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

2025-08-15 05:33:24

Main Idea

Coinbase highlights early signs of an upcoming altcoin season, with Ethereum's recent surge driven by institutional demand and regulatory shifts, while Bitcoin's market dominance declines.

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.

Description

Coinbase believes crypto markets may be on the cusp of a full-scale altcoin season, with institutional demand for Ethereum playing a central role and a potential Federal Reserve rate cut in September setting the stage for retail inflows. In its August research outlook published Thursday, the exchange said the market has largely followed the path it predicted earlier this year, when it expected new highs in the second half of 2025. Stronger-than-anticipated macro conditions and clearer regulatory...

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