Key takeaways:
The TOTAL2 market cap has hit $1.5 trillion for the primary time since January.
Exchanges acquired over $1.7 billion in stablecoin inflows this week, and analysts suppose the positioning is towards altcoins.
TOTAL3 will increase stay in an early stage, with analysts eyeing a parabolic rally to $5 trillion.
Capital rotation from Bitcoin (BTC) to altcoins continues with the TOTAL2 market cap (excluding BTC) tagging $1.5 trillion on Friday. This stage is the upper timeframe resistance, which was final examined in January 2025.
Whereas the markets might stall at this vary, the long-term trajectory stays prime for a breakout above $1.5 trillion, eyeing an all-time excessive market cap of $1.72 trillion. If TOTAL2 closes the month-to-month candle above $1.51 trillion, it might be the very best optimistic shut for the altcoin index in historical past.
Stablecoin surge continues to gasoline altseason rally
Cointelegraph not too long ago reported that Binance’s USDT and USDC balances reached a brand new excessive of $31 billion in June 2025, underlining sidelined capital. This wave of liquidity has continued to circulation as centralized exchanges like Binance and HTX recorded sharp spikes in stablecoin inflows, receiving $895 million and $819 million this week. This shift displays continued curiosity in Bitcoin and a doubtlessly deeper accumulation part for high-beta altcoins.
On July 16, over $2 billion price of stablecoins, primarily USDT, have been deposited into main derivatives platforms, suggesting a major uptick in leverage urge for food amongst refined merchants. Tether Treasury’s fresh mints again the narrative of institutional demand, with a rising inclination towards risk-taking.
Whereas Binance dominated greater than 55% of world buying and selling quantity, over $8 billion day by day, whale BTC deposits have dropped by $2.25 billion, suggesting lowered promote stress for Bitcoin, releasing up room for capital to rotate into the altcoin market.
Whereas Bitcoin stays the liquidity anchor, the information factors to a rising undercurrent amongst establishments and high-volume merchants could already be positioning forward of the following main altcoin breakout.
Related: SUI’s next ‘altcoin season’ stop could be $5: Here’s why
Altseason nonetheless in early levels as TOTAL3 eyes $5 trillion
The broader altcoin market, excluding Ethereum, stays within the early levels of what many analysts imagine could possibly be a historic altseason. At the moment valued at roughly $1 trillion, one market commentator steered the overall altcoin market cap might climb as excessive as $5 trillion this cycle, a 400% upside.
Nameless crypto analyst Mags noted that altcoin cycles are inclined to unfold in distinct phases: starting with a breakout from extended consolidation, then progressively trending increased. Probably the most explosive positive factors, nevertheless, normally happen within the last part, a steep vertical rally compressed into just some month-to-month candles. This final leg has traditionally produced essentially the most important returns within the shortest span, catching latecomers off guard.
Supporting the early-stage narrative, the Altseason Index highlights that whereas the 30-day indicator has not too long ago crossed the 75 threshold, signaling early capital rotation into altcoins, the 60-day index stays subdued. This suggests that comparatively few altcoins have outperformed Bitcoin over a sustained interval.
With sentiment constructing and capital flowing, analysts warning that whereas upside potential stays important, disciplined execution and timing could possibly be key to capturing the complete extent of the transfer.
Related: 3 charts scream ‘It’s altcoin season’ as Bitcoin dominance hits 8-week lows
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a choice.
