high ($45B). $ETH OI saw the biggest swing while $SOL and $XRP were more stable. pic.twitter.com/Skpdu7mNva
— glassnode (@glassnode) July 28, 2025
Specifically, combined OI climbed to $44.2 billion, just shy of last week’s high of $45 billion. Ethereum led the recovery with the biggest swing in OI, while Solana and XRP held steady, showing massive investor confidence.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
