Altcoins Gain Ground While Bitcoin’s Dominance Slips Below 58%

Bitcoin’s dominance in the cryptocurrency market has taken a notable dip, with altcoins like XRP and Dogecoin making significant gains. According to data from CoinGecko, Bitcoin now accounts for 57.8% of the total crypto market capitalisation, down from 61.3% just a week earlier and well below the 65% peak seen in the last three months.

XRP surged 7.5% over the past 24 hours to trade around $3.29, while Dogecoin climbed 6.2% to $0.22. Ethereum also joined the rally, crossing the $4,000 mark for the first time since December. This shift comes amid growing speculation about a potential “altcoin season”—a period when alternative cryptocurrencies outperform Bitcoin, although experts warn it may not mirror previous cycles.

Gerry O’Shea, Head of Global Market Insights at crypto asset manager Hashdex, said the market has changed structurally due to the introduction of U.S.-based exchange-traded funds and large-scale corporate accumulation of Bitcoin. “Institutional buyers are now providing a kind of safety net,” he explained, noting that while volatility remains likely, the dynamics differ from earlier bull runs.

In past cycles, altcoin seasons were driven largely by speculative trends like NFTs, meme coins, and ICOs. O’Shea believes this time could be different, with investors favouring projects that showcase clear real-world utility, especially those aligned with regulatory progress and stablecoin adoption. He pointed to platforms like Ethereum and Solana, which power stablecoin infrastructure, as likely beneficiaries of this shift.

At the time of reporting, Bitcoin was trading around $116,000, up 0.1% on the day and 96% over the past year. A Myriad Linea Markets prediction poll found that nearly two-thirds of participants expect Ethereum to reach $5,000 before the year ends.

Recent market resilience has been tested by large transactions, such as a $9 billion Bitcoin sale executed by Galaxy Digital for a Satoshi-era investor. Fortunately for Bitcoin’s price, institutional players like Strategy (formerly MicroStrategy) have been actively buying, absorbing much of the selling pressure.

While Bitcoin’s shrinking dominance may continue in the short term, O’Shea maintains that its long-term prospects remain robust, driven largely by sustained institutional interest.