- Altcoin Season Index jumped from 22 to 49 in a month, indicating rising altcoin momentum and neutral market dominance.
- BTC dominance fell to 60.82% as altcoins like ETH, XRP, and HBAR attracted $44B+ in market cap gains and inflows.
- Altcoin futures open interest rose by 5.15%, with funding rates for ETH and SOL surpassing BTC, showing rising risk appetite.
The Altcoin Season Index (ASI) has surged to 49, a notable shift in market moves, according to data from Coinmarketcap. This metric tracks the performance of the top 100 altcoins against Bitcoin over a 90-day period.
A value of 49 places the market in a neutral zone, not dominated by either altcoins or Bitcoin. Just one month ago, the ASI was at 22, well inside Bitcoin’s dominance range. The steep rise shows growing momentum for altcoins after several months of lagging behind.
Capital Rotation Shakes BTC Dominance
Bitcoin dominance dropped to 60.82%, its sharpest 24-hour decline since June. During the same period, ASI surged by 31.58% to hit 49. This shift was accompanied by capital inflows into major altcoins like Ethereum, XRP, and Hedera.
Ethereum’s total value locked rose by $29 billion, while XRP’s market cap jumped by $15 billion. Meanwhile, Hedera saw an 83% gain over 30 days after being selected for U.S. strategic reserve pilots. The passage of the GENIUS and CLARITY Acts has contributed to altcoin confidence by providing regulatory clarity.
Volume Spike Confirms Strong Breakout
The Altcoin Market Cap rose from approximately $1.0 trillion in early May to nearly $1.6 trillion by mid-July. A chart tracking this move shows a complete reversal of the earlier February-to-April downtrend.
Current daily gains are at $42.88 billion, with total volume reaching $314.4 billion. This sharp rise in volume supports the price movement, indicating real capital inflow rather than speculative trading.
Technical indicators also support this shift. The Relative Strength Index is at 84.49, placing it deep in overbought territory, while the MACD histogram shows strengthening bullish momentum.
Futures Data Shows Increased Risk Appetite
Perpetual futures contracts indicate growing interest in leveraged altcoin plays. Altcoin open interest rose by 5.15%, slightly ahead of Bitcoin’s 5.14%. Funding rates for Ethereum and Solana surpassed Bitcoin’s, with ETH at +0.0168% and SOL at +0.021%.
This shift suggests traders are willing to use higher leverage on altcoins despite Bitcoin’s current all-time high near $122,000. The market is showing signs of sector rotation as investors seek higher returns outside Bitcoin.
On the upside, If momentum continues, the altcoin market cap could rise toward $1.65 trillion in the near term. However, if overbought conditions trigger a pullback, support may be found near $1.35 trillion.
The altcoin market has seen a clear shift, with ASI rising rapidly and Bitcoin dominance falling. Increased volume, rising futures activity, and capital rotation reflect a strong momentum build-up.
With policy-driven catalysts fueling specific altcoins and leveraged bets gaining strength, the market appears poised at a tipping point. Whether this holds or retreats will depend on sustained inflows and regulatory clarity.
