The cryptocurrency market is going through a mighty storm. Truth Social’s new S-1 to create a “Crypto Blue Chip ETF” Stablecoin reserves on Binance are at record highs, fueling renewed speculation of an imminent altseason. Speculative fever indicators across the board point to the possibility of capital rotating into other altcoins, even as bitcoin moves to consolidate among all-time highs.
This influx has expanded the global stablecoin market cap to over $254 billion, representing an enormous influx of liquidity into the crypto markets. Tether USDT is still #2 market cap with $159 billion, and USDC is 3rd with $62 billion. This huge accumulation of stablecoin reserves, specifically on Binance, is the primary driver of a potential altcoin revival.
Bitcoin dominance has slowly but surely dropped over the last three months. This drop means that capital could be leaving Bitcoin and flowing into altcoins.
The TOTAL2 chart indicates the total market capitalization, excluding Bitcoin, of all cryptocurrencies. So far, though, it has stayed under the key resistance level of $1.25 trillion. A confirmed breakout above this level would suggest a strong altcoin season, with a potential upside target of $1.55 trillion.
Crypto fundraising increased to $10 billion just in the second quarter of this year. This is its best reading since early 2022, further contributing to the bullish sentiment in the market. This surge in investment signals increased investor confidence. They have a very bullish outlook for the overall crypto space long term, including very high hopes and aspirations for many altcoins.
Increasing altcoin reserve imbalances on Binance indicate that altcoins may be dominating very soon. Should it be confirmed, the pattern would have an immediate upside target of $1.55 trillion.
