Altcoins are experiencing a strong rally, outpacing Bitcoin, as market participants shift focus to DeFi and Layer-2 tokens in early July 2025.
The rally signifies a shift in market dynamics, with a declining Bitcoin market share enhancing speculative interest in alternatives, supported by broad altcoin gains and institutional adjustments.
Altcoins Surge as Bitcoin Dominance Slides Below 64%
The latest cryptocurrency rally sees altcoins surge while Bitcoin’s dominance declines, creating a shift in market interest. This rally is attributed to a broad risk-on sentiment among investors, enhancing DeFi and Layer-2 tokens.
Key players like Thomas Perfumo of Kraken highlighted the drop in Bitcoin dominance, supporting the current altcoin leadership. Analysts and observers note that institutional interest is shifting towards Ethereum and altcoins.
Thomas Perfumo, Global Economist, Kraken, “Altcoins are leading the pack in this latest rally… [A] drop in bitcoin dominance is reinforcing a broad-based rally with altcoins leading the charge.” Source
Whale Accumulation Boosts Altcoins Like PENGU and HBAR
Market participants report a surge in altcoins such as PENGU and HBAR, attributed to whale accumulation. In contrast, tokens like LTC and BCH failed to capture similar capital inflows, underperforming amid the rally.
Reactions suggest evolving trading interests, with data indicating a notable decline in Bitcoin’s market share from 64% to 63.5%. Expert opinions suggest this is indicative of a broader capital rotation into altcoins.
Recurring Patterns: Altcoin Gains Follow Bitcoin Rallies
Past cycles show altcoin leadership emerging following Bitcoin-centric rallies, a pattern seen in 2017 and 2021. Altseason-type behaviors, resulting from BTC dominance drops during these periods, align with current trends.
Crypto analysts, including Rekt Capital, suggest that near-term pullbacks in assets like HBAR might serve as strategic entry points, supported by technical setups aimed at breaking upper resistance levels.
Rekt Capital, Crypto Analyst, “[HBAR’s] recent 62% surge aligns closely with its 2021 price cycle… any near-term pullback should be viewed as a potential retest with the goal of breaking above the current lower high resistance level.” Source
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