Bitcoin dominance spiraled to its lowest level in five months, down to 60.51%. While dominance is recovering, crypto experts predict the onset of the altcoin season. The dramatic decline in BTC dominance is considered an early indicator of an altcoin season. Ripple, Solana and Dogecoin post double-digit gains, leading an altcoin rally in the second half of 2025.
Bitcoin dominance unravels
Bitcoin (BTC) dominance dropped to its lowest level since June, on July 21, 2025. Since then BTC dominance recovered, however it is ranging under 62%, at the time of writing on Thursday.
Bitcoin dominance is a key ingredient in the recipe for an altcoin season. For 75% of the top 50 cryptocurrencies to outperform BTC consistently in a 90-day timeframe, Bitcoin dominance fades and paves the way for gains in altcoins.
Altcoin season is marked by rallies in tokens like Ethereum (ETH), XRP, Solana (SOL) and Dogecoin (DOGE), considered blue-chip altcoins in their respective categories.
While Bitcoin dominance is under 62%, altcoin season is loading and top cryptos are outperforming BTC in the weekly and bi-weekly timeframe, according to price data from Crypto.news.
XRP gained 45%, SOL is up nearly 30% and DOGE added 46% to its value in the past month. These altcoins are leading gains in their respective categories, supporting a bullish thesis in the second half of 2025.
In the same timeframe, Bitcoin price is nearly unchanged. Post hitting a new all-time high above $123,000, Bitcoin erased newfound gains and hovers near $118,000 on Wednesday.
XRP, Solana and Dogecoin lead altcoin rally
XRP is trading nearly 14% below its all-time high. The native token of the XRPLedger is trading at $3.1755 on Thursday. The volume of XRP on exchanges has climbed 6% in the past month, meaning there is higher selling pressure on the altcoin, as seen on Santiment.
XRP is rallying despite the rising selling pressure, there is demand for the altcoin among traders and institutional investors.
The altcoin could continue its climb if there is enough demand to absorb the selling pressure across exchange platforms.
Solana added $2.4 billion in total value of assets locked (TVL) in the last four months, according to DeFiLlama data. The increase in TVL is indicative of growth on the Solana blockchain. DEX volume on Solana exceeds $3.5 billion in the past 24 hours, indicating the utility of the SOL blockchain for traders.
Solana added 30% to its value in the past month, and nearly 8% in the last week. SOL trades at $186, at the time of writing on Thursday. SOL could extend gains by 18% and test resistance at $220, a key resistance level for the token.
SOL could sweep support at $120, a key liquidity level for the token. Solana could correct in the short-term, however the token is expected to test resistance at $220 on its path to test its January 2025 peak at $295.
Dogecoin price is correlated at 0.84 with Bitcoin. As Bitcoin holds above key support after hitting a new all-time high last week, DOGE continues to rally. DOGE trades at $0.2378 at the time of writing, up 45% in the past month and nearly 13% in the last week.
Dogecoin price remains above a key support level, even as open interest drops across derivatives exchanges. The long/short ratio is 0.91 on Coinglass, meaning that traders are betting on a drop in DOGE price.
Options volume continues to hold steady above average levels. Therefore DOGE could begin a recovery and lead the altcoin rally in meme coin tokens in H2 2025.
Hidden altcoin gems for the 2025 cycle
Pudgy Penguins (PENGU), Kaspa (KAS), Jupiter (JUP) and Official Trump (TRUMP) could emerge as hidden altcoin gems in H2 2025. Previous altcoin seasons were marked with a rally in the top 50 tokens ranked by market capitalization.
Institutional capital allocation and Bitcoin’s sustained dominance above 60% are factors that differentiate the current market cycle from previous ones. Blue-chip altcoins with catalysts that support their bullish thesis could push token prices higher in H2 2025.
PENGU, KAS, JUP and TRUMP rallied between 9 and 21% in the past 24 hours, according to data from Crypto.news. In the last seven days the tokens have rallied in double-digits, while Bitcoin corrects.
Why Altcoin season is brewing in H2 2025
While crypto experts and traders speculate the end of the altcoin season, Bitcoin price chart does not indicate a cycle top yet. As BTC dominance ranges, it is likely that altcoins recover from the recent correction and test their 2025 peaks once again.
Data from Digital Asset Fund Flows report by CoinShares shows rising capital flows to Ethereum, Solana and other altcoins. Recent announcements of corporates and WallStreet firms adding altcoins to their treasuries, similar to the thesis of Bitcoin as a reserve, support the thesis of a brewing altcoin season.
With rising profit-taking in Bitcoin, it is but obvious that capital rotation allows altcoins to absorb demand from retail traders.
The second of 2025 could therefore be marked by a rally in top altcoins, double-digit gains and higher profit-taking in Bitcoin.
James Harris, Group CEO of Tesseract commented on the state of the crypto market, the market capitalization in a written note:
“Perhaps most telling is the institutional behaviour we’re seeing now. Companies are treating crypto as a treasury asset: Strategy (formerly MicroStrategy) added well over 20,000 BTC so far this year, and others are following their lead. We’re also seeing listed entities like Sharplink Gaming actively buying ETH, and DeFi Development Corp accumulating Solana (SOL) — with public announcements that help fuel a self-reinforcing demand loop.”
Dom Harz, Co-Founder of BOB told Crypto.news believes that the real opportunity this cycle lies at the intersection of Bitcoin and Ethereum. Harz said:
“The real opportunity lies at the intersection of Bitcoin and Ethereum. With innovations like BitVM and Bitcoin DeFi advancing rapidly, the idea that investors must look beyond Bitcoin for DeFi opportunities is becoming outdated. The industry is experiencing a shift toward a more interconnected future, where Bitcoin’s robust security and Ethereum’s programmability align to drive broader adoption without compromising decentralization.”
Alexia Theodorou, Head of Derivatives at Kraken makes sense of the rapid changes in the crypto ecosystem, the rising price of altcoins and blue-chip tokens taking the lead. Theodorou says,
“We’ve seen DOGE perpetual futures volume in July surge to more than twice the previous 2025 monthly high on Kraken’s derivatives venue, putting it firmly on track to challenge the all-time record we saw back in November during the U.S. election cycle.
Furthermore, DOGE funding rates are at their most positive since the start of the year, further underscoring a growing conviction among traders that this move has legs. Historically, DOGE has acted as a high-beta vehicle for traders looking to maximize exposure in market rallies—and this time appears no different.
While newer coins like BONK and PENGU are seeing sharp volume growth, much of the activity remains concentrated in what we consider the ‘bluechips’ of the meme market. This suggests we’re still early in the rotation, with risk appetite building but not yet spilling into the broader speculative fringe.”
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
