Key takeaways:
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TOTAL3 market cap hit a report $1.18 trillion, signaling accelerating momentum inside the altcoin cohort of the crypto market.
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USDT dominance dropped sharply, hinting at capital rotation into danger belongings.
TradingView ticker, TOTAL3, which tracks the market capitalization of all cryptocurrencies excluding Bitcoin (BTC) and Ether (ETH), reached a brand new all-time excessive of $1.18 trillion on Monday. The metric additionally marked its highest weekly shut on Sunday, surpassing its peak market capitalization from 2021.
Merchants use the TOTAL3 chart as an indicator of altcoin market well being as a result of its mixed valuation supplies perception into capital rotation patterns and the power of the broader altcoin ecosystem.
Including gas to the altseason hypothesis, USDT dominance has plummeted by 11.8% over the previous week, dropping to 4.18% from 4.74%. This sharp decline in Tether’s market share sometimes signaled that traders are rotating capital away from stablecoins and into riskier belongings, searching for greater returns as market confidence builds. A drop under 4% would match its lowest USDT dominance since January 2025.
Crypto dealer Honey additionally expressed bullish sentiment and recognized a breakout from a cup-and-handle sample on the weekly chart. Honey stated,
“We now have formally damaged out of the cup and candle, which is extraordinarily bullish for our beloved altcoins. count on fireworks within the coming weeks. TOTAL3 to $1.6T.”
Associated: Korean retail capital driving Ether value, treasury demand: Samson Mow
Information factors to a slowly brewing “Altseason”
A deeper have a look at efficiency information among the many high 100 crypto belongings highlighted the rising power and the complexity of this rising altcoin cycle.
The information revealed a decisive acceleration in altcoin momentum over the previous three months, with cumulative returns outpacing Bitcoin’s by greater than sixfold. This shift instructed that whereas Bitcoin continues to anchor the market, capital is more and more rotating into riskier belongings, which is an indicator of an “altseason” in formation.
Nonetheless, not all indicators are absolutely aligned but. Common returns for the highest 100 crypto belongings present that solely 60% of features presently stemmed from altcoins, under the 80% to 90% threshold that sometimes defines a longtime altseason.
On the similar time, the altcoin season index has climbed to 69%, closing in on the important 75% line that will affirm widespread altcoin dominance.
Including a layer of warning, CryptoQuant reported that since Sept. 22, exchanges have seen a $4 billion web outflow in ERC-20 stablecoins, with Binance driving $3 billion (75%) of the whole. Its mixed stablecoin reserves have fallen to $42 billion from $45 billion.
Massive-scale withdrawals usually observe market features, suggesting traders are taking income and transferring capital off exchanges. Decrease stablecoin balances cut back the “dry powder,” limiting shopping for energy and growing the market’s vulnerability to short-term value dips.
Associated: $46B poured into stablecoins final quarter: Right here’s who took the lead
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.
