tl;dr
Cryptocurrency exchange Coinbase and asset manager Pantera Capital predict an altcoin season beginning as early as September, driven by favorable market conditions for tokens beyond Bitcoin. Pantera’s report shows altcoins outperforming Bitcoin in the current price surge, a shift from previous Bitco...
Cryptocurrency exchange Coinbase and crypto asset manager Pantera Capital have forecasted the onset of an altcoin season as early as September. Their analysis indicates that current market conditions favor a broader rally across various tokens beyond Bitcoin.
Pantera Capital’s recent report highlights that altcoins have started to outperform Bitcoin in the latest price surge cycle, signaling a shift away from the previously Bitcoin-dominated rally. Historically, Bitcoin experienced two major rally phases: the first triggered by Bitcoin spot ETFs from late 2023 to early 2024, and the second driven by political developments from June to December 2024. During these periods, altcoins lagged behind; however, the scenario is changing now.
Monitoring altcoins' contribution to market growth is crucial, according to Pantera Capital. In past bull cycles, altcoins accounted for significant portions of growth—about 66% from 2015-2018 and 55% from 2018-2021. Currently, their contribution sits at 35%, suggesting there is room for an additional 20% growth as the cycle matures.
A key indicator of an impending crypto bull run is a decline in Bitcoin’s dominance. Coinbase notes that Bitcoin’s market share dropped from 65% in May to under 58% by August. Concurrently, the total market capitalization of altcoins has increased by over 50% since July, reaching around $1.4 trillion. This growth coincides with a rising individual investor interest in altcoins, as evidenced by Google search trends hitting highs reminiscent of January 2018.
Strengthening legislative frameworks in the U.S., such as the GENIUS and CLARITY bills, are also fueling the momentum in the altcoin space. Ethereum stands out particularly, benefiting from inflows of real-world assets and growing institutional interest, positioning it well for the anticipated altcoin season.