Altcoins’ roaring returns and falling USDT stablecoin dominance suggest ‘altseason’ is here
The cryptocurrency market may be approaching an altseason, where altcoins outperform Bitcoin. Technical indicators suggest a potential rally starting in May 2025, with the TOTAL2 chart breaking above a downtrend line and forming higher-low patterns. A move above the $1.25 trillion resistance could indicate a strong uptrend and capital rotation from Bitcoin to altcoins. Bitcoin Dominance (BTC.D) has declined by 4% recently, signaling a shift of capital towards altcoins. Tether (USDT) dominance has dropped to 4.59%, with potential support around 3.90%, indicating further capital rotation. Over the past week, altcoins like Ether, XRP, and Solana have significantly outperformed Bitcoin. Many altcoins remain 70% to 90% below their all-time highs, suggesting an early recovery opportunity. The combination of weakening Bitcoin dominance and rising altcoin market cap supports the possibility of an altseason if current trends persist.
