Altcoin Season May Have Finally Arrived Amid Institutional Interest and Clarity

A long-awaited rotation from Bitcoin to the altcoin market could be in motion, as per Sygnum’s Q3 2025 Investment Outlook. The digital asset bank points to increased regulatory clarity, on-chain activity, and improved market liquidity as the catalysts behind this shift, hinting that the much-anticipated “altseason” may have finally begun. Earlier in the year, geopolitical uncertainty and concerns around U.S. fiscal stability had pushed investors toward Bitcoin, temporarily suppressing the altcoin market. But with regulatory bodies now offering clearer guidance—especially regarding staking and token classification—altcoins with strong fundamentals are seeing renewed interest. Bitcoin Dominance Fades Amid Altcoin Resurgence According to Sygnum, Bitcoin’s dominance recently fell by more than 6% after reaching its highest levels since 2021 . While Bitcoin remains in a strong position—driven by high demand, limited supply, and over $160 billion now locked in spot ETFs—capital appears to be flowing back into the altcoin market. Bitcoin’s recent all-time high above $123,000 was backed by surging institutional interest, including over 110,000 BTC accumulated by ETFs last quarter. Ether also displayed bullish signals, with falling balances on exchanges, increasing ETF inflows, and nearly 30% of its liquid supply staked. In particular, Ethereum has captured institutional attention following its successful Pectra upgrade, which raised staking limits and improved network performance. Sygnum noted that the SEC’s recent clarification that protocol staking does not violate securities laws further strengthened investor confidence in ETH. A wave of tokenization efforts from major financial institutions like BNY Mellon and Société Générale, as well as political entities backing stablecoins like the USD1, are increasingly being built on Ethereum, reinforcing its position as a leader in the smart contract ecosystem. DEX and DeFi See Explosive Growth Decentralized exchanges (DEXs) captured 30% of crypto spot market share last quarter, setting a new record with over $530 billion in trading volume. This rise was fueled in part by the popularity of memecoin launches, particularly on platforms like PancakeSwap and Solana’s PumpSwap. The DeFi lending sector also reached new highs, with $70 billion in total value locked. Liquid staking now accounts for over 30% of all staked Ether, as investors continue to embrace higher risk and leverage. Still, Sygnum warned that altcoin enthusiasm—especially around memecoins—could risk creating another bubble, with a sharp correction likely if speculative momentum outpaces fundamentals. The post Altcoin Season May Have Finally Arrived Amid Institutional Interest and Clarity appeared first on TheCoinrise.com .

Source: The Coin Rise