The crypto market could be entering one of its most exciting moments yet, a true altcoin season. After moving sideways for months, altcoins have jumped over 50% in value since early July. According to Coinbase analysis says big investors are buying Ethereum (ETH), which is helping altcoins rise. This trend could see massive boost in September.
Let’s see what Coinbase’s analysis says.
Droping Bitcoin Dominance – A sign
Coinbase research says Bitcoin’s dominance has fallen from 65% in May to 59% in August, hinting at an early shift toward altcoins. The Altcoin Season Index is still at 53, below the 75 mark that signals a full alt season.
Altcoin value has surged over 50% in just six weeks, now at $1.4 trillion. With new liquidity expected in late Q3 and early Q4 2025, this could speed up capital rotation into alts.
Rates, Cut & Global Liquidity
Coinbase believes the timing for an altcoin rally looks better than it has in months. A big reason is the chance the U.S. Federal Reserve will cut interest rates in September or October. Lower rates usually make people more willing to put money into riskier assets like crypto.
Right now, there’s also a huge $7.2 trillion sitting in U.S. money market funds, basically cash on the sidelines. If confidence improves, some of that money could flow into crypto.
Coinbase’s money supply data points to fresh liquidity by late Q3 2025, and market liquidity is already improving after months of decline, boosted by clearer stablecoin rules.
ETH at the Center: Big Treasuries, Bigger Narrative
Ethereum’s growing popularity among big investors is now driving major market changes and its social dominance hit 17%.
At the same time, the biggest Ethereum treasury holders now own almost 3 million ETH, which is over 2% of all ETH in existence. One major player Bitmine Immersion bought 1.15M ETH and plans to buy more after raising $20B, while Sharplink Gaming holds 598.8K ETH.
This rising demand has also boosted related tokens like Lido DAO (LDO), which provides liquid staking services. LDO’s price has climbed nearly 60% this month, helped by the U.S.
September To Spark Altcoin Season
Coinbase says we might be in the early phase of a shift from big coins to smaller ones. If this keeps up, September could be when altcoins shine, bringing more price swings and bigger profit chances for those willing to take the risk.
