Key takeaways
Altcoins are moving with some momentum, but the rally may be more utility-driven this time. While conditions are favorable, it is still early to call altseason.
Altcoins are heating up again. However, this time, the setup feels different.
With Bitcoin’s dominance [BTC.D] slipping to 59% at press time and Ethereum-linked tokens leading the charge, will the next altseason be built on stronger fundamentals?
Why this altseason could be different
A recent Coinbase report stated that institutional focus has narrowed in on Ethereum [ETH], not the broader altcoin market. In fact, retail capital – over $7 trillion parked in money market funds – is yet to flow in.
If that changes, it could fuel a far more sustained rally. Leading the market’s momentum is Lido DAO [LDO], with the same surging by 58% month-to-date. Lately, it has been riding Ethereum’s gains, boosted by the SEC’s recent clarity on liquid staking.
However, unlike previous cycles driven by memes and mania, this rotation may be more grounded in real use cases and staking-based utility.
Fed rate cuts could be the catalyst
With the CME FedWatch Tool pricing in a 92% chance of a rate cut in September, the environment may be shifting in crypto’s favor soon.
Lower rates could make money market funds less attractive, encouraging capital to move into risk assets like crypto.
Source: cmegroup.com
At the same time, regulatory clarity has been improving too. Especially around Ethereum, liquid staking, and stablecoins.