The cryptocurrency market is showing strong signs that an altcoin season is in full swing, as capital shifts away from Bitcoin and Ethereum and into smaller cryptocurrencies. This trend is supported by four key indicators:
Evidence from market data suggests a notable shift in investor behavior. While Bitcoin's price has declined and its trading volume is down, altcoin trading volume is on the rise. This is a classic pattern in the crypto market cycle, where capital first flows into Bitcoin, then Ethereum, and finally accelerates into a broad range of altcoins. This trend is further supported by a drop in Bitcoin Dominance—a measure of its market share—as altcoin market capitalization increases.
The Altcoin Season Index (ASI) from Blockchain Center has reached 80 points, its highest level for 2025. This index measures the performance of the top 50 cryptocurrencies (excluding stablecoins) against Bitcoin over the past 90 days. A score of 80 indicates that 80% of these coins have outperformed Bitcoin, confirming that the market is in an altcoin season. This index could climb even higher, potentially reaching 100 before the cycle ends.
Technical analysis shows that TOTAL3, the total market capitalization of all altcoins excluding Bitcoin and Ethereum, is on the verge of a major breakout. This metric has been forming a large bullish triangle over the last four years and is now testing its all-time highs. A successful breakout above the $1.16 trillion resistance level would signal a powerful acceleration of the altcoin season, similar to cycles seen in 2019-2021.
The surge in altcoin liquidity is being fueled by major cryptocurrency exchanges like Upbit, Coinbase, and Bithumb, which have significantly ramped up their new token listings. This wave of new listings enhances liquidity, attracts more speculation, and increases trading volume. The more altcoins are listed and traded, the more this positive feedback loop accelerates the altcoin season, bringing in new investors and momentum.
September 2025, Cryptoniteuae