According to Coinbase, Altcoins has experienced significant growth and the current conditions of the cryptographic market suggest that there could soon be a change to cryptocurrencies outside the bitcoin.
“We believe that the current market conditions now suggest a potential change towards a large -scale Altcoin season as September approaches,” the Chief of Coinbase Institutional, in a monthly Outlook report on Thursday.
Coinbase analyst joins a growing choir of traders and market observers for an imminent Altcoin season.
The company defines the Altcoin season as when at least 75% of the first 50 altcoins by market capitalization overlapping Bitcoin (BTC) during the previous 90 days.
Duong added that there was “significant retail capital seated on the sidelines” in the funds of the money market, and the relaxation of the federal reserve could “unlock greater retail participation in the medium term”.
The US Consumer Consumer Price (IPC) this week has shown an inflation of 2.7% in annual sliding, which saw the chances of an increase in the drop in September Fed rate at 92% in the term markets.
A lower interest rate environment potentially leads to new capital on the market and could be a catalyst for high -risk assets such as altcoins.
Bitcoin domination is decreasing
Another factor influencing the arrival of Altes-Season is the decline in Bitcoin dominance or on the share of market capitalization of total cryptography.
The domination of the Bitcoin market decreased by around 10%, from more than 65% in May 2025 to approximately 59% by August 2025, “signaling the first stages of the capital rotation in altcoins”, wrote Duong.
In relation: Alts-season on the horizon in the middle of the liquidity overvoltage, regulatory clarity: Sygnim
Bitcoin Dominance is currently 59.5%, around its lowest level since the end of January, according to TradingView.
“The domination of Bitcoin has just formed its first monthly lower cross since January 2021,” observed the trader of the crypto Ito Shimotsuma on Thursday. “At the time, Altcoins increased only for four months when it happened,” he said before adding, “something similar this time will only cause a rally until December 2025.”
Altcoin season clues increase
The clues of the Altcoin season have also climbed higher, but still remain well below the threshold of 75 by which they historically define the Altsasons, even if the Altcoin market capitalization has climbed more than 50% since early July, observed Duong.
The CoinmarketCap Altcoin season index is currently 44 years old, having climbed under 25 in July. The Blockchain Center Altcoin season index is a 53 neutral, while the Alts-Season index of Cryptorank is a level 50.
The institutional interest for the ETH leads the Altcoin season
Duong said that the current momentum is fueled by digital assets of treasury and stablecoin stories, with divergence in alte-sex indices and total market capitalization “reflecting growing institutional interest for Ethereum”, before concluding:
“With the escalation of Altcoin market capitalization and the Altcoin season index showing early positive signals, we believe that the conditions are being set up for a potential rotation in a more mature Altcoin season while we are heading in September.”
“Three key conditions must align with a season of Altcoin: a supported supported canvas, a decline in the domination of the BTC and a new solid story,” said in Cointelegraph Joanna Liang, founding partner of the venture capital based in Singapore, Jsquare, Joanna.
“The past cycles were motivated by clear catalysts: ICOS in 2017-2018, layer-1 in 2018-2019 and DEFI / NFTS in 2021-2022,” she said before adding:
“In this cycle, the market is still awaiting a convincing primary market signal which can draw new important capital and really ignite a season in allusity.”
Review: Altcoin season 2025 is almost there … but the rules have changed