Altcoin Rally Accelerates as Bitcoin Holds Below $120K
Altcoins continued to outperform Bitcoin at the start of the week, fueled by growing institutional interest, favorable macro conditions, and fresh attention on real-world asset (RWA) tokenization. Bitcoin (BTC) hovered around $118,800 during Monday’s Asia trading hours, posting a 1% daily gain and a 2.6% weekly rise.
Meanwhile, capital flowed aggressively into altcoins including Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE), as market participants widened exposure beyond Bitcoin.
Ethereum Leads Institutional Rotation
Ethereum surged 3.7% to $3,793 — its highest level since early 2022 — bringing its weekly gains to 25%. Analysts attribute the rally to inflows from ETH-based ETFs, rising demand for Ethereum-native treasury products, and its central role in RWA tokenization.
“The Ethereum bid is being driven by institutional inflows and the anticipation of a potential breakout to new highs,” said Eugene Cheung, Chief Commercial Officer at OSL. “ETH remains the last of the majors yet to reclaim its all-time peak this cycle.”
The ETH/BTC ratio rebounded to its highest point since Q1, signaling renewed confidence in Ethereum relative to Bitcoin.
Broad Altcoin Momentum
- XRP climbed 4.1% to $3.55
- SOL jumped 6.6% to $189
- Cardano (ADA) and BNB each rose over 3%
- Dogecoin (DOGE) stood out with a 9.6% gain to $0.2774, now up over 33% for the week — its strongest 7-day performance in over a year
“Altcoins are starting to command attention again,” said Enmanuel Cardozo, analyst at Brickken. “Bitcoin’s pause below all-time highs has prompted rotation into high-beta names.”
Bitcoin dominance — its share of the overall crypto market — fell from 66% in June to 61.75%, per TradingView data, suggesting early signs of an altcoin cycle entering Q3.
Policy Tailwinds and RWA Hype Boost Sentiment
Supportive macro trends and pending U.S. legislation are further fueling risk-on behavior across altcoins. The GENIUS Act, which aims to provide regulatory clarity on stablecoins and crypto taxation, failed a procedural vote last week but continues to progress in Congress.
“The market is anticipating a regulatory breakthrough,” said Cheung. “Any clarity benefits Ethereum, given its ecosystem role.”
At the same time, the RWA narrative is gaining ground. Over $24 billion in tokenized real-world assets — including credit, U.S. Treasuries, and real estate — are now on-chain. Institutions like BlackRock and JPMorgan have begun exploring the sector more seriously.
“Tokenized assets are eating into DeFi’s total value locked,” said Cardozo. “This institutional theme has legs.”
Looking Ahead: Altseason Incoming?
Some analysts are hesitant to call a full-blown altseason just yet, but signs of broad rotation are growing.
“Much of traditional finance is already allocated to BTC,” said Augustine Fan, head of insights at SignalPlus. “Now we’re seeing flows move out the risk curve — into ETH and real-world asset-linked tokens.”
If Bitcoin remains range-bound, traders may continue favoring altcoins with stronger use cases and growing institutional traction.
“Whether or not this is the start of a classic altseason, the momentum is clearly shifting,” Cardozo added. “And tokens tied to real-world finance could lead the charge.”
