Altcoin season buzz builds as Coinbase trading shift signals momentum

Coinbase has flagged early signals of a potential altcoin season, with trading activity tilting toward Ethereum and other majors. Analysts say the emerging Coinbase altcoin season conditions reflect shifting investor appetite away from Bitcoin dominance, setting the stage for broader market rallies.

In its August 2025 market outlook, the exchange said capital flows, regulatory clarity, and macroeconomic shifts are creating a favorable setup ahead of a potential U.S. Federal Reserve interest rate cut in September.

“Bitcoin’s dominance has declined from 65% in May to 59% in August — a clear indicator of early rotation,” — Coinbase research team, in its report.

The exchange noted that altcoin market capitalization has grown more than 50% since July, hitting $1.4 trillion.

Ethereum leads the Coinbase altcoin season narrative

Coinbase said the Coinbase altcoin season story is being driven by Ethereum, whose market cap has surged 50% since early July. This momentum stems from large-scale treasury acquisitions and a rising narrative around stablecoins and tokenized real-world assets.

Bitmine Immersion Technologies, for example, has acquired 1.2 million ETH after raising $20 billion, with capacity for $24.5 billion more in purchases.

“Institutional treasuries are accumulating ETH at a pace we haven’t seen before,” —James Whitaker, senior market strategist at Digital Asset Research.

Together, top holders now control nearly 3 million ETH, roughly 2% of total supply.

Tokens tied to Ethereum, such as Arbitrum, Ethena, Lido DAO, and Optimism, have largely mirrored ETH’s moves. Lido has been the standout, rallying 58% this month after a U.S. SEC staff statement clarified that certain liquid staking tokens do not qualify as securities.

Retail capital could drive the next phase

While institutional flows dominate the current phase of Coinbase altcoin season, Coinbase highlighted that retail investors may soon join the move. More than $7.2 trillion is parked in U.S. money market funds — the highest on record — representing what the exchange calls “missed opportunity costs” as traditional markets face high valuations and global trade uncertainties.

“Rate cuts will likely reduce the appeal of these funds and push more liquidity toward crypto,” — Sarah Lopez, head of macro strategy at

BlockBridge Analytics. Coinbase’s liquidity index, tracking stablecoin issuance, trading volumes, and order book depth, has begun recovering after six months of decline, suggesting market conditions are improving.

Not a full altcoin season — yet

Coinbase stressed that while indicators point toward a Coinbase altcoin season, the Altcoin Season Index remains in the low 40s, below the 75 level that signals a full-scale rally. The firm sees September as a potential turning point if macro and regulatory tailwinds align.

“Our outlook remains constructive, though we believe we are in an early rotation phase rather than a full altcoin season,” the report stated.

With the Fed expected to ease policy and the SEC showing greater flexibility toward some token models, Coinbase believes the groundwork for a deeper Coinbase altcoin season is being laid.

Outlook for Q4 2025

If conditions strengthen, the Coinbase altcoin season could accelerate in the final quarter of 2025, driven by Ethereum-linked assets and new institutional participation. However, Coinbase cautioned that sudden macroeconomic shifts or regulatory reversals could slow momentum.

For crypto investors, the message is clear: the Coinbase altcoin season may not be in full bloom, but the seeds are already planted.