A new report from cryptocurrency analysis firm Alphractal points to the possibility of a strong altcoin rally beginning in the third quarter of 2025, driven by growing stablecoin liquidity and shifting market dominance metrics.
According to the firm, stablecoins are rapidly expanding, with total market value nearing $250 billion. This accounts for approximately 7.5% of the entire crypto market. Tether (USDT) leads the sector with a 66% share of all stablecoins, continuing to dominate as the preferred liquidity layer for traders and institutions.
Alphractal’s analysis highlights that Bitcoin and stablecoin dominance combined has reached 73.5% of the total crypto market cap — a level historically associated with strong accumulation phases and early altcoin market rotations.
“This dominance structure often signals that capital is being parked in preparation for high-beta plays in altcoins,” the report notes.
Joao Wedson, CEO of Alphractal, believes the current market is misreading conditions. While many investors remain cautious or sidelined, Wedson argues that large pools of stable liquidity could rapidly shift into altcoins, igniting a surprise rally.
“Contrary to the negative sentiment, we see significant upside potential. The altcoin market may catch many off guard,” Wedson said.
He further emphasized that altcoins are currently underheld relative to historic norms, creating a setup for a parabolic move if momentum shifts even modestly.
With key metrics aligning — rising stablecoin reserves, high Bitcoin dominance, and investor hesitation — Alphractal’s team projects that altseason could kick off as early as summer 2025, with strong upside for leading altcoins once capital rotation begins.
