Altcoins Primed for Dominance? These On-Chain Metrics Scream Market Revolution
Forget Bitcoin's tired monopoly—altcoins are loading their rockets. On-chain data reveals a tectonic shift brewing beneath the surface.
Whale wallets are dumping BTC for ETH, SOL, and DOT at rates not seen since the 2021 bull run. Meanwhile, stablecoin inflows to alt exchanges just hit a 17-month high.
Retail's back too—Google searches for 'how to buy altcoins' spiked 240% last week. Even the SEC's usual FUD can't stop this freight train.
Will this finally be the altseason that makes crypto bros retire? Or just another pump before Wall Street 'discovers' blockchain (again)? Either way, buckle up.
ERC20 Stablecoin Supply Hits New All-Time High Of Nearly $130 Billion
In a Quicktake post on the CryptoQuant platform, CryptoOnchain shared that the latest data signals that the market appears to be in the early phase of an altseason. This optimistic hypothesis is based on two primary on-chain metrics: the Stablecoin Liquidity and the Bitcoin Dominance (BTC.D) metric.
Firstly, CryptoOnchain revealed that the total supply of ERC20 stablecoins has witnessed a notable spike, recently reaching an all-time high of around $128.7 billion. Typically, a significant increase in stablecoin supply is often associated with elevated liquidity, allowing investors to take new positions in risk assets like altcoins.
CryptoOnchain added:
Alongside this, active addresses for stablecoins have broken past 250K for the first time in history, underscoring rising network activity and circulation levels typical before major market rotations.
The on-chain analyst also highlighted that the All Stablecoins (ERC20) Exchange Netflow on Binance has witnessed positive inflows in recent weeks, surpassing the $67 million mark multiple times. As CryptoOnchain noted, positive exchange netflows typically indicate increased purchasing power for investors.
Furthermore, as shown in the chart above, the BTC Dominance metric faced rejection from its Previous Cycle Bull Run Resistance zone. From a historical perspective, these rejections have coincided with capital rotating from bitcoin into mid- and large-cap altcoins—an early hallmark sign of the altseason.
Ultimately, the combination of the increased stablecoin liquidity and Bitcoin Dominance technical rejection could mark the beginning of a breakout in the altcoin market. CryptoOnchain noted that a strong ethereum breakout above its “This Cycle Bull Run Resistance” with a continuous downturn for BTC.D would be a key confirmation to look out for.
Altcoins Total Market Capitalization
As of this writing, the altcoin market is valued at around $1.57 trillion, reflecting an over 1% decline in the past 24 hours. According to data from TradingView, the total capitalization of altcoins has jumped by more than 5% in the past seven days.
