Coinbase Report Signals Potential Altcoin Season in September as Bitcoin Dominance Declines

Market dynamics are shifting as Bitcoin's dominance in the cryptocurrency sector shows signs of weakening. According to Coinbase Institutional's August 2025 report, capital may soon rotate toward altcoins, with September poised to mark the beginning of a sustained altcoin season. Historically, Ethereum (ETH), Solana (SOL), and other large-cap tokens have led such cycles when they outperform Bitcoin over extended periods. This potential shift could present new opportunities for investors as the crypto market evolves.

Altcoin Season May Emerge in September as Bitcoin Dominance Wanes: Coinbase Institutional

Market dynamics are shifting as Bitcoin's grip on the crypto sector shows signs of weakening. Coinbase Institutional's August report suggests capital may soon rotate toward altcoins, with September poised to mark the beginning of a sustained altcoin season.

Ethereum (ETH), Solana (SOL), and other large-cap tokens historically lead such cycles when they outperform Bitcoin over extended periods. Three key drivers underpin this forecast: declining BTC dominance, improving liquidity conditions, and growing investor appetite for higher-beta assets.

Bitcoin's market share has softened after peaking earlier this year, creating conditions where capital typically flows first into large-cap altcoins before trickling down to mid- and small-cap projects. Exchange liquidity metrics support this transition, with tighter bid-ask spreads and deeper order books across platforms like Coinbase making altcoin positioning more efficient.

Coinbase Smart Wallets Surpass 1 Million Users Amid Base App Rollout

Coinbase's Smart Wallet has eclipsed 1 million users, driven by a seismic surge in adoption following the launch of its rebranded Base app. On-chain data reveals 1,074,277 total account creations, with 270,000 new wallets added on August 16 alone—the second-largest daily jump in history. The Base Account feature alone generated 279,000 signups, representing 25.9% of the total.

The acceleration stems from Coinbase's strategic pivot in mid-July, repositioning Base as an all-in-one mobile hub integrating social features, mini-apps, and payments. By automatically migrating existing Coinbase Wallet users and funneling new onboarding through Base, the exchange engineered August's growth spurt. Early-month reports already noted hundreds of thousands of Smart Wallet creations before the mid-August inflection point.