- Altcoins near historic dominance low, hinting at potential surge in 2025–2027.
- CMC Index shows Bitcoin dominance at 24, reflecting sustained Bitcoin strength.
- Fed rate cuts and easing inflation may boost altcoins and shift capital flows.
Recent market data shows that altcoins outside the top 10 are nearing a previous low in market dominance, similar to levels seen before the major 2021 altseason. Analysts have noted that this pattern could point toward a possible surge in altcoin market share in the coming years.
Altcoin dominance, which measures the combined market share of altcoins excluding the largest ten cryptocurrencies, has fluctuated since 2017. Following a peak of over 18% between 2021 and 2022, dominance declined through 2023 and 2024, dipping below 8%.
Observers have identified a support zone between 6% and 8%, the same range that preceded the previous altseason surge. Current readings show altcoin dominance returning to this support area, prompting projections of a gradual increase beginning in 2025 and extending through 2026 and 2027.
At the same time, the CoinMarketCap Altcoin Season Index gives insight into relative market performance by comparing the top 100 altcoins against Bitcoin over the past 90 days. The index currently stands at 24 out of 100, placing the market firmly in a Bitcoin Season phase, where Bitcoin outperforms altcoins.
This position is consistent with values from recent weeks and months, which have remained below 50, signaling sustained Bitcoin strength. Historically, the index reached a high of 87 in December 2024 during an altcoin rally and a low of 12 in April 2025 during an intensified Bitcoin Season. Correspondingly, the altcoin market capitalization varies with these phases, rising during altcoin rallies and falling as Bitcoin dominance increases.
Macroeconomic Factors Signal Potential Altcoin Rally
Alongside these market trends, macroeconomic forecasts show possible factors for an altcoin resurgence. Morgan Stanley projects up to seven interest rate cuts by the Federal Reserve in 2026, which would reduce the Fed funds rate to approximately 2.5%. Past rate reductions in late 2024 coincided with altcoin price gains, meaning that easing monetary policy could support risk-on assets such as altcoins.
Altcoin performance is also likely to be boosted by the continued lowering of inflation and liquidity injection. The possibility of this future can be traced to the rotations of capital of Bitcoin into Ethereum, followed by the movement into mid-cap and small altcoins, promising a shift in the line of investment flow.
All these factors in combination allow altcoins to conquer their market share in the future. Nevertheless, this is being met by a highly favorable combination of technical factors, market trends, and macroeconomic developments, suggesting a situation that may prove to be supportive of altcoin growth in 2026 and beyond.
