Ethereum Leads Institutions: With nearly 3M ETH held by firms and liquid staking gaining clarity, ETH and related tokens show strong momentum.
The crypto market just lost $107 billion, with Bitcoin dipping to $113,461 and eyeing key support at $112,526. The sell-off was fueled by SEC scrutiny into Alt5 Sigma’s $1.5 billion deal with Trump’s World Liberty Financial, sparking fresh uncertainty. Yet, analysts say this turbulence could set the stage for September’s anticipated altcoin season, as capital rotation often accelerates when Bitcoin stalls near critical levels.
Crypto heavyweights Coinbase and Pantera Capital are pointing to September as the potential start of altcoin season. After months of Bitcoin dominance, market conditions now appear ripe for a broader token rally.
As per the latest report, for much of the past year, Bitcoin has carried the market, first through the ETF boom from late 2023 to early 2024, then boosted by Trump’s policy optimism through mid-2024. Altcoins, however, were largely left out. Pantera highlights that in past cycles, altcoins drove the majority of growth: 66% in 2015-2018 and 55% in 2018-2021. In this cycle, their share sits at just 35%, suggesting major upside potential.
Meanwhile, a classic sign of altcoin season is Bitcoin losing dominance, and that’s already happening. Coinbase notes BTC’s market share has dropped from 65% in May to below 58% in August. At the same time, the altcoin market cap has surged 50% to $1.4 trillion. Retail excitement is also visible, with Google searches for “altcoins” spiking to their highest levels since the explosive run of early 2018.
Coinbase further highlighted that a record $7.2 trillion sitting in U.S. money market funds could flow back into crypto once the Fed turns more accommodative, making it a major pool of capital waiting on the sidelines.
“We think market conditions now point to a potential shift toward a full-scale altcoin season as we head into September,” said David Duong, Coinbase Institutional’s head of research.
Giving the altcoin vibes, Ethereum is still the top pick for institutions, with companies holding nearly 3 million ETH, over 2% of its supply. Tokens linked to ETH, like ARB, OP, ENA, and especially LDO, are seeing bigger price swings. LDO has surged 58% this month, helped by the SEC’s view that liquid staking may not count as a securities offering. Real-world asset tokenization and institutional inflows are also boosting demand, while US legislative momentum from the GENIUS and CLARITY bills is adding credibility. These developments could provide the framework for wider adoption, giving Ethereum and other top altcoins stronger tailwinds.
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