Key Takeaways
BTC dominance dropped to 60% after a 5% decline last week, boosting altcoin momentum. But what’s next for the sector?
Last week, Bitcoin [BTC] dominance dropped to 5.8%, the largest decline in 2025, which triggered an altcoin surge among select tokens.
The recovery saw the altcoin season index reading climb above 50% for the first time since February. But the top performers among large market caps were the usual tokens seen in May and last November.
Source: Blockchain Centre
In the past month of trading, Stellar [XLM] bagged over 100% gains, followed closely by Hedera Hashgraph [HBAR] at 91%.
Ripple [XRP] ranked third at 71% while Dogecoin [DOGE] pumped 66% and Ethereum [ETH] jumped 61%. But BTC only rallied 16%. In fact, most of these altcoin gains happened last week as BTC dominance waned.
So what’s next for the altcoin sector this week? Will they consolidate recent gains, dump, or extend the rally?
Market experts’ views on altcoin season
Last week’s surge in altcoins meant that investors were willing to move further out of the risk curve beyond BTC and ETH, according to Lukas Enzersdorfer-Konrad, the Deputy CEO of Bitpanda crypto brokerage firm.
In an email statement, Konrad told AMBCrypto,
“Whether this marks the start of a sustained altcoin season remains to be seen, but the current rally shows just how quickly sentiment can turn once confidence and liquidity are in place.”
He added that the broader ecosystem was ‘healthy’ as BTC stays range-bound above $118K.
For its part, Altcoin Vector, the altcoin insights section of Swissblock, reinforced that it was still a firm altcoin season, similar to the traction seen in last November.
Source: Altcoin Vector
The firm added,
“BTC doesn’t need to break out. It just needs to hold. As long as BTC stays stable, ETH and alts have room to expand. The structure is aligned. The impulse is active. Altseason is live.”
Source: USDT dominance, TradingView
Besides, the USDT dominance has declined significantly, from 6% to 4.2%, mirroring last November’s altcoin season momentum.
The decline meant more buying power as users deploy their USDT holdings to acquire altcoin gems. But any recovery on the indicator could suggest the altseason momentum is fading, hence worth tracking.
