Bitcoin dominance falls as Ethereum leads the charge: Is altcoin season beginning?

Bitcoin's dominance is declining while Ethereum is rapidly gaining ground. We explore whether this shift represents the start of the long-awaited altcoin season and what to expect.

Since July, the crypto market has begun to show signs of change. Bitcoin, which for years has been the undisputed star of the crypto world, has seen its market share decline. domain is reduced, rising from 64% to 57%. Meanwhile, Ethereum has taken advantage of this movement to grow significantly, increasing its share from 9% to 13,8% and reaching a market capitalization exceeding $540.000 billion.

Although specialized indicators, such as the Altcoin Season Index CoinMarketCap and Blockchain Center have not officially confirmed that a new “altseason”, that stage where altcoins dominate the crypto market, dominance data suggests that a major transition in the cryptocurrency cycle could be underway. 

The current scenario has led many analysts and investors to wonder if we are on the verge of a new era, where the focus will shift from Bitcoin to other cryptocurrencies with growth potential.

What is altseason and how do you identify it?

The altseason, or altcoin season, is a cyclical phenomenon in the crypto ecosystem where alternative cryptocurrencies to Bitcoin — such as Ethereum, Solana, Cardano and many others — begin to outperform the market leader in terms of performance. This cycle does not happen by chance: it is usually preceded by a consolidation phase for Bitcoin, followed by an increase in Ethereum's dominance, and finally by a widespread rally in altcoins.

To identify an altseason, analysts look at metrics like the Altcoin Season Index, which measures how many altcoins have outperformed Bitcoin over the past 90 days. When more than 75% succeeds, we are officially considered to be in altseason. However, this indicator has not yet reached that threshold, suggesting that the market is in a transition phase.

Historically, altseasons have coincided with moments of technological innovation, institutional narrative, and ecosystem expansion. In 2021, for example, the rise of DeFi and NFTs fueled an altseason marked by explosive returns. Today, although the context is different, the pattern seems to be repeating itself: Ethereum leads, Bitcoin loses ground, and altcoins are beginning to wake up.

Ethereum emerges as a key driver of innovation

Ethereum's rise isn't just numerical, it's narrative. Its growth in dominance—from 9% in July to 13,8% today—reflects a consolidation of its role as key infrastructure for the crypto ecosystem. While Bitcoin maintains its position as reserve of value y active refuge, Ethereum has become the innovation engine: from smart contracts to DeFi, RWA and scalability solutions.

The institutional narrative has begun to recognize Ethereum's functional value, especially in contexts where utility outweighs speculation. Large funds, financial platforms, and developers are investing in its ecosystem, which translates into greater capitalization and relevance. Unlike previous cycles, where Ethereum was seen as a complement to Bitcoin, today it competes for prominence.

However, this doesn't imply a loss of relevance for Bitcoin. As mentioned, its role as a foundation asset remains fundamental, especially in contexts of macroeconomic uncertainty. Therefore, what we're seeing is a diversification of leadership: Bitcoin as a pillar of stability, and Ethereum as a catalyst for innovation. 

So, if Ethereum maintains its momentum and altcoins begin to follow suit, we could be witnessing a structural shift rather than a simple temporary rally. The key will be to see whether this trend holds and whether altseason indicators begin to align with the market narrative.

Is Altseason about to explode?

Current market data paints a transitional picture. With Bitcoin losing ground and Ethereum gaining prominence, altcoins are beginning to show signs of life. However, the major indices have yet to confirm a full-blown altseason. Even so, experts assure us that we are very close, and that the market is gauging its next moves.

The history of the crypto market has taught us that cycle changes aren't always accompanied by clear announcements. Often, it's subtle movements—such as the rise in Ethereum's dominance or the rotation of capital into altcoins—that herald major waves. In that sense, the current moment deserves attention.

For investors, analysts, and crypto enthusiasts, this could be the prelude to a new phase. One in which Ethereum and altcoins not only accompany Bitcoin, but also lead narratives, attract capital, and redefine the ecosystem map. If the coming weeks confirm this trend, we could be witnessing the beginning of an altseason with its own characteristics: more institutional, more segmented, and more strategic.