Altcoins Gain Momentum as Bitcoin Dominance Drops to 61.6%

The cryptocurrency market is experiencing a notable shift in capital flows as Bitcoin's market dominance has dropped to 61.6%, marking a 2.36% decrease.

Meanwhile, Ethereum and other altcoins are gaining traction, with Ethereum dominance climbing to 10.9% (+1.51%) and “Others” rising to 27.6% (+0.85%), according to CoinMarketCap data.

Declining BTC dominance signals changing investor sentiment

Bitcoin dominance, which reflects Bitcoin’s share of the total cryptocurrency market cap, is often used as a barometer of market sentiment. A decrease typically signals growing confidence in altcoins or heightened appetite for risk.

Over the past month, BTC dominance has slipped from 64% to its current 61.6% level. Compared to its recent high of 65.1% on June 27, 2025, this trend indicates investors are rotating capital into Ethereum and emerging projects.

Ethereum’s dominance rose from 9.3% last month to 10.9% today, a significant move that aligns with rising institutional interest and the broader narrative of a potential “altseason.” Likewise, the category of “Others”—which includes mid- and small-cap altcoins—gained 1% over the month, suggesting broader diversification among traders.

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Market implications and outlook

This redistribution of market share may reflect increased bullishness around Ethereum’s upcoming upgrades, the growth of real-world asset (RWA) tokenization, and speculation around ETF approvals. Ethereum’s 60%+ 7-day price gain, as seen in other data, also reinforces the current altcoin momentum.

If Bitcoin’s dominance continues to decline, it may signal the start of a stronger altcoin rally. However, traders should remain cautious, as sudden shifts in sentiment could lead to volatility, especially if BTC reasserts dominance during broader market corrections.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.