Bitcoin Dominance Holds Firm as Altcoins Show Early Signs of Rotation

Despite recent gains across select DeFi and RWA tokens, Bitcoin continues to dominate the crypto landscape, with the Altcoin Season Index sitting at 43/100, according to today’s CoinMarketCap data.

This level—well below the 75 mark—suggests the market remains in “Bitcoin Season,” even as capital begins trickling into alternative assets.

BTC’s market share has declined slightly from June’s 65.12% to 60.38%, but the move isn’t enough to signal a full shift toward altcoins. The Altcoin Season Index has risen 126% over the past month, yet with no daily change and BTC’s stability, the market appears to be in a holding pattern.

DeFi tokens driving isolated momentum

Certain decentralized finance protocols are outperforming, led by NAVX and StaFi (FIS). NAVX surged 59% over 30 days after launching a $700K xBTC lending initiative on OKX, while StaFi’s 93% rally was driven by token burns and new staking mechanisms tied to AI integrations.

Still, Bitcoin’s 7-day gain of 0.4% quietly outperformed larger altcoins like Ethereum (+3.5%) and XRP (-5.5%), suggesting most of the DeFi surge is isolated to smaller-cap plays rather than a broad rotation.

Stablecoin and RWA narratives attract niche demand

Real-world asset (RWA) tokens such as DIA (+12%) have benefitted from institutional partnerships and tokenized treasury narratives. Ondo Finance’s USDY product recently hit $440 million in assets under management, signaling traditional finance’s growing interest in crypto-backed yield instruments.

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However, the biggest flows are still going into Bitcoin ETFs, which attracted $16.7 billion in July alone, pushing total ETF AUM to $152 billion. These flows continue to anchor Bitcoin as the core crypto asset for institutions.

Conclusion: Altcoin momentum building—but not enough yet

Momentum is returning to parts of the altcoin market, but Bitcoin remains the gravitational force in crypto. Until the Altcoin Season Index pushes above 75 and ETF inflows slow, altcoins will likely remain in Bitcoin’s shadow.

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.