Bitcoin’s market dominance is displaying signs of significant decline, with technical indicators showing a bearish MACD crossover reminiscent of the 2017-2018 market cycle when its dominance fell from 80% to 35%. This shift occurs alongside expanding decentralized finance (DeFi) activity, which now represents over 28% of trading volume in decentralized ecosystems.
Supporting this trend, the Altcoin Season Index has signaled a breakout, indicating strong sentiment favoring altcoins tied to DeFi and emerging blockchain technologies. Ethereum exemplifies this momentum, having surpassed the Vanguard Group’s market capitalization to become the 28th largest global asset and pushing toward the $4,000 price level on institutional interest.
While Bitcoin ETF inflows continue to impact markets – with every 10,000 BTC influx potentially boosting prices by 1.8% – the combined momentum suggests a broader market transition. Analysts project these dynamics could propel the aggregate altcoin market capitalization toward a potential $15 trillion milestone, framing the current environment as the dawn of a new crypto cycle.