Coinbase Flags Early Signs of Altcoin Season, With Ethereum at Core of Momentum

Key Points

1. Ethereum's market cap has surged 50% since July, fueled by institutional treasury buys and regulatory advancements.

2. Bitcoin's market dominance has decreased from 65% in May to about 59% in August, indicating a potential shift toward altcoins.

3. The Altcoin Season Index remains below the threshold for a full altcoin season, but conditions like Fed rate cuts and stablecoin liquidity are building momentum.

4. Institutional demand, including large ETH purchases by firms like Technologies, is a key driver, while retail capital remains on the sidelines in money market funds.

5. Tokens linked to Ethereum, such as Arbitrum and Lido DAO, have shown strong performance, with Lido gaining 58% in a month due to its ETH exposure and regulatory developments.