Key takeaways:
The total market capitalization of TOTAL3 reached an unprecedented $1.18 trillion, indicating growing momentum within the altcoin segment of the cryptocurrency market.
The dominance of USDT experienced a significant decline, suggesting a shift of capital towards riskier assets.
The TradingView ticker, TOTAL3, which monitors the market cap of all cryptocurrencies excluding Bitcoin (BTC) and Ether (ETH), hit a new all-time high of $1.18 trillion on Monday. This value also represented its highest weekly close on Sunday, surpassing the previous high from 2021.
The TOTAL3 chart is utilized by traders as a gauge of altcoin market health, as its cumulative valuation sheds light on capital rotation patterns and the overall strength of the altcoin ecosystem.
In support of altseason speculation, USDT dominance has dropped significantly by 11.8% in the past week, falling from 4.74% to 4.18%. This notable decrease in Tether’s market share typically indicates that investors are shifting capital away from stablecoins towards riskier assets in search of higher returns as market confidence grows. A drop below 4% would reach its lowest USDT dominance since January 2025.
Crypto trader Honey expressed optimistic sentiment, identifying a breakout from a cup-and-handle pattern on the weekly chart. Honey stated,
“We have officially broken out of the cup and candle, which is extremely bullish for our beloved altcoins. Expect fireworks in the coming weeks. TOTAL3 to $1.6T.”
Related: Korean retail capital driving Ether price, treasury demand: Samson Mow
Data points to a slowly brewing “Altseason”
A closer examination of performance metrics among the top 100 crypto assets revealed the increasing strength and complexity of this emerging altcoin cycle.
The data indicated a marked acceleration in altcoin momentum over the last three months, with cumulative returns exceeding Bitcoin’s by more than six times. This trend suggests that while Bitcoin remains the market anchor, capital is progressively rotating into riskier assets, signaling a potential “altseason” in development.
However, not all signals are fully aligned yet. Average returns for the top 100 crypto assets indicate that only 60% of gains currently derive from altcoins, which is below the usual 80% to 90% threshold that typically signifies an established altseason.
Simultaneously, the altcoin season index has risen to 69%, nearing the crucial 75% mark that would validate widespread altcoin dominance.
As a note of caution, CryptoQuant reported that since September 22, exchanges have noted a $4 billion net outflow in ERC-20 stablecoins, with Binance contributing $3 billion (75%) of this total. Its consolidated stablecoin reserves decreased from $45 billion to $42 billion.
Large-scale withdrawals often follow market rallies, indicating that investors are taking profits and relocating capital off exchanges. Lower stablecoin reserves diminish the “dry powder,” restricting buying capacity and increasing the market’s susceptibility to short-term price declines.
Related: $46B poured into stablecoins last quarter: Here’s who took the lead
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
