Altseason confirmed: capital flows into Ethereum and emerging projects

Ethereum is leading a new altseason in 2025, with institutional capital shifting from Bitcoin to emerging altcoins. Other crypto projects such as Mantle, Pendle, and ENS stand out for their high whale activity.

Altseason is just around the corner, and this time it's packed with a narrative that's more institutional than speculative. This month, the crypto market is witnessing a clear rotation of capital from Bitcoin to Ethereum, followed by an expansion into altcoins and emerging projects. This phenomenon, known as altcoin season, marks a key moment in the cryptocurrency cycle, where alternative assets are outperforming the market leader, Bitcoin. 

Thus, what began as a consolidation in BTC has evolved into a sustained rally in Ethereum, which is now acting as a catalyst for a new wave of investment in the crypto ecosystem.

Altseason on the horizon: What does the crypto market have in store for us this August?

The crypto market is showing unequivocal signs of transition this August. Bitcoin, which recently reached the $124.457, has entered a consolidation phase. However, its dominance has dropped significantly, standing at around 58,5%, its lowest level since late January. 

According to experts, this decline in BTC market share is usually the first hint of an altseason, as it reflects a shift in investors' focus towards alternative assets.

Ethereum, for its part, has seen a notable rally. With a current price close to $4.800, ETH has gained more than 56% in the last month and is at only 4% from its all-time high (ATH). This growth has been driven by strong institutional demand, with companies such as SharpLink Gaming and BitMine Immersion Technologies accumulating over 2.3 million ETH in their treasuries. Furthermore, Ethereum futures volume has surpassed that of Bitcoin for the first time since 2022, reinforcing the narrative that ETH is leading this new phase of the market.

For experts, the combination of Bitcoin's declining dominance and Ethereum's rising momentum has created the ideal conditions for capital to begin flowing into altcoins. This macro context, along with indicators such as increased global liquidity and institutional interest, suggests we are on the threshold of an altseason with distinct characteristics: more selective, more narrative, and with greater market depth.

From Bitcoin to Ethereum: The Changing Course of the Crypto Market

Altseason follows a cyclical pattern well known to crypto ecosystem analysts. First, capital is concentrated in Bitcoin, which acts as a gateway to the market. Then, after a consolidation phase, investors rotate to Ethereum, seeking higher returns and exposure to a more dynamic ecosystem. Finally, capital is dispersed to smaller-cap altcoins, where the growth potential is higher.

In 2025, this cycle is unfolding with surgical precision. Ethereum has assumed the role of catalyst, not only due to its price performance, but also due to its growing institutional relevance. ETH/BTC has shown a sustained bullish trend, which has historically been a precursor to altcoin rallies. Additionally, futures volume for ETH and major altcoins has surpassed $ 100.000 millones, representing a significant portion of the total crypto derivatives market.

This capital flow is guided by narratives, liquidity, and trust. Ethereum, with its liquid staking ecosystem, DeFi protocols, and scalability solutions, offers a solid infrastructure for institutional investors to diversify their positions. Therefore, as ETH gains prominence, projects built on its network—and on compatible networks like Arbitrum and Optimism—are beginning to receive attention. This dynamic creates a cascading effect that boosts emerging altcoins, cementing altseason as a phase of expansion and legitimization for the crypto market beyond Bitcoin.

Emerging altcoins: real innovation behind the crypto boom

The capital rotation towards altcoins is benefiting a new generation of projects that combine technological innovation with strong narratives. Blockchains such as Solana, Avalanche y Cardano They're gaining attention for their processing power, active ecosystems, and institutional adoption. Solana, for example, has seen a surge of over 21% in the past 30 days, while Avalanche and Cardano are showing similar signs of growth.

However, beyond Layer 1 blockchains, sectors such as DeFi, NFTs, and Artificial Intelligence are experiencing a revitalization. Protocols such as pendle, which operates on both Ethereum and Arbitrum, are gaining traction for their focus on programmable finance and yield strategies. According to Santiment, Pendle is among the assets with increased whale activity in the last week, with transaction increases exceeding 190%.

Other notable projects include Mantle (MNT), which leads the whale activity rankings with a 935,9% increase in transactions over $100.000. Wrapped Bitcoin (WBTC), Ethereum Name Service (ENS), Wrapped Ethereum (WETH), Stakewise Staked ETH (osETH) y Tether (USDT) They are also among the most active altcoins, indicating strategic diversification by large investors.

These data show that the market's upcoming altseason isn't driven by unbridled speculation, but by a quest for utility, scalability, and narrative. Projects offering concrete solutions—whether in asset tokenization, interoperability, or liquidity management—are leading the charge. The market is rewarding innovation with capital, and that's redefining the opportunity landscape for investors and developers alike.

Movement of whales and large investors

One of the most revealing indicators of this altseason is the behavior of whales. These entities, which manage significant volumes of capital, tend to anticipate market movements and strategically position themselves before major rallies. In the last week, Santiment has identified a notable increase in transactions exceeding $100.000 in the aforementioned altcoins, such as Mantle, Wrapped Bitcoin, ENS, WETH, Pendle, and USDT.

This type of activity suggests a reallocation of capital from Ethereum to altcoins with solid fundamentals and growth potential. The presence of these whales in emerging projects validates their potential and generates confidence in the market. For institutional investors, this type of activity is a sign that the crypto ecosystem is evolving toward a more mature phase, where diversification and strategy replace impulsive speculation.

Ethereum and the reinvention of the crypto market in 2025

The 2025 altseason has yet to be confirmed, but it's already redefining the rules of the game. With Ethereum as its central axis, capital is flowing into projects that combine utility, narrative, and institutional adoption. Bitcoin's decline in dominance, Ethereum's surge, and whale activity in emerging altcoins are shaping a scenario of expansion for the entire crypto ecosystem.

This shift in trend marks a turning point. It's no longer just about seeking quick returns, but about building diversified portfolios in assets that offer real solutions. Altseason could consolidate Ethereum as the market's new center of gravity, and altcoins as legitimate vehicles for financial innovation.

In this context, 2025 is shaping up to be a key year for the legitimization of crypto beyond Bitcoin. The institutional narrative, interest in asset tokenization, and the evolution of sectors like DeFi and AI are shaping a more robust, strategic, and future-proof market.