Key takeaways:
TOTAL3 market capitalization reached a historic $1.18 trillion, indicating a surge in growth within the altcoin sector of the cryptocurrency market.
USDT dominance experienced a significant decline, suggesting a shift of capital towards riskier investments.
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 also marks its highest weekly close on Sunday, exceeding its peak market cap from 2021.
Traders utilize the TOTAL3 chart as a gauge for altcoin market health, as its combined valuation provides insights into capital rotation trends and the strength of the overall altcoin ecosystem.
Further fueling the altseason speculation, USDT dominance has dropped by 11.8% over the past week, decreasing from 4.74% to 4.18%. This notable fall in Tether’s market share often indicates that investors are moving capital away from stablecoins and towards higher-risk assets, chasing better returns as market confidence increases. A drop below 4% would match its lowest USDT dominance since January 2025.
Crypto trader Honey also expressed optimistic views and highlighted a breakout from a cup-and-handle formation 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 emphasized the increasing strength and complexity of this developing altcoin cycle.
The data indicated a marked uptick in altcoin momentum over the past three months, with cumulative returns significantly surpassing Bitcoin’s by more than six times. This transition implies that while Bitcoin remains the market anchor, capital is increasingly being redirected to riskier investments, signaling the formation of an “altseason.”
However, not all indicators are fully in sync yet. Average returns for the top 100 crypto assets reveal that only 60% of gains currently originate from altcoins, below the 80% to 90% benchmark that typically characterizes a well-established altseason.
Simultaneously, the altcoin season index has risen to 69%, approaching the crucial 75% mark that would confirm widespread altcoin dominance.
Adding a note of caution, CryptoQuant noted that since September 22, exchanges have experienced a $4 billion net outflow in ERC-20 stablecoins, with Binance accounting for $3 billion (75%) of the total. Its overall stablecoin reserves have decreased from $45 billion to $42 billion.
Large-scale withdrawals frequently follow market uptrends, indicating that investors are securing profits and shifting capital off exchanges. Reduced stablecoin reserves lower the available “dry powder,” limiting purchasing power and heightening the market’s susceptibility to short-term price fluctuations.
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.
