The crypto market kicked off Monday with a bullish tilt, as capital rotated from Bitcoin into alternative cryptocurrencies. Data from CoinPedia shows the total altcoin market capitalization crossed $1.01 trillion after weeks of sideways movement.
XRP, DOGE, ADA Lead, PEPE Spikes 20%
Major altcoins saw clear gains: XRP, Dogecoin (DOGE), Cardano (ADA), and Polkadot (DOT) rose between 4% and 8% in the past 24 hours, while the memecoin Pepe (PEPE) surged 20%. Ethereum climbed about 7.5%, outpacing Bitcoin's 3.1% gain. Other large-cap coins such as Solana, Cardano, and Polkadot also posted 4% to 9% increases during the same period.
Memecoins performed even stronger. Bonk, Shiba Inu (SHIB), and Pudgy Penguins (PENGU) all recorded double-digit gains. These tokens often rally early in altcoin seasons due to high volatility and strong retail trading activity.
Altcoin Season Index Hits Highest Since January 9
The Altcoin Season Index, which tracks how many of the top 100 cryptocurrencies outperform Bitcoin, climbed to 49, its highest level since January 9. Despite this uptick, Bitcoin still dominates the market. It recently traded around $73,663, supported by robust institutional inflows. Bitcoin's dominance stands near 59.76%, indicating it still commands the majority of crypto market capitalization.
Analyst Predicts 20-40% Rally if Bitcoin Dominance Drops Below 55%
Crypto analyst Michaël van de Poppe believes a real altcoin rally may only begin once Bitcoin dominance falls below 55%, allowing smaller tokens to capture more market share. He expects the total altcoin market cap could rise 20% to 40% before hitting major resistance levels. If this plays out, the market would move closer to a full altcoin cycle.
Historically, altcoin rallies start after Bitcoin stabilizes or goes sideways, prompting traders to shift capital into higher-risk tokens. Capital rotation has begun, but whether Bitcoin dominance will break the 55% threshold remains the key variable.