Key takeaways:
The TOTAL3 market cap has reached an unprecedented $1.18 trillion, indicating growing momentum in the altcoin segment of the crypto market.
USDT dominance has significantly decreased, suggesting a shift of capital into risk assets.
The TradingView ticker, TOTAL3, which monitors the market capitalization of all cryptocurrencies except Bitcoin (BTC) and Ether (ETH), achieved a new all-time high of $1.18 trillion on Monday. This figure also represented its highest weekly close on Sunday, eclipsing its 2021 peak market cap.
Traders refer to the TOTAL3 chart for insight into the health of the altcoin market, as its combined valuation reflects capital rotation trends and the overall stability of the altcoin ecosystem.
Further fueling speculation about an altseason, USDT dominance has plummeted by 11.8% in the last week, dropping from 4.74% to 4.18%. This notable drop in Tether’s market share usually indicates that investors are moving funds away from stablecoins and into higher-risk assets, motivated by a desire for better returns as market confidence grows. A further decline below 4% would align with the lowest USDT dominance recorded since January 2025.
Crypto trader Honey has also shown bullish optimism, noting 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 data among the top 100 crypto assets revealed an increasing strength and complexity in this emerging altcoin cycle.
The data showed a significant uptick in altcoin momentum over the past three months, with aggregate returns exceeding Bitcoin’s by over six times. This trend hints that while Bitcoin remains a market anchor, capital is progressively shifting towards higher-risk assets, indicating the formation of an “altseason”.
However, not all signals are fully synchronized yet. Average returns for the top 100 crypto assets indicate that currently only 60% of gains are coming from altcoins, beneath the typical 80% to 90% threshold that defines an established altseason.
Simultaneously, the altcoin season index has increased to 69%, nearing the crucial 75% mark that would affirm a widespread altcoin dominance.
Adding an element of caution, CryptoQuant noted that since September 22, exchanges have seen a net outflow of $4 billion in ERC-20 stablecoins, with Binance accounting for $3 billion (75%) of this total. Its combined stablecoin reserves have decreased from $45 billion to $42 billion.
Large withdrawals often come after market gains, indicating that investors are taking profits and moving their capital off exchanges. A decrease in stablecoin balances lowers the available “dry powder,” restraining buying power and making the market more susceptible to short-term price declines.
Related: $46B poured into stablecoins last quarter: Here’s who took the lead
This article does not constitute investment advice or recommendations. Every investment and trading action carries risk, and readers should conduct their own research before making decisions.
