 
 
Leading crypto exchange Coinbase has rolled out its monthly outlook report, in which it observed that Bitcoin’s market dominance dropped from 65% in May 2025 to 59% in August 2025. The firm noted that CoinMarketCap’s altcoin season index is currently below the 75 threshold, which is a signal that altcoin season is in motion.
Per Coinbase’s data, the divergence in the Altcoin Season Index vs the total altcoin market cap denotes the surge in institutional interest in Ethereum (ETH), aided by rising demand from digital asset treasures and growing interests in stablecoins and real-world assets (RWas).
Coinbase notes that, although its outlook remains constructive, its views on the altcoin season have evolved. To this effect, the firm attributes the decrease in Bitcoin’s dominance to an early rotation of capital into altcoins like Ethereum, XRP, Solana, Cardano, Shiba Inu, and Dogecoin, rather than a full-scale altcoin season at this current stage.
However, the firm maintains an overall optimistic outlook fueled by macro factors and expected regulatory developments.
As excerpts from the report read;
 
“…. with the altcoin market cap climbing and the Altcoin Season Index showing early positive signals, we believe conditions are setting up for a potential rotation into a more mature altcoin season as we head into September.”
Addressing the current conversation on whether Fed cuts could impact the market by indicating a local top for the crypto market come September, Coinbase asserts that Fed easing could instead boost an increase in retail participation in the mid-term.
As noted in the report, this position is fueled by the bulk of retail capital observed on the sidelines in the money market funds and other places, which goes up to over $7 trillion.
Source: https://zycrypto.com/coinbase-says-altseason-building-as-eth-xrp-sol-ada-shib-drive-7-trillion-capital-rotation/