Bitcoin’s market share falls below 60%, signaling a shift in capital to altcoins. Ethereum leads gains with a 28% weekly surge, boosted by ETF inflows and a breakout near ATH. Pepeto emerges as a memecoin contender, blending viral appeal with real utility and strong presale momentum. Historically, a drop in Bitcoin dominance precedes an altcoin season, with capital flowing into large-cap alts and eventually into high-potential small caps.
Bitcoin’s market dominance has slipped below 60%, a significant milestone that often signals a shift in capital flow from Bitcoin to altcoins. This development is part of a broader trend observed in the cryptocurrency market, where a decrease in Bitcoin’s dominance typically precedes an altcoin season [1]. Ethereum, the leading altcoin, has emerged as a key beneficiary of this shift, experiencing a 28% weekly surge driven by robust ETF inflows and a breakout near its all-time high (ATH) [2].
The surge in Ethereum’s price is largely attributed to the strong inflows into Ethereum ETFs. Over the past six days, Ethereum ETFs have attracted over $2.3 billion in inflows, outpacing Bitcoin’s inflows by a significant margin [3]. This trend reflects growing institutional confidence in Ethereum’s post-merge performance and its evolving role in the crypto ecosystem. Notably, BlackRock’s ETHA fund led the inflows, contributing $640 million in a single day [4]. The deflationary pressure created by ETF-driven demand exceeding Ethereum’s token issuance rate is further bolstering the asset’s price [5].
Ethereum’s price surge has not only benefited the cryptocurrency itself but has also had a ripple effect on the broader market. Ethereum Classic, for instance, experienced a surge in value due to the positive sentiment surrounding Ethereum ETFs [6]. This indicates that Ethereum’s growing institutional acceptance is creating a positive feedback loop for related assets.
The altcoin season of 2025 is expected to be more selective than previous cycles, with narrative-driven runs and a focus on quality and long-term utility [7]. While Bitcoin dominance remains high, it has started to slip, signaling early rotation into altcoins. Martin Burgherr, Sygnum Bank’s chief client officer, notes that the current altcoin cycle could be more mature and less euphoric compared to past cycles, driven by regulatory clarity and maturing market depth [8].
Pepeto, a memecoin contender, has emerged as a notable player in the altcoin space. Blending viral appeal with real utility and strong presale momentum, Pepeto is capturing attention in the crypto community. While memecoins have historically been associated with high volatility and speculative investing, Pepeto’s unique blend of factors suggests it could be a more sustainable contender in the altcoin market [9].
Overall, the current market dynamics indicate a significant shift in capital flow from Bitcoin to altcoins, with Ethereum leading the charge. As the altcoin season of 2025 unfolds, investors and financial professionals should closely monitor the performance of large-cap and high-potential small-cap altcoins, as well as the broader market trends.
References:
[1] Ethereum Rally Accelerates as ETF Inflows Surge: Analysts … (https://bitcoinist.com/ethereum-rally-accelerates-as-etf-inflows-surge/)
[2] Ethereum Surpasses Bitcoin in 2025 Performance as ETH … (https://www.ccn.com/news/crypto/ethereum-bitcoin-2025-performance-eth-etfs/)
[3] Ethereum outpaces crypto market with 41% monthly surge (https://m.economictimes.com/markets/cryptocurrency/ethereum-outpaces-crypto-market-with-41-monthly-surge-bitcoin-at-119k-should-you-buy/articleshow/123274597.cms)
[4] Ethereum Classic Surges As Ethereum ETFs See Record … (https://www.benzinga.com/trading-ideas/movers/25/08/47097118/ethereum-classic-surges-as-ethereum-etfs-see-record-inflows)
[5] Ethereum Surges Past $4600 on $2.3 Billion ETF Inflows … (https://www.ainvest.com/news/ethereum-news-today-ethereum-surges-4-600-2-3-billion-etf-inflows-strong-institutional-demand-2508/)
[6] U.S. Spot Ether ETFs Hit $1B Daily Inflow for First Time (https://www.coindesk.com/markets/2025/08/12/u-s-spot-ether-etfs-hit-usd1b-daily-inflow-for-first-time)
[7] Ethereum Price Reaches $4.7K: How High Can ETH Go? (https://cointelegraph.com/news/ethereum-marching-toward-all-time-highs-as-traders-predict-13k-eth-price)
[8] $1 Billion Day – Ethereum ETFs Hit Inflow Milestone (https://99bitcoins.com/news/altcoins/1-billion-day-ethereum-etfs-hit-inflow-milestone-who-called-it/)
[9] Cointelegraph Magazine: Altcoin Season 2025 – Altseason Here Rules Changed (https://cointelegraph.com/magazine/altcoin-season-2025-altseason-here-rules-changed/)
