Setting the stage for a potential 2025 altcoin market surge, altcoin dominance has bottomed out. Bitcoin dominance is about to hit a very key level at around 65% and that is expected to lead to a big drop. Altcoin dominance reaches its lowest ever point. Bitcoin dominance is set to further decline. Together, these three market signals indicate that Altseason 2025 is just around the corner.
The prevailing market configuration is similar to that during the altcoin bull runs of 2017 and 2021, per crypto analysts. The foundational elements for Altseason 2025 are already in place.
Investor outlook is optimistic as liquidity continues to return to altcoin markets. This is additional bullish confirmation on the long awaited Altseason 2025. A possible 37% decline in Bitcoin dominance might signal the beginning of significant altcoin rally.
Early signs of capital rotation favoring altcoins include rising ETH/BTC ratios and an increasing Total Value Locked (TVL) in decentralized finance (DeFi). At the time of this writing, the total value locked—TVL—in DeFi has surmounted greater than $117 billion. It is nearing previous cycle highs.
Forecasts predict that the Bitcoin dominance will fall up to 37%. Looking backwards at previous full crypto market cycles in 2017 and 2021 reveal a familiar story. When Bitcoin dominance drops more than 45% or more Bitcoin dominance dropping, altcoins generally outperform by a large margin.
This same type of shift in overall market dynamics is likely to set the stage for Altseason 2025 and the next altcoin bull run.
