Altcoins are on the verge of ‘most powerful rally’ since 2017 — Analyst

Altcoin Market Cap Surge Sparks Altseason Speculation

The altcoin market capitalization (excluding Ethereum) experienced a substantial $126 billion increase in Q2 2025, igniting speculation of an impending altseason. Analysts are closely monitoring this development, drawing parallels to the explosive 2017 bull run.

Crypto analyst Javon Marks highlighted a breakout on X, comparing the TOTAL3 index (total altcoin market cap excluding Bitcoin and Ethereum) against the US money supply. This comparison suggests altcoins are gaining value relative to US liquidity, indicating increased investor interest and capital inflow. Marks points to a recent bounce off a critical retest level following a breakout, predicting a powerful run rivaling 2017.

Similarly, anonymous trader Moustache identified a bullish weekly inverse head-and-shoulders pattern in the TOTAL3 chart, mirroring the 2021 altcoin season. This pattern suggests a significant rally, forecasting “much higher levels” for altcoins.

However, not all analysts share this optimism. Technical analyst Crypto Scient notes the recent rise hasn’t yet shifted to a higher timeframe bullish trend. The TOTAL2 trend remains bearish after hitting resistance, suggesting a potential distribution phase. Crypto commentator DonaXBT emphasizes the need for a Bitcoin dominance breakdown below 60%, followed by a retest of support between 56% and 58%, as a catalyst for a full altseason. Currently, Bitcoin dominance remains above 60%, with the weekly uptrend intact.

Altcoin spot trading volume, while subdued at $3-$5 billion per day (compared to $8-$12 billion in Q4 2024), is seen as an early indicator of potential growth. The Altcoin Season Index, currently at 24, confirms Bitcoin dominance (historically, below 25 indicates Bitcoin season). However, this is viewed as a potentially positive setup for altcoins, as the index exceeding 30-40 usually precedes significant altcoin pumps.

In summary, while a significant altcoin rally is anticipated by some, others remain cautious, highlighting the need for confirmation through higher timeframe trends and a potential shift in Bitcoin dominance. The current data presents a mixed picture, with early signs of recovery alongside persistent indicators of Bitcoin’s strength.