Binance Experiences Increase in Altcoin Deposits Beyond 45K, Raising Questions About Bitcoin's Dominance
The cryptocurrency market is experiencing a significant shift, with a renewed altcoin rotation taking centre stage. This trend, according to CryptoQuant reports, is being driven by several key factors.
Firstly, there's the decoupling of altcoins from Bitcoin price action. For instance, Tron (TRX) has outperformed Bitcoin since March 2025, showing a growing divergence in price correlation. This pattern is typical ahead of altcoin seasons, marking a potential shift from Bitcoin dominance to selective altcoin strength.
Secondly, Ethereum (ETH) is outperforming Bitcoin (BTC). ETH’s relative price to BTC surged from 0.018 to 0.031, its highest since January 2024, outperforming BTC by about 72%. This outperformance is supported by the ETH/BTC Market Value to Realized Value (MVRV) ratio entering a bullish phase, potentially driving further gains relative to BTC.
Thirdly, there's an increase in altcoin trading volumes. ETH’s weekly spot trading volume recently surpassed Bitcoin’s for the first time since June 2024 ($25.7B vs. $24.4B), and overall altcoin trading volume reached $67 billion, the highest since March 2025. This volume surge indicates significant investor interest and capital inflow into altcoins.
Bitcoin Dominance (BTC.D) stalling below 63% also facilitates capital flow into altcoins. Historically, when Bitcoin consolidates or stalls after rallies, investors rotate into altcoins seeking higher returns.
However, it's worth noting that BTC.D flipped red on the week, indicating a potential altcoin rotation. Yet, the aggressive inflows suggest traders may be exiting into strength, not rotating.
The rotation in July was broad-based, affecting altcoins across the market. Bitcoin dominance (BTC.D) dropped 5.2% to 60.6%, while altcoin dominance spiked 10% to 39.2%. The Ethereum-led rotation was a notable headline move in July, fueled by a record 19-day streak of net inflows into spot Ethereum ETFs.
The market is currently at a key pivot. If the momentum fades further, we're likely looking at a cooldown phase before any fresh breakout. July's rally pushed risk assets into overbought levels, with altcoins looking stretched.
References:
- CryptoQuant
- The Block
- Cointelegraph
- Decrypt
- Decrypt
- In the cryptocurrency market, altcoins like XRP and Tron (TRX) are showing growth and decoupling from Bitcoin price action, indicating a potential shift from Bitcoin dominance towards selective altcoin strength.
- Ethereum (ETH) is outperforming Bitcoin (BTC), with ETH’s relative price to BTC surging to its highest since January 2024, outperforming BTC by about 72%.
- Trading volumes of altcoins, particularly Ethereum (ETH), have increased significantly, surpassing Bitcoin’s weekly spot trading volume for the first time since June 2024.
- Bitcoin Dominance (BTC.D) stalling below 63% and the subsequent rally of altcoins suggest a potential rotation away from Bitcoin and into altcoins seeking higher returns.
- The Ethereum-led rotation, fueled by record net inflows into spot Ethereum ETFs, was a notable headline move in July, contributing to a broad-based rotation affecting altcoins across the market.
- As the cryptocurrency market currently stands at a key pivot, further momentum could lead to a cooldown phase before any fresh breakout, with altcoins looking stretched due to July's rally pushing risk assets into overbought levels.
(References: CryptoQuant, The Block, Cointelegraph, Decrypt)
