Altcoin Season May Come In September, Says Coinbase and Pantera

Cryptocurrency exchange Coinbase and crypto asset manager Pantera Capital have predicted that an altcoin season could begin as early as September.

They analyzed that market conditions are now supporting a broader token rally.

Altcoins’ Contribution to Market Growth Worth Monitoring

In a report published on Tuesday, Pantera Capital noted that altcoins have started outperforming Bitcoin in the recent crypto price surge cycle. This suggests a shift from the recent Bitcoin-centric rally structure.

Recently, Bitcoin has gone through two distinct rally cycles. Bitcoin spot ETFs triggered the surge from late 2023 to early 2024, and Trump’s policies fueled Bitcoin’s rise from June to December 2024. Altcoins were left out of both rallies, but now the tide is turning, according to the asset manager firm.

BTC/USD Chart. Source: CoinMarketCap

Pantera Capital emphasized the need to monitor altcoins’ contribution to market growth closely. During the 2015-2018 bull cycle, altcoins contributed approximately 66% of the growth. In the 2018-2021 cycle, their contribution was 55%.

Their contribution to the current bull cycle has been 35%. Historical cycle statistics suggest that an additional 20% growth is possible.

A typical phenomenon that precedes a full-blown crypto bull run is a decrease in Bitcoin’s dominance. Coinbase pointed out that Bitcoin’s market share has dropped from 65% in May to below 58% in August. Over the same period, the total market capitalization of altcoins has surged by more than 50% since July, reaching $1.4 trillion.

They explained that individual investor interest has recently shifted toward altcoins. The increase in Google searches for “altcoins” confirms this, reaching levels not seen since January 2018.

They added that legislative acts in the US, like the GENIUS and CLARITY bills, are strengthening momentum. Ethereum, in particular, is benefiting from an increase in real-world asset inflows and institutional interest.